HUL cuts ad spends by nearly 15% YoY in Q2 amid profit decline

Hindustan Unilever Limited (HUL), one of India’s largest FMCG companies, has reported a noticeable reduction in its advertising and promotion (A&P) spends for the second quarter ended 30th September 2024.

The company’s A&P expenditure stood at Rs 1,464 crore, down 14.88% year-on-year (YoY) compared to Rs 1,720 crore in the same quarter last year. The advertising outlay also decreased by 10.95% quarter-on-quarter (QoQ) from Rs 1,644 crore reported in the June 2024 quarter.

Despite the drop in ad spends, HUL's revenue from operations in Q2 FY2024 rose marginally by 1.5% to Rs 15,508 crore, compared to Rs 15,276 crore in the year-ago period. However, the company’s standalone net profit saw a decline of 4%, falling to Rs 2,612 crore from Rs 2,717 crore reported in the same quarter last year.

The results come as the company’s Board of Directors recently evaluated the future of its Ice Cream business. Following the recommendation of an Independent Committee appointed on 6th September 2024, the Board announced on 23rd October 2024 that it will separate the Ice Cream division.