Soaps-to-soups consumer goods giant Hindustan Unilever (HUL) saw its net profit dip marginally by 1.8 per cent in the April-June quarter on account of higher advertising and promotional spending.
Net profit for the quarter was Rs 533.2 crore, against Rs 543 crore in the year-ago period. Its spending on advertising and promotions shot up 31 per cent to Rs 751 crore during the quarter as against Rs 561 crore in the same period last year.
During the quarter, HUL launched new products across its three key segments — soaps and detergents, personal care and processed foods.
“There will be more such launches and expansions and in the near future there will be a few price changes in order to maintain margins,” said R. Sridhar, CFO, HUL.
The overall sales of the company, during the quarter, rose 7.1 per cent to Rs 4,793 crore as against Rs 4,475 crore in the year-ago period.