Parle Agro reduced its advertising and promotional spends in FY25 even as profitability saw a sharp jump, signalling a tighter cost approach amid steady topline growth.
The beverage major spent Rs 256.83 Cr on advertising and promotions in the financial year ended March 31, 2025, down 7.7% year-on-year from Rs 278.38 Cr in FY24.
Despite the lower brand spends, Parle Agro’s total revenue from operations grew 5.1% to Rs 3,284.13 Cr in FY25, compared with Rs 3,126.06 Cr a year ago. Including other income, total income rose 5.0% to Rs 3,370.14 Cr.
The sharper impact was visible on the bottom line. Profit before tax surged to Rs 148.75 Cr, up nearly 883% from Rs 15.14 Cr in FY24. Net profit stood at Rs 115.38 Cr, a 567% jump over Rs 17.30 Cr reported in the previous year.
Total expenses remained largely flat, inching up just 0.8% year-on-year to Rs 3,221.39 Cr. While cost of materials consumed rose 11.7% to Rs 1,637.17 Cr and employee benefit expenses increased 10.0% to Rs 389.42 Cr, these were partly offset by lower finance costs and depreciation.
Finance costs declined 18.1% to Rs 53.52 Cr, while depreciation, depletion and amortisation expenses fell 15.2% to Rs 248.88 Cr, supporting the company’s profitability even as advertising spends were reined in.