MAM
Global ad spend to increase by 4.9% to $465.5 bn in 2012
MUMBAI: Following 3.8 per cent growth in 2011, global ad spend is expected to grow by 4.9 per cent in 2012 to $465.5 billion, according to the latest forecast from Strategy Analytics.
Although total US advertising spending is expected to increase by less than the global rate, at 2.7 per cent this year to $152.1 billion, it is a significant improvement on the 0.6 per cent growth in 2011. The US also underperforms Europe as a whole, which is expected to grow by 3.7 per cent to $136.3 billion in 2012.
Strategy Analytics director of digital media strategies Ed Barton explains, “Major global-impact events led by the Olympics, the US Presidential Elections and the European Football Championships, as well as Japan’s continuing recovery from the earthquake, combine to paint a brighter picture globally in 2012 for advertising spending overall. Furthermore, we expect that total ad spend will surpass half a trillion ($500bn) dollars in 2014.”
Global advertising by media type: Looking at spend by media type reveals that global TV advertising is expected to grow by five per cent in 2012 to $188.5 billion, equivalent to 40 per cent of all global spending.
Global print advertising is expected to grow by half a per cent, accounting for a 26.4 per cent share. Other traditional formats including cinema and radio will grow by approximately four per cent.
In contrast, global online advertising is expected to grow 12.8 per cent to $83.2bn in 2012, accounting for 18 per cent of global ad spending.
Barton says, “Online advertising will continue along its growth trajectory fuelled by strong growth in emerging markets and increased spending volumes on social networking and online video advertising.”
US/Europe advertising by media type: It is a similar picture in the US with online advertising leading the way. Online is expected to grow by 6.7 per cent this year to $27.4 billion compared to 3.7 per cent for TV and 2.9 per cent for other traditional formats. Print is expected to decline by 1.5 per cent.
In comparison, online advertising across Europe is expected to grow by 11.7 per cent this year compared to 3.4 per cent for TV and 2.4 per cent for ‘other traditional’ advertising. Print is expected to decline by 0.1 per cent.
Barton notes, “The US continues to be a leader in terms of the share of revenue generated by TV advertising – its share in the US this year will be approximately 41 per cent compared to 35 per cent in Europe and 24 per cent in the UK. In contrast, Internet advertising tends to have a smaller share of spending than in other markets. However, the share of advertising dollars allocated to the Internet continues to grow and is projected to overtake print advertising in the US in 2016 – a year ahead of when this is expected to happen for the total global market.”
Brands
Lotus Chocolate FY26 profit drops sharply, Q4 slips into loss
Revenue steady at Rs 579.55 crore, Q4 loss at Rs 4.47 crore
MUMBAI: Sweet on the top line, slightly bitter on the bottom Lotus Chocolate’s FY26 numbers tell a story that’s more dark cocoa than milk. The company managed to hold its revenue steady for the year, but profitability took a visible hit, capped by a loss-making fourth quarter. Lotus Chocolate Company Limited reported revenue from operations of Rs 579.55 crore for the year ended March 31, 2026, marginally up from Rs 573.75 crore in FY25. Total income rose to Rs 615.61 crore, compared with Rs 574.56 crore in the previous year, supported by a sharp jump in other income to Rs 36.06 crore from just Rs 0.81 crore.
However, the gains at the top did little to cushion profitability. Net profit for FY26 fell dramatically to Rs 0.10 crore, down from Rs 17.23 crore in FY25, reflecting significant cost pressures across the business.
The March quarter proved particularly challenging. The company reported a net loss of Rs 4.47 crore in Q4 FY26, compared with a profit of Rs 0.14 crore in the previous quarter and Rs 1.42 crore in the same quarter last year. Total income for the quarter stood at Rs 138.01 crore, down from Rs 150.21 crore in Q3 FY26 and Rs 157.52 crore in Q4 FY25.
Expenses remained elevated throughout the year. Total expenses rose to Rs 614.44 crore in FY26 from Rs 551.50 crore in FY25, eating into margins. A key swing factor was the cost of materials consumed, which stood at Rs 304.44 crore, while changes in inventories also reflected volatility, with a negative impact of Rs 62.44 crore in the previous year reversing to a positive Rs 52.93 crore this year.
Employee benefit expenses nearly doubled to Rs 34.00 crore from Rs 17.98 crore, while finance costs surged to Rs 16.31 crore from Rs 7.11 crore, indicating higher borrowing and funding costs. Depreciation and amortisation expenses also increased to Rs 3.92 crore from Rs 1.81 crore, reflecting ongoing investments.
On the balance sheet front, total assets stood at Rs 275.96 crore as of March 31, 2026, slightly higher than Rs 270.34 crore a year earlier. Borrowings remained significant, with current borrowings at Rs 89.00 crore, highlighting continued reliance on external funding.
Cash flow dynamics showed improvement in operations, with net cash generated from operating activities at Rs 93.23 crore, compared with a negative Rs 129.60 crore in FY25. However, financing outflows remained high at Rs 74.90 crore, driven largely by repayment of borrowings and interest costs.
Despite stable revenue, the sharp drop in profitability underscores the pressure of rising input costs, higher finance expenses and operational adjustments. The contrast between steady sales and squeezed margins leaves Lotus Chocolate at a crossroads proving that in business, as in confectionery, the real test isn’t just in the sweetness of sales, but in the richness of returns.
