Godrej Consumer Products (GCPL) reported a 20.62% increase in its spending on Advertising and Publicity in Q3 of FY23 on a YoY basis.
The ad spends of the FMCG player in the quarter ended December 31, 2022 stood at Rs 275.78 crore, as opposed to the Rs 228.63 crore it had spent in the corresponding quarter a year ago.
However, on a QoQ basis, the advertising spends of the FMCG player witnessed a decline of 2.85% as it had spent Rs 283.87 crore in Q2 of FY23.
Furthermore, the company also saw a spurt of 3.55% in its PAT on a YoY basis as it clocked in Rs 546.34 crore in the third quarter of the current fiscal year. In the corresponding quarter of the previous financial year, GCPL had registered a PAT of Rs 527.60 crore.
On a quarterly basis, the FMCG player has registered a spike of 52.24% as compared to the previous quarter (Q2) of FY23, where it had registered a profit of Rs 358.86 crore.
The revenue from the Sale of Products of the Godrej group's FMCG arm was also up 8.9% at Rs 3,567.72 crore during the quarter under review, as against Rs 3,273.63 crore in the corresponding period of the last fiscal year.
GCPL's total expenses were also up by 9.4% YoY in the third quarter of the current fiscal year and stood at Rs 2,969.52 crore, juxtaposed to the corresponding quarter of the previous year
wherein it was reported at Rs 2,714.32 crore.
Sudhir Sitapati, Managing Director and CEO, GCPL, said, “We delivered an all-round performance in Q3 of FY23. Overall sales grew by 9% and we witnessed sharp sequential uplift in underlying volume growth. Consolidated volume grew by 1%. Our overall quality of profits has been healthy with double-digit EBITDA growth of 10%. Gross margins expanded by 330 bps quarter-on-quarter and 50 bps year-on-year. Continued upfront working media investments grew by 28%. PAT, without exceptional items and one-offs, grew by 13%.”
Furthermore, Sitapati also went on to add that from a category perspective, the FMCG player saw a broad-based double-digit growth in the country and its Personal Care and Home Care segments grew by 14% and 10%, respectively.
“With commodity pressures abating, we expect gradual recovery in consumption, expansion in gross margins, upfront marketing investments with a significant focus on reducing controllable costs and improvement in profitability in the coming quarters,” he stated.
He also went on to add that GCPL continues to have a healthy balance sheet, is net cash positive and on track in its journey to reduce inventory and wasted cost to drive profitable and sustainable volume growth across portfolio through category development.