GCPL spends Rs 1,369.21 crore on advertising and publicity in FY2025

New Delhi: FMCG major Godrej Consumer Products (GCPL) reported a 2.5% increase in advertising and publicity expenses, reaching Rs 1,369.21 crore in FY2025, up from Rs 1,335.89 crore in FY2024.

GCPL's ad spending for Q4 rose by Rs 3.78 crore, reaching Rs 310.07 crore, compared to Rs 306.29 crore in the same quarter of the previous year.

In Q3, the company allocated Rs 364.37 crore to advertising. 

The company’s consolidated net profit of Rs 411.9 crore for the fourth quarter ended March 2025, helped by a volume growth in the domestic market.

It had incurred a loss of Rs 1,893.21 crore in the January-March period a year ago due to impairment of loss towards its Africa (including Strength Of Nature) business, according to a regulatory filing from Godrej Consumer Products (GCPL).

Total revenue from operations was at Rs 3,597.95 crore during the quarter under review. It was Rs 3,385.61 crore in the corresponding period last fiscal year.

"In Q4 FY 2025, consolidated organic sales grew by 7% in INR terms year-on-year on the back of underlying volume growth of 6%," said GCPL in its earnings statement.

Total expenses in the quarter were at Rs 3,000.84 crore.

GCPL Managing Director and CEO Sudhir Sitapati said, "We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our consolidated organic volumes for Q4FY25 grew by 6%, led by the India business growing volumes at 4% and Indonesia growing volumes at 5%."

Revenue from the Indian market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,184.92 crore.

On a standalone business, which mainly consists of domestic business, GCPL's "underlying volume grew by 4%, and sales grew by 8% year-on-year," it said.

According to Sitapati, the "demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50% is negatively impacting our EBITDA margin." However, buoyed by a good season, GCPL's Household Insecticides business grew volumes in strong double-digit.

"The volume growth on the non-soaps’ portfolio was high single digit, with soaps volume growth impacted by volume-price rebalancing," he said.

Revenue from GCPL's second-biggest market, Indonesia, was at Rs 504.29 crore, up 1.2% in the March quarter.

According to GCPL, Indonesia's underlying volume grew by 5%, though sales grew by 1% in INR terms and 1% in constant currency terms year-on-year.

GCPL's revenue from the Africa (including Strength of Nature) market was up 16.27% to Rs 690.34 crore in the March quarter.

"Africa, USA, and Middle East organic sales grew 12% in constant currency terms and 23% in INR terms, year-on-year," it said.

However, GCPL's revenue from other markets was down 11.3% to Rs 257.23 crore in Q4/FY25.

"Latin America and Others sales grew in constant currency terms, by 2%, but declined by 11% in INR terms year-on-year," it said.

In the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9%.

In FY25, "Consolidated organic underlying volume grew at 4%, sales grew by 4% in INR terms impacted by devaluation, and constant currency growth of 8% year-on-year," it said.

Meanwhile, in a separate filing, GCPL said its board, in a meeting held on Tuesday, declared an interim dividend of 500%, which is Rs 5/- per share of face value of Re 1 each for the financial year 2025-26.