Godrej Consumer Products’ adex jumps 6%, profits down by 14%

The decline in profits, according to the FMCG company, is attributed to soft consumption

author-image
BestMediaInfo Bureau
Updated On
New Update
GCPL
Listen to this article
0.75x 1x 1.5x
00:00 / 00:00

New Delhi: The advertisement and publicity expenses of Godrej Consumer Products Ltd saw an uptick of 6.14% year-on-year in the quarter ending December 31, 2024, climbing to Rs 364.37 crores from Rs 343.27 crores a year ago. 

The Indian FMCG conglomerate reported a 14.24% y-o-y decline in its net profit, led by a slowdown in urban consumption. 

The net profit for GCPL slumped to Rs 498.31 crores in the quarter ending December 2024, from 581.06 crores in the corresponding quarter of the previous year. 

In its filing on the BSE, GCPL reported a consolidated revenue from operations at Rs 3768.43 crores in the third quarter of the current financial year, up 2.97% from 3659.64 crores in the corresponding quarter previous year.

Commenting on the performance results, Sudhir Sitapati, Managing Director and CEO, GCPL, said, “Demand conditions in India have witnessed temporary headwinds over the past few months, led by a slowdown in urban consumption. Surge in palm oil prices by more than 40% along with weak seasonality in Household Insecticides has led to a flat underlying volume growth and midsingle digit underlying sales growth for our Standalone business.” 

He further noted, “Our categories of Air Fresheners, Laundry Liquids, etc. have continued to deliver strong double-digit underlying volume growth. In Household Insecticides, Goodknight Agarbatti has outperformed and gained significant market share in the Incense Sticks category. 

Premium formats in Household Insecticides were impacted due to Urban slowdown and category seasonality, however we have started to gain market share within premium formats, which suggests that the RNF molecule is working amongst consumers.”

Sitapati stated that the GCPL will remain focused on driving “volume-led growth” along with healthy investments in the company’s brands. “We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development,” he said. 

 

 

ad spends GCPL Godrej Consumer Products Q3 results Godrej Consumer Godrej Consumer Products Ltd
Advertisment