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Godrej Consumer Products' ad spend rises 5.32% in Q3, despite 14% decline in profit
In the December quarter of FY25, GCPL registered a profit of Rs 341.54 crore from Rs 472.58 crore in the corresponding quarter last fiscal.
GCPL has ramped up investment in incense sticks, which have a market share of over Rs 100 crore
Godrej Consumer Products has increased its standalone advertisement and publicity expenses by 5.32 percent in the third quarter of fiscal year 2025. The maker of Hit, Cinthol soap, and Good Knight among others spent Rs 266.85 crore on advertisement compared to Rs 253.35 crore in Q3 FY 24.
On a consolidated basis, the GCPL spent Rs 364.37 crore on ads and publicity.
The FMCG company's profit saw a 27.7 percent decline over the same period. In the December quarter of FY25, GCPL registered a profit of Rs 341.54 crore from Rs 472.58 crore in the corresponding quarter last fiscal.
The company's consolidated net profit declined by 14% year-on-year due to temporary headwinds.
The total income of Godrej in Q3 stood at Rs 2,324 crore- up 2.8 percent.
According to Sudhir Sitapati, Managing Director and CEO of GCPL, "Demand conditions in India have witnessed temporary headwinds over the past few months, led by a slowdown in urban consumption. The surge in palm oil prices by more than 40 percent along with weak seasonality in Household Insecticides has led to a flat underlying volume growth and mid-single digit underlying sales growth for our Standalone business".
The home care segment of the GCPL, grew by 4 percent in Q3. The company said it was impacted by a relatively poor season. However, Goodknight Agarbatti has seen strong outperformance and has gained significant market share in the Incense Sticks category.
The personal care segment saw a 2 percent growth in the December quarter due to inflation in palm derivatives.
Globally, GCPL said that sales grew by 8 percent in constant currency terms and 9 percent in INR terms in Indonesia. Africa, USA, and Middle East (organic) sales grew by 1 percent in constant currency terms while it declined by 8% in INR terms.
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