Godrej Consumer Products' standalone Q2 FY25 ad spends decrease by 5.7% YoY

Godrej Consumer Products Limited (GCPL) reported a 5.7% year-on-year decline in advertising and publicity expenditure for the second quarter ended September 30th, despite posting healthy revenue growth. On a standalone basis, the FMCG major spent Rs 263.6 crore on advertising during the Q2 FY25, down from Rs 279.4 crore in the corresponding quarter last year.

However, compared to the previous quarter (Q1 FY24), the company marginally increased its advertising outlay by 2.4% from Rs 257.5 crore.

On a consolidated basis, however, the company maintained relatively stable advertising investments, with ad spends at Rs 364 crore, showing only a marginal decline from Rs 366 crore in the same quarter last year.

The reduced marketing spending didn't appear to impact the company's top-line performance, as GCPL reported a 6.1% year-on-year growth in revenue from operations, reaching Rs 2,300 crore compared to Rs 2,168 crore in Q2 of the previous fiscal year.

The company maintained its profitability during the quarter, reporting a profit after tax of Rs 392.5 crore, with profit before exceptional items and tax standing at Rs 561.6 crore.