New Delhi: Godrej Consumer Products Limited (GCPL), a leading FMCG company, has reported a slight decrease in its advertising and publicity expenditure for the second quarter of the current fiscal year. Despite the reduction in marketing spend, the company managed to deliver robust revenue growth and maintain its profitability.
On a standalone basis, GCPL’s advertising expenses for Q2 FY25 declined by 5.7% year-on-year to Rs 263.6 crore from Rs 279.4 crore in the same period last year. However, compared to the previous quarter, the company increased its advertising outlay by 2.4%.
Consolidated advertising investments remained relatively stable, with a marginal decline from Rs 366 crore in Q2 FY24 to Rs 364 crore in Q2 FY25.
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Despite the reduced marketing spend, GCPL’s revenue from operations grew by 6.1% year-on-year to Rs 2,300 crore in Q2 FY25. The company also maintained its profitability, reporting a profit after tax of Rs 392.5 crore.
The company’s decision to reduce advertising spending could be attributed to various factors, including macroeconomic conditions, competitive pressures, or strategic realignment. However, the impact of this reduction on the company’s market share and long-term growth prospects remains to be seen.
