Godrej Consumer Grows Ad Spend To Rs 257 Crore, Expects Subdued Q2 EBITDA Growth
Increased marketing investments support volume growth goals despite rising palm oil costs and tough market conditions
Ahead of its Q2 FY25 results, Godrej Consumer Products expects subdued consolidated EBITDA growth due to challenging operating conditions and elevated palm oil input costs. The FMCG company informed stock exchanges that it would not pass the entire cost increase to consumers immediately.
Godrej Consumer Products is focused on three key objectives for FY25 - achieving high single-digit Standalone underlying volume growth (UVG), high single-digit UVG in Indonesia and mid-teens consolidated EBITDA growth.
The company remains optimistic about both its standalone and international performance in Q2. "In terms of the top line, Standalone business is expected to perform well with high single-digit underlying volume and value growth. Our international businesses continue to do well on their relevant strategic objectives," it said.
Godrej's operations in Africa, the US and the Middle East could see a single-digit volume decline due to reduced trade stocks and portfolio simplification efforts. In Q1 (April-June), Godrej Consumer Products reported a 5.8 per cent year-on-year drop in standalone net profit, amounting to Rs 367.84 crore while revenue grew by 7.9 per cent, reaching Rs 2,162.93 crore.
The company’s standalone advertising spend for the June quarter was Rs 257 crore, up from Rs 246.65 crore during the same period last year.
