GCPL's ad spends surge 59.09% YoY to Rs 320.39 Crore in Q1FY24

Godrej Consumer Products Limited (GCPL), a leading FMCG company, has announced its financial results for the quarter ending June 30, 2023.

The company ramped up ad spends in Q1 of this fiscal year by 59.09% YoY, investing Rs 320.39 crore compared to Rs 201.39 crore in the same period last year.

In contrast, the company's Profit After Tax (PAT) for the June quarter was Rs 318.82 crore, marking a 7.62% YoY decrease from the Rs 345.12 crore achieved by the FMCG giant in Q1FY23.

The company announced that its board has granted approval for a capital expenditure of Rs 900 crore to establish new manufacturing sites in Tamil Nadu and Madhya Pradesh.

Commenting on the business performance of 1Q FY 2024, Sudhir Sitapati, MD and CEO, GCPL, says, "We started the year on a positive note and achieved healthy volume-led sales growth. In organic terms, our consolidated sales increased by 9% year-on-year driven by healthy volume growth of 8%. Sales in constant currency terms increased by 13%. In India, we continued to stay course on our strategy of volume-driven category development and delivered double-digit volume growth of 10%."

In the first quarter of FY 2024, India sales surged by 9%, reaching Rs 1,971 crore, accompanied by a robust 12% growth in volume.

Sitapati adds, "This performance was broad based with Home Care delivering double-digit volume growth and Personal Care in mid-single digits. Our value growth was lower than volume growth as we passed on the benefits of lower input costs to our consumers."