GCPL records net profit of Rs 343 crore for Q2
Media reports say GCPL’s ad spends have grown by over 49% as compared to the same quarter last year
Godrej Consumer Products Limited (GCPL) has recorded a net profit of Rs 343 crore for the quarter ending September 30, 2022.
While the consolidated sales for the period shows 7% year-on-year growth, India business sales have increased 8% year-on-year.
As per media reports, GCPL’s ad spends have grown by over 49% as compared to the same quarter last year.
Commenting on the business performance of 2Q FY 2023, Sudhir Sitapati, Managing Director & CEO, GCPL, said: “We delivered a steady performance in 2Q FY 2023. Overall sales grew by 7% with 3-year CAGR of 9%. However, this growth was driven by pricing. We continue to believe that with the relatively nondiscretionary, mass pricing of our portfolio and good performance on market shares, volume growth will return in the short term. Our overall EBITDA declined by 15% driven by consumption of high-cost inventory, upfront marketing investments and a weak performance in our Indonesia and Latin America & SAARC businesses. PAT without exceptional items and one-offs declined by 21%.
From a geography perspective, India grew steady at 8%. Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 15% in INR and 13% in constant currency terms. Performance in our Indonesian business was weak, declining by 8% in INR and 11% in constant currency terms. Indonesia growth ex-hygiene category in the base 8% in constant currency. From a category perspective, in India, we saw continued momentum in Personal Care, which grew by 18%. Home Care grew by 2%.
With inflationary pressures abating, we expect recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs.
We continue to have a healthy balance sheet and our net debt to equity ratio continues to drop. We are on a journey to reduce inventory and wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development.”
