Godrej Consumer Products Ad & Publicity spends up in Q3-17

BENGALURU: Leading emerging markets FMCG player Godrej Consumer Products Limited (GCPL) increased its advertising and publicity expenses for the quarter and nine month period for the period ended 31 December 2016 (Q3-17, current quarter, 9M-17, YTD respectively) as compared to the respective periods of the previous year. The company spent 11.9 percent more towards this expense head at Rs 191.94 crore in Q3-17 as compared to Rs 171.53 crore in Q3-16. In 9M-17, GCPL spent 9.3 percent more at Rs 563.03 crore as compared to Rs 515.15 crore in the corresponding nine month period of the previous year.

While in terms of absolute rupees advertising and publicity spends increased in Q3-17 and 9M-17 as compared to Q3-16 and 9M-16 respectively, in terms of percentage of Total Income from Operations or TIO, YTD the percentage was constant at 7.9 percent. In Q3-17, the company’s ad and publicity spends were 7.7 percent of TIO, while in Q3-16 they were 7.5 percent of TIO.

Please refer to the figure below.

The company in its earnings release says that Q3-17 consolidated constant currency net sales increased by 12 percent year-on-year during which India business primary sales were flat while secondary sales increased by 2 percent on year-on-year basis despite demonetisation challenges, while international business sales grew by 28 percent year-on-year, on a constant currency basis.

On an actual basis, GPCL TIO increased 8.8 percent y-o-y to Rs 2,485.77 crore in Q3-17 from Rs 2,285.74 crore in Q3-16. Profit after tax (PAT) in the current quarter declined 4.3 percent y-o-y to Rs 351.78 crore (14.2 percent of TIO) from Rs 367.75 crore (16.1 percent of TIO). The company says that Q3-17 consolidated net profit and EPS, without exceptional items, increased by 5 percent.

In itsIndia business review GCPL shared the following insights:

Household Insecticides 

Household Insecticides delivered a relatively resilient performance with sales decline of 2 percent. The company says that it made healthy media investments during the quarter and gained market share. It says that it is also driving improvements in penetration rates led by innovative launches, awareness creating campaigns and activations. 


Soaps performance improved sequentially as primary sales declined by 6 percent with a high single digit decline in volume terms. This decline in volume was partly driven by the transient effect of the withdrawal of promotions, price increases and adverse impact of demonetisation. GCPL says that it has initiated selective price increases in our portfolio and are scaling back consumer and trade offers.

Hair Colours 

Hair Colours primary sales declined by 2 percent, while crème continues to be a lead growth driver with strong double-digit growth. During the quarter, Godrej Expert Rich Crème reached its highest ever market share on an exit basis. GCPL says that its effective communication campaigns, along with competitive media investments, have widened Godrej Expert Rich Crème’s distribution and penetration lead over competition. 

Liquid Detergents 

Liquid Detergents saw a reasonable growth performance. Primary sales increased by 2 percent, despite a delayed winter and demonetisation. Demand was to some extent impacted by demonetisation, given the semi-discretionary nature of the category.

Air Fresheners 

GCPL says that Godrej aer now ranks number 2 in the overall air care market. We continue to gain share, aided by innovations and strong execution. 

Health and Wellness 

GCPL says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej protekt, has been successfully introduced in general trade. 

CintholDeo stick 

The recently launched Cintholdeo stick for men and women has been well received by consumers. Godrej plans to continue to support this launch with innovative consumer engagement initiatives and impactful communication. 

Company speak

Commenting on the financial performance of Q3-17, GPCL chairman Adi Godrej said, “Despite a tough operating environment, we continued to deliver ahead-of-the-market profitable growth. Our 3QFY17 consolidated constant currency sales increased 12 percentand constant currency EBITDA increased 17 percent. We continue to deliver EBITDA growth ahead of sales growth, despite a strong base from the previous year.

In India, while demonetisation has resulted in some near-term disruptions, we have outperformed the overall market with secondary sales growth of 2 percent during the quarter. Our go to market approach has been resilient and dynamic. We have been disciplined in our execution and have worked closely with our trade and retail partners to deal with the situation. We have also invested competitively in brand building and innovations. Through our focus on operating efficiencies and judicious cost management, our EBITDA, too, has increased by 15 percent.

Our International business, too, performed well with revenue growth of 28 percent and EBITDA growth of 19 percent, in constant currency terms, led by continued strong performance in Africa.

Going forward, remonetisation should result in growth normalising in India over the next few months. In FY-18, implementation of the GST will provide strong momentum for a much better economic environment and stronger consumer demand.

We are relentlessly focusing on our strategy and continuing to invest in building a sustainable platform for the future. At the same time, we are driving our core to full potential, ensuring execution excellence and building on our agile and high performance culture.”

Latest Reads
Mamaearth celebrates #GoodnessInside as brand purpose

NEW DELHI: Mamaearth, the toxin-free personal care startup, announces its brand purpose as “Goodness Inside”. Mamaearth’s latest video brings forth this idea of ‘Goodness is a Choice’ to its consumers. It is a digital and social media led campaign with the key message that goodness isn’t a...

MAM Marketing Brands
Madison OOH launches OTS measurement updates for Covid2019 unlock periods

NEW DELHI: The Covid2019 lockdown has significantly changed the user mobility (traffic flow patterns). The current traffic movements are very different when compared to the pre-Covid2019 lockdown movements, and are quite unpredictable. Realising this unpredictable outdoor scenario, Madison decided...

MAM Marketing MAM
Mother Dairy collaborates with Wavemaker and Radio City to launch #RishtonKiImmunity

NEW DELHI: The recently launched butterscotch flavoured Haldi Milk by Mother Dairy has already received huge positive response. To spread the awareness further, Wavemaker in collaboration with Radio City have launched the latest campaign #RishtonKiImmunity.      The campaign aims at celebrating the...

MAM Media and Advertising Ad Campaigns
Vistara urges travellers to follow ‘flyercode’

NEW DELHI:  Vistara today announced ‘FlyerCODE’ – a set of simple and important considerations for customers to follow for a safe flying experience. An extension of airline’s campaign #FlyingFeelsSafeAgain, the #FlyerCODE is recommended in response to the airline’s recently concluded  customer...

MAM Media and Advertising Ad Campaigns
SBI Life launches ‘Apno ki #PoornaSuraksha’ campaign

MUMBAI: SBI Life Insurance, today, unveiled its new product campaign ‘Apno Ki #PoornaSuraksha’, highlighting the product’s (SBI Life’s Poorna Suraksha) dual protection feature which offers complete financial immunity by providing both Life cover and protection against 36 critical illnesses in a...

MAM Media and Advertising Ad Campaigns
L&K Saatchi & Saatchi strengthens creative team in Mumbai

Mumbai: L&K Saatchi & Saatchi India has announced two key appointments for its creative teams in Mumbai. Joining the agency are Chandani Samdaria, who comes on board as senior creative director and Nikita Goswami who has joined as creative director. The duo will report to L&K Saatchi...

MAM Media and Advertising People
OkCupid's digital campaign #AllyOfLove in the times of virtual dating

NEW DELHI: The Covid2019 pandemic has changed the rules of the dating game and so dating apps have had to strategise ways for couples to meet online, converse and also find romance in it. The dating platform, OkCupid recently celebrated pride month 2020 with a lot of conversation-starting campaigns...

MAM Media and Advertising Digital Agencies
Covid2019 did not upset top brands’ growth: Kantar report

NEW DELHI: According to Kantar’s Brand Footprint 2020 report, brands including Parle, Amul, Clinic Plus, Britannia and Ghadi emerged as the topmost chosen brands in the country in 2019. The report is an annual ranking of FMCG brands based on the Consumer Reach Points the brands scored in a year....

MAM Marketing Brands
Affiliate marketing: The new rage in the post-Covid2019 world

The Covid2019 outbreak has affected the marketing budgets of brands. The situation, despite being difficult, throws up opportunities to be innovative and get aggressive on new-age marketing strategies. While digital marketing has been in vogue for some time now, within this domain, several brands...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required