Godrej Consumer slips 7% post September quarter business update

The company expects their EBITDA to decline in mid-teens in the September quarter of FY23, due to consumption of high-cost inventory, high marketing spends and weak Indonesia performance

Shares of Godrej Consumer Products Limited (GCPL) slipped 7 per cent to Rs 836.75 in Thursday’s intra-day trade, in an otherwise firm market, after the company expected mid-teen drop in EBITDA for the September quarter (Q2FY23), due to high inventory costs, high marketing spends, and weak Indonesia performance.

Despite that, significant correction in commodities like palm oil derivatives and crude oil, the personal care products company expects recovery in consumption, expansion in gross margins, and upfront marketing investments in the upcoming quarters.

“The Indian FMCG industry continued to remain soft during the quarter. Rural markets witnessed slower growth