GSK Consumer Healthcare Ltd records high growth for the fifteen month period ended on March 31, 2014

Press Release
New Delhi, May 09, 2014

GlaxoSmithKline Consumer Healthcare Ltd records high growth for the fifteen month period ended on March 31, 2014

AUDITED RESULTS HIGHLIGHTS
Financial Year for Fifteen month period ending March 31, 2014

  • Sales, PBT and PAT for the 15 month period were Rs 4,683 Crores, Rs 1,016 and Rs 675 Crores respectively.
  • The Board recommended a total Dividend of Rs. 45 per equity share of Rs. 10 each
  • New Product launches including Horlicks Promind, Horlicks Kesar Badam, Horlicks Savory Oats strengthens the company portfolio strengthens the company portfolio
  • Improved consumer access
  • India operations showing strong growth

Quarter - Jan – March 2014

  • Sales, PBT and PAT grew by 15%, 15% and 10% respectively.
  • Top line growth on the back of robust Access strategy that drives consumption in affordable prices
  • Science and innovation steers growth and performance

Overview________________________

GlaxoSmithKline Consumer Healthcare Limited today declared its audited financial results for the fifteen month period ended on March 31, 2014. Net Sales, PBT and PAT for the 15 month ended March 31, 2014 were Rs. 4,683 Crores, Rs. 1,016 Crores and Rs. 675 Crores respectively.

The Board of Directors of the Company also recommended a Dividend at the rate of Rs. 45 per equity share of Rs. 10 each for the 15 month period ended March 31, 2014.

Commenting on the results, Mr. Zubair Ahmed, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said, “We are delighted to deliver confident and industry affirming results, quarter on quarter. Our robust performance for the fifteen month period ending March 31, 2014 bears testament to our consistent focus on high science, market defining innovation, clutter breaking brand communication and integration of shopper insights in our sales initiatives. Along with growing the diversified business, we have maintained our focus on our access strategy and providing products that make our consumers do more, feel better and live longer.”

“In the coming months we will continue to make appropriate changes to our business including use of digital and social to interact and engage with our customers, create a culture of exceptional leaders and bring to our customers products based on high science and consumer insights. These will future proof the organization and help it deliver healthy growth for all stakeholders,” he added.

India Performance

For the duration of the results, the company has yielded an impressive sales and profitability due to sustained focus on leveraging science to develop relevant products, increase penetration across categories and cost optimization drive.

Performance Highlights

  • Growth has been consistent with all regions and all categories
  • Rural business grew on the back of coverage expansion as well as strong activation
  • Modern Trade has delivered prominent growth in Q5
  • Innovative techniques and integration of science has helped in building a strong product pipeline
  • Insight based communication for increasing relevance for the end consumer
  • Distribution and trade channel contact programmes ensured prominent results across geographies

Health Food Drinks

  • Health drink portfolio continues to be a market leader with 57.5% (Value sales) and 64.8% (Volume share) – (MAT March, 2014). Its closest competitor have market share of 14.5% (Value Market Share) and 16.5 % (Volume Market Share) – (MAT March, 14).
  • Three innovative products were launched between Jan 2013 and March 2014
  • Horlicks Kesar Badam achieved high in-store visibility and high distribution
  • Women’s Horlicks continued to deliver well through its communication around bone health
  • Lite Horlicks created high impact visibility across South and East markets

Foods

  • Food business grew on the back of strong performance across North and West regions

About GlaxoSmithKline Consumer Healthcare Ltd

GSK Consumer Healthcare is a subsidiary of GlaxoSmithKline plc. of U.K, a global science based healthcare company. GSK Consumer Healthcare has continually benefited from the technical and marketing inputs that have been available as a consequence of this association. GSK Consumer Healthcare is the largest player in the health food drinks industry. The Company with its manufacturing plants located in Nabha, Rajahmundry and Sonepat has a total workforce of about 3500 people.

GSK Consumer Healthcare has a strong marketing and distribution network in India comprising over 700 distributors and a direct coverage of over 8 lakh retail outlets. Its flagship product, Horlicks, is a widely regarded and highly respected brand for over 100 years. GSK also manufactures and markets Boost, Viva and Maltova and in additional markets. GSK also distributes a number of products in diverse categories, which include prominent names such as Eno, Crocin and Iodex as well as products from the global portfolio like Parodontax and Sensodyne.

Media Contacts ______________________________________________________

Genesis Burson-Marsteller

Rikhil Seth: rikhil.seth@bm.com/ +91 9811818270

Sakshi Mathur: sakshi.mathur@bm.com/ +91 9999007585

Ekta Chauhan: ekta.chauhan@bm.com/ +91 9999380178

GlaxoSmithKline Consumer Healthcare

Deepa Dey : deepa.d.dey@gsk.com