GlaxoSmithKline Consumer Healthcare Limited announces results for the first quarter ended June 30 2016

GlaxoSmithKline Consumer Healthcare Limitedannounces results for the first quarter ended June 30 2016

 

Highlights for the first quarter ended June 30, 2016

  • Profit before tax (PBT) for the quarter up by 3%
  • YTD June volume market share is at 66.6% (up by 1.4%) & value market share is at 58.5% (up by 0.7%)*
  • GSKCH is growing 2 times the HFD category*
  • Company moves to the new accounting standards – Ind AS, effective 1st April 2016

Overview

GlaxoSmithKline Consumer Healthcare Limitedtoday declared its financial results for the first quarter ended June 30, 2016. Sales at Rs 1,003 crores recorded a decline of 1.6% with PAT at Rs. 161 crores growing by 3% for the same period and PBT at Rs 248 crores growing by 3%. The company also moved to the new accounting standard – Ind AS where all salesincentives, discounts, etc. is netted from sales which was earlier reported under Advertising & Promotion while Excise duty is reported as expense which was earlier netted from Sales.

Domestic consumption for HFD for the quarter remained flat, mainly driven by 2% growth in Horlicks. The HFD category grew at 1.1 % value during Jan – June ’16, led by GSKCH +2.2 %. Market share for GSK Consumer healthcare has grown in volume at 66.6% (up by 1.4%) & value at 58.5% (up by 0.7%).

In a statement, Manoj Kumar, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said, “The FMCG sector has been battling macroeconomic challenges resulting in lower consumption. However, we remain the market leader in HFD, growing 2x times the category. Our access strategy is core to our business and has been powered through the launch of Rs. 10/- sachet of Horlicks and Boost. We continue to remain bullish on our innovation agenda.”  

“Our brand connect has been strengthened through deep insights based communication which we believe will drive further consumption and trials in future. With the onset of monsoon and the announcement of seventh pay commission, our outlook remains optimistic for both urban and rural India.” added Kumar.

Product innovation in Q1:

Horlicks Immunity restage: (Launched April’16) The improved Horlicks comes with new claim of 2X Immuno Nutrients (immunity building micro nutrients) that supports the body’s natural defense mechanism and builds immunity for kids. It has increased key immunity nutrients (Vitamin D and Selenium) by two times to ensure that 2 cups everyday provide 100% RDA of immunity nutrients.

Boost restage: (Launched March 2016) Boost underwent a revamp with a completely new & re-energized pack design, new consumer and shopper communication. This was in line with the brand’s philosophy of being loved by kids, remaining contemporary and trend setting with its clutter-breaking packaging. A new core TG insight based TV commercial featuring MS Dhoni showcased how Boost helps to unleash the winner in the kid.

Horlicks Growth+: (Launched June 2016) Horlicks Growth+ is company’s foray in the premiumised and advanced nutrition category. This is break-through nutrition formula designed by international pediatric experts, contains high quality protein with added nutrients which are known to support ‘catch up’ growth in children. Targeted towards 3-9 year old children who are short or lean [less weight] for their age.

*As per AC Neilson

About GlaxoSmithKline Consumer Healthcare Ltd

GSK Consumer Healthcare Ltd is the category leader in Indian health food drinks industry. Our flagship product Horlicks leads the market, while Boost is among the top three health food drink brands that India prefers. Our manufacturing plants are located in Nabha, Rajahmundry and Sonepat. In India we have an engaged workforce of over 4000 employees. GSK also markets and distributes a range of everyday health products such as Eno, Crocin, Iodex and Sensodyne. Our marketing and distribution network comprises over 700 distributors and a direct coverage of over 8 lakh retail outlets.

GSK Consumer Healthcare Ltd is an associate of GlaxoSmithKline plc.of U.K, one of world’s largest consumer healthcare companies. We have a heritage that goes back over 160 years. Our purpose is to help more people around the world to do more, feel better and live longer with everyday healthcare products.  Our goal is to build a global, growing business - we call a Fast Moving Consumer Healthcare (FMCH) company - dedicated to everyday healthcare with all of the scientific expertise and quality guarantees that demands, working at the speed and with the genuine consumer understanding the modern world expects.

GSK Consumer Healthcare globally owns some of the world’s best loved healthcare brands, successful in over 100 countries. These include Sensodyne, Voltaren, Theraflu, Paradontax, Panadol, Polident, Otrivin, Horlicks and Physiogel.

 

Media Contacts

Genesis Burson-Marsteller

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

M Sindhu: m.sindhu@bm.com /+91 9899428304

GlaxoSmithKline Consumer Healthcare

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

Kinshuk Gupta: kinshuk.x.gupta@gsk.com