GlaxoSmithKline Consumer Healthcare Ltd records 19% profit growth for FY 2015 - 2016

 

GlaxoSmithKline Consumer Healthcare Ltd records 19% profit growth for FY 2015 - 2016  

Board of Directors of the Company recommended a Dividend at the rate of Rs. 70 per equity share of Rs. 10 each for the 12 month period ended March 31, 2016.  

Overview

GlaxoSmithKline Consumer Healthcare Limited today declared its financial results for the fourth quarter and year ended March 31, 2016.The year witnessed an increase in gross sales by 4% to Rs. 4,516 crores while profits before tax grew by 19% to Rs. 1,055 crores compared to last year for the same period. The company maintained a double digit profitable growth for 11 consecutive years.

In the quarter gone-by GlaxoSmithKline Consumer Healthcare Limited recorded an underlying Profit before tax growth of 5% and Sales growth of 1.5% driven by strong growth of its flagship brand Horlicks. The company continued to gain market share for Health Food Drinks (HFD) both in value and volume; volume share is up by 1.4 % and is at 66.2%.

The reported net sales got impacted due to the phasing out of fiscal benefits at Baddi and one off accounting adjustments sitting in the base.

The Board of Directors of the Company recommended a Dividend at the rate of Rs. 70 per equity share of Rs. 10 each for the 12 month period ended March 31, 2016.

Commenting on the results, Manoj Kumar, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said, “Our focus on product innovation and customers has resulted in a strong year despite challenges.In this financial year we have recorded a profit growth of 19 %. This is reflective of our consumer’s continuing preference for our high science based products.”

“To further energise the category, we have brought various innovations to the market. Our outreach around ‘Food Science’ highlights the use of natural ingredients along with 23 vital nutrients, encouraging increase in daily consumption. The recently launched new and improved Horlicks is enriched with immunity building micro nutrients that support the body’s natural defence mechanism. In an industry first, in the month of May, we have also launched HorlicksGrowth+, an advanced nutrition product, backed by a clinical which focuses on the lost growth of a child. These initiatives will further strengthen our leadership position in the HFD category.” added Kumar

Performance Highlights

  1. Focus on Product innovation:

    1. The recently launched Horlicks is enriched with immunity building micro nutrientsand ensures that 2 cups of Horlicks everyday provides 100% RDA (Recommended Dietary Allowance) of all immunity nutrients. The new and improved Horlicks is enriched with seven immunity building micro-nutrients that support the body's natural defence mechanism

    2. In May, the company launched Horlicks Growth+, a premium product in the advanced nutrition segment. Horlicks Growth+ is also India’s first clinically proven health drink that focuses specifically on the lost growth (weight & height) amongst kids aged between 3-9 years

  2. Increasing consumption: Horlicks continued to drive daily consumption in its core markets of South & East through the “Food Science” campaign. The campaign reiterates the importance of giving Horlicks twice every day to a child; thereby help drive evening consumption
  3. Driving Access, enhancing reach: Strengthening our access agenda to drive penetration & consumption of our high science based products, we have launched a new Rs 10/- Horlicks & Boost pack
  4. Focussed Consumer Connect: Boost restage was launched with a new campaign with MS Dhoni - ‘Play the Bigger Game’ that single-mindedly aimed at ‘Driving Connect with Kids’

 

Health Food Drinks – Market share

  • Our health drink portfolio continues to be a market leader with 58.3% (Value share) and 66.2% (Volume share) – (MAT Mar, 2016)
  • Horlicks and Boost are among the top 3 HFD brands
  • Horlicks at 46.8% Value share and 52.9% Volume share(MAT Mar, 2016)
  • Boost at 11.1% Value share and 13.0% Volume share (MAT Mar, 2016)

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 3500 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

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

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

 

GlaxoSmithKline Consumer Healthcare

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