GlaxoSmithKline Consumer Healthcare sales up by 16.5%, Nabha, April 30, 2004

GlaxoSmithKline Consumer Healthcare sales up by 16.5%

Nabha, April 30, 2004

GlaxoSmithKline Consumer Healthcare Limited (GSKCH), a global nutritional healthcare company present in India since 1958, today declared its financial results for the three months ended 31 March 2004. The Company's sales increased year on year by 16.5 % for the three months ended March 2004 and Profit before tax increased by 10.6%.

Innovation behind the two flagship brands, Horlicks and Boost, created strong topline growth in the first quarter, enabling GSKCH to retain its clear leadership position in the Health Food Drinks category. "It is encouraging to see such buoyant sales, especially since the overall FMCG sector remains somewhat sluggish", said Nick Massey, Managing Director, GlaxoSmithKline Consumer Healthcare. "We will continue to ensure that our business evolves to meet the changing requirements of today's customer."

The company's profit performance reflects the decision not to pass on to consumers the adverse impact of higher milk input costs. "The sharp increase in milk prices across the last 6 months or so has taken everyone by surprise" said Nick Massey. "We have not increased our consumer prices since we envisage that the current abnormal situation will stabilise. At a time when we are investing in building our volumes, we feel that this is the right decision. We are confident that this is in the long term interest of our various stakeholders". The company is also engaged in an aggressive cost control program.

While Profit Before Tax stood at Rs. 30.09 crore (against Rs. 27.20 crore in Q1 2003), Profit After Taxation was Rs. 19.51 crore (against Rs. 18.17 crore in Q1 2003) representing an increase of 10.6 % and 7.4 % respectively.

About GlaxoSmithKline Consumer Healthcare Ltd.

GSKCH, which was established in 1958, is an associate of GlaxoSmithKline plc. of the U.K, a global science based healthcare company. GSKCH has continually benefited from the technical and marketing inputs that have been available as a consequence of this association. GSKCH is one of the largest players in the health food drinks industry. The Company with its manufacturing plants located in Nabha, Rajahmundry and Sonepat has a total workforce of about 2700 people.

GSKCH has a strong marketing and distribution network in India comprising over 1800 wholesalers and direct coverage of over 4,50,000 retail outlets. Its flagship products, Horlicks and Boost are widely regarded and highly respected brands. The Company in addition markets and distributes a large number of products in diverse categories, which include prominent household names such as Eno, Crocin and Iodex.