GlaxoSmithKline Consumer Healthcare Limited announces results for the third quarter ended December 31, 2019

GlaxoSmithKline Consumer Healthcare Limited announces results for the third quarter ended December 31, 2019 

Revenue growth at 4%, PBT growth at 6% and PAT growth at 25%

 

Gurugram, 06 February 2020: GlaxoSmithKline Consumer Healthcare Limited, today declared its financial results for the third quarter ended December 31, 2019. The company delivered a strong quarter with 4% revenue growth and 6% PBT growth. The quarter reported revenue of Rs. 1,159 crores, while the PBT is at Rs. 367 crores.   

Commenting on the results, Navneet Saluja, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said, “We have witnessed sustainable growth since the past few quarters and are happy with the performance in Q3. Domestic HFD business grew at 6% with strong performance of Horlicks and Boost. Other operating income consistently grew at double digit on the back of strong performance of the marketed and distributed brands like Eno, Sensodyne, Crocin, Iodex & Otrivin. It has been a milestone quarter for us, as we achieved the highest ever distribution reach, adding approximately 0.22 MN outlets compared to same period last year. With our focus on delivering high-science products based on strong consumer insight, this year witnessed the successful launches of Horlicks Protein+ (Vanilla) and Active Horlicks.” 

“Our flagship program- Horlicks Swasthya Abhiyan has extended to newer villages and now reaches to a total of 8,600 villages. We further expanded our rural reach through a unique Home to Home channel that employs 9,500 rural women entrepreneurs. Despite the current downturn in the economy, we are optimistic that concentrated efforts by the government will help boost consumption and revive demand in the market.” 

Performance Highlights:

  • Health food drink portfolio continues to be the market leader with 67.0% volume share and 56.0% value share
  • Direct rural reach is at 22,770 villages, backed by a concerted effort on reach expansion and consumer facing, demand generation programs.
  • HFD Distribution stood at 2.1 MN outlets showing a 12% growth
    • Boost Sachets have achieved the highest ever distribution at 0.86 MN outlets

 Update on strategic review:

  • On 03 December 2018, the company announced the divestment of Horlicks and other consumer healthcare nutrition brands to Unilever plc (“Unilever”) and the merger of GSK Consumer Healthcare Limited (“GSK India”) with Hindustan Unilever Limited (“HUL”)
  • On 23 January 2019, the merger deal with Hindustan Unilever Limited (HUL) was approved by the Competition Commission of India (CCI)
  • Subsequent to the approval from CCI, we have received a ‘No Objection letter’ from the stock exchange on 18 February 2019
  • The order from the Mumbai branch of the NCLT was received by HUL on 06 November 2019.
  • The Chandigarh Bench of National Company Law Tribunal (NCLT) at its hearing held on 03 February 2020 has reserved its order on the Scheme of Amalgamation between Hindustan Unilever Limited (HUL) and GlaxoSmithKline Consumer Healthcare Limited (GSK CH).
  • We are now awaiting the formal order and once we receive it, other procedural formalities for the merger will be completed.
  • Till the process is completed, HUL and GSK will continue to operate as separate entities in the market

 

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 3800 employees. GSK also markets and distributes a range of everyday health products such as Eno, Crocin, Iodex and Sensodyne. Our marketing and distribution network comprise over 800 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, Theraflu, Paradontax, Panadol, Polident, Otrivin, Horlicks and Physiogel.