GSK Q3 profit drops 8.25% due to note ban
GSK’s net profit fell to Rs136.41 crore in the quarter ended 31 December from Rs148.68 crore a year earlier
New Delhi: GlaxoSmithkline Consumer Healthcare Ltd, the maker of Horlicks and Boost health foods, on Monday reported 8.25% drop in third-quarter profit as the liquidity crunch following demonetisation hit wholesale trade.
Net profit fell to Rs136.41 crore in the quarter ended 31 December from Rs148.68 crore a year earlier. Net sales from operations fell 12.68% to Rs921.64 in the quarter from Rs1,055.57 crore a year earlier.
“The overall business environment during the quarter was challenging and uncertain due to demonetisation. This substantially impacted the cash dominated geographies, mainly the east and north, and channels—mainly wholesale and rural, resulting in lower consumption offtake and reduced trade pipelines,” said MD Manoj Kumar in a statement.
The British company’s local unit said it had extended credit terms to help trade fight the liquidity crunch due to note ban announced 8 November.
GSK Consumer Healthcare, citing market researcher Neilsen, said the marketshare of Horlicks increased marginally by 0.1% to 46.5% in value terms during the quarter from a year earlier.
The company, however, is hopeful about the coming quarters. “Our outlook for the upcoming quarters remains positive. We are confident that with improved liquidity position and focus on high science, strong brands, innovation and sharp customer insights will help us to stay ahead in the category,” said Kumar.
The company announced its results after market hours. Shares of GlaxoSmithkline Consumer Healthcare dropped 0.14% to Rs5,118 on Monday on BSE, while the benchmark Sensex rose 0.06% to 28,351.62 points.