GlaxoSmithkline Consumer Healthcare Ltd on Monday reported a 16.6% drop in fiscal second quarter profit as sales from operations declined 1.3% during the period.
The company, which sells Horlicks and Boost health foods, reported net profit of Rs183.72 crore for the quarter ended 30 September, compared with a net profit of Rs220.34 crore a year earlier.
Net sales from operations fell to Rs1,135.60 crore during the quarter from Rs1,151.06 crore a year earlier.
“The reported net sales decline of 1.3% got impacted due to one-off accounting adjustment sitting in the base and impact of change in accounting standard (IndAS),” the company said in a statement.
GSK Consumer Healthcare said its market share in the health drinks segment increased by 0.6% during the quarter, while the category grew by 0.8% between January and September.
“Market share for GSK Consumer healthcare has grown in volume at 66.4% (up by 1 percentage point) and value at 58.3% (up by 0.5 percentage point),” it added.
The Indian unit of the British company cut its total advertising and promotion spending by 13.2% to Rs127.19 crore during the July-September quarter from Rs146.60 crore in the same period a year earlier.
“Despite the subdued demand in the FMCG (fast-moving consumer goods) sector, we have gained share in the health food drink category. We continue to improve consumer’s experience with new products like Horlicks Marie, our biggest launch in the foods category,” Manoj Kumar, managing director of GlaxoSmithKline Consumer Healthcare, said in the statement.
The company relaunched its Rs5 packs of base Horlicks and Boost during the quarter in a bid to arrest declining sales.
“Focus on science, innovation and customer, remains our key differentiator and helps us to stay ahead in the category. Our outlook for the upcoming quarter’s remains positive.” Kumar added.
The company announced its results after market hours. Shares of GlaxoSmithkline Consumer Healthcare dropped 1.95% to Rs5,750 on Monday on BSE, while the exchange’s benchmark Sensex rose 0.68% to 27,458.99 points.