GSK Consumer profit drops 17.5% to Rs132.23 crore
New Delhi: GlaxoSmithkline Consumer Healthcare Ltd, the maker of Horlicks and Boost health foods, on Tuesday reported a 17.5% drop in net profit for the quarter ended 30 June 2017 as sales dipped by 1.3%.
The dip in sales, according to the company’s statement, was “mainly on account of CSD (Canteen Store Department) consumption loss and destocking of wholesale channels as trade sentiments remained cautious due to Goods and Services Tax (GST) implementation”.
“This led to softer consumption and reduced trade pipelines, yet, the company managed to remain the market leader in the health food drinks category,” it added.
Net profit dropped to Rs132.23 crore in the quarter ended 30 June from Rs160.61 crore a year earlier. Net sales from operations fell to Rs1,045.88 crore in the quarter from Rs1,059.38 crore a year earlier.
“The overall business environment remained tepid during the quarter largely on the account of destocking of goods in wholesale channels and CSD consumption loss ahead of GST implementation. We continue to drive brand building initiatives through stepped up investments in our brands, innovations and consumer-connect activities. With good predicted monsoons, we are optimistic about the coming quarters,” Manoj Kumar, managing director, GSK Consumer Healthcare said in a statement.