New Delhi: GlaxoSmithKline (GSK) Consumer Healthcare Ltd on Friday reported a 2.9% growth in net profit at Rs.160.61 crore in the quarter ended 30 June as sales dipped by 1.6% to Rs.1,002.61 crore. Net profit for the year-ago quarter was Rs.156.05 crore and sales Rs.1,019.26 crore.
The company’s single-largest revenue contributor Horlicks, a health food drink, grew by just 2% during the April-June quarter. “Domestic consumption for health food drink (HFD) for the quarter remained flat,” the company said.
GSK, however, claimed that the market share for GSK’s health food drinks has grown to 66.6% in volume (up by 1.4%) and to 58.5% in value (up by 0.7%).
“The FMCG sector has been battling macroeconomic challenges resulting in lower consumption. However, we remain the market leader in HFD, growing two times the category. Our access strategy is core to our business and has been powered through the launch of Rs.10 sachets of Horlicks and Boost. We continue to remain bullish on our innovation agenda,” said Manoj Kumar, managing director, GSK Consumer Healthcare.
During the quarter, the company spent more money in advertising and promotions (A&P). Its A&P cost for the quarter rose by 3.6% to Rs.121.55 crore.
“Our brand connect has been strengthened through deep insights-based communication which we believe will drive further consumption and trials in future. With the onset of monsoon and the announcement of the seventh pay commission, our outlook remains optimistic for both urban and rural India,” Kumar said.
Shares of GSK Consumer Healthcare closed 2.74% lower at Rs.6,180.80 apiece on BSE, while the Sensex closed 1.31% higher at 28,078.35.