GSK Consumer profit rises 19.97% to Rs163.66 crore
New Delhi: GlaxoSmithkline Consumer Healthcare Ltd, the maker of Horlicks and Boost nutritional supplements, on Monday reported a 19.97% increase in profit for the quarter ended 31 December from a year earlier.
Net profit for the quarter under review rose to Rs163.66 crore from Rs136.41 crore in the year-ago period.
The company’s revenue from operations rose to Rs1,034.67 crore in quarter ended 31 December 2017, up 7.75% from Rs960.17 crore reported in the corresponding year-ago period. “The comparable revenue for the company recorded a growth of 19% on the back of a strong performance by Base Horlicks and Boost across regions,” the company said in a statement.
The company’s estimated revenue growth is higher on comparable basis as there has been a change in accounting. Levy of excise duty, octroi, non-cenvatable service tax etc. were treated as part of the cost earlier, but after implementation of goods and services tax (GST) from 1 July 2017 the new uniform tax is not treated as cost.
During the quarter, the company’s staff cost rose by 25.2% and it spent 21.8% more money on advertising and promotions as compared with the year-ago quarter.
“We are confident that domestic consumer demand led by a revival in rural markets owing to the government’s strong focus on rural development and higher spending on health and nutrition will create positive momentum for the sector. Given our strong commitment to high science, investments behind our brands combined with continued innovation and sharp customer insights, we are confident that we will grow ahead of the market in the quarters to come,” Navneet Saluja, managing director, GlaxoSmithKline Consumer Healthcare said in a statement.
According to the company, its health drink portfolio dominated the market with 55.7% value share till December.
On Monday, shares of GSK Consumer Healthcare fell 1.36% to close at Rs5,980.15 on BSE while the exchange’s benchmark Sensex rose 0.87% to 34,300.47 points. The company earnings were released after trading hours.