GlaxoSmithKline (GSK) Consumer Healthcare, a subsidiary of GlaxoSmithKline plc. of U.K, a global science based healthcare company and the largest player in the health food drinks industry declared its financial results for the first quarter ended June 30, 2014 on August 6. Net sales at Rs 922 crore recorded a growth of 8% over 2013 with Profit After Tax at Rs 130 crores growing by 9% for the same period and Profit Before Tax at Rs 198 crore growing by 9%.
Commenting on the results, Zubair Ahmed, Managing Director, GlaxoSmithKline Consumer Healthcare said, “We are proud to deliver consistent growth ahead of the category. This is significant in a scenario where consumption pattern is being impacted by inflation. Our sciences based products with its superior value, continue to remain relevant for our large consumer base. As a market leader we are also growing the category with successful launches of new products which are driving up consumption experiences. Our focused access strategy ensures that consumption and penetration has been the enabler for growth. Customer driven innovations and clutter breaking marketing based on sharp consumer insights will continue to be our driving force in the coming months to bring in more consumers closer to the product.”
Performance Highlights
• Growth has been consistent in all categories at an all-India level led by West Region
• Rural business grew on the back of coverage expansion as well as strong activation
• Modern Trade is growing double digit as per plan
• Innovative techniques and integration of science has helped in expanding coverage and building a strong product pipeline
• Insight based communication for increasing relevance for the end consumer
Health Food Drinks
• Health drink portfolio continues to be a market leader with 57.5% (Value share) and 65.1% (Volume share) – (MAT June, 2014).
Foods
• Food business delivered strong performance across North and West regions
• Horlicks Oats grew in markets across all regions
• Horlicks Biscuits continues to be the market leader in the milk biscuits segment in East
GSK Consumer Healthcare is the largest player in the health food drinks industry. The company with its manufacturing plants located in Nabha, Rajahmundry and Sonepat has a total workforce of about 3500 people. The company has a strong marketing and distribution network in India comprising over 700 distributors and a direct coverage of over 8 lakh retail outlets. Its flagship product, Horlicks, is a widely regarded and respected brand for over 100 years. GSK also manufactures and markets Boost, Viva and Maltova and in additional markets. GSK also distributes a number of products in diverse categories, which include prominent names such as Eno, Crocin and Iodex as well as products from the global portfolio like Parodontax and Sensodyne.