Board of Directors of the Company recommended a Dividend at the rate of Rs. 105 per equity share for the 12 months period ended March 31, 2019
GlaxoSmithKline Consumer Healthcare Limited declared its financial results for the fourth quarter and full year ended March 31, 2019. The Revenue for the company recorded a growth of 9%. The quarter reported revenue of Rs. 1,286 crores, while the PBT is at Rs. 426 crores, which is an increase of 34% compared to last quarter. The quarter also witnessed a volume growth at 6.5%. For the full year, the revenue is Rs. 4,782 crores which are an increase by 9.3% (Comparable* revenue growth of 12%) and the PBT is at Rs. 1,512 crores, which is an increase by 41% compared to last year.
The Board of Directors of the Company recommended a Dividend at the rate of Rs. 105 per equity share of Rs. 10 each for the year ended March 31, 2019.
Commenting on the results, Navneet Saluja, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said, “I am extremely satisfied with the consistent growth that we witnessed in this financial year, especially on Volume growth in our health drinks portfolio and the share gain achieved by our lead brand Horlicks. In the last quarter, we successfully carried out exciting unique initiatives like the Boost Sports Meet and Horlicks Exam Time. These initiatives, along with our unflinching commitment towards innovation have significantly strengthened our position in the high-science range and will further reinforce our leadership in the HFD category.”
“Another highlight has been our rural coverage, which has increased to 24,000 villages through Rural sub-distributors and Village Level Entrepreneurs (VLE’s) across the 9 States where we operate. As a company, we will continue to drive the nutrition agenda for the country through various initiatives like ‘Horlicks Swasthya Abhiyan’, which are also in line with Government’s National Nutrition Mission,” Mr. Saluja added.
*Comparable: Reflecting the accounting impact of GST (Excise and other tax costs under an earlier regime, now subsumed under GST and netted from Turnover in base)
Performance Highlights:
- Health food drink portfolio continues to be the market leader with a 63.8% volume share**
- HFD distribution stood at 1.96 MN outlets in Q4’18-19 as against 1.77 MN outlets in Q4’17-18 which is a growth of 10.6% in GSK reach
- Base Horlicks has led the category with strong volume growth; key initiatives like Horlicks Exam Time and integrated campaigns for Junior Horlicks & Women’s Horlicks contributed to the growth
- Horlicks Swasthya Abhiyan was extended to newer villages, covering a total of 7000 villages including rural markets
- Boost Sports Meet’ reached a 1000 villages and schools in AP, driving the message of structured play at schools and bringing alive the winning spirit in kids
Update on strategic review:
- On 03 December 2018, the company announced the divestment of Horlicks and other consumer healthcare nutrition brands to Unilever plc (“Unilever”) and the merger of GSK Consumer Healthcare Limited (“GSK India”) with Hindustan Unilever Limited (“HUL”)
- On 23 January 2019, the merger deal with Hindustan Unilever Limited (HUL) was approved by the Competition Commission of India (CCI)
- Subsequent to the approval from CCI, we have received a ‘No Objection letter’ from the stock exchange on 18 February 2019
- The Scheme of Amalgamation with respective National Company Law Tribunals has been filed at Mumbai and Chandigarh
- The merger is now subject to the receipt of other requisite statutory and regulatory approvals under applicable laws
- The merger process is moving along expected timelines