GSK Consumer posts 15% higher profit in Q4 on account of lower material costs

Net sales increased 8% to Rs 1,165 cr

GSK Consumer Healthcare (GSK-CH) has managed to post 14.6% growth in net profit, on a year on year basis, at Rs 197 crore for the quarter ending 31st march, 2015 by cutting down its expenses. It posted Rs 172 crore net profit in fourth quarter last year. The company’s net sales grew 8% to Rs 1,165 crore from Rs 1,080 crore last year.

The consumer goods manufacturer managed to grow its net earnings more than its sales, during in the quarter, despite a 40% rise in its employee benefits due to lower raw material costs and purchase of stock in trade. During the period GSK-CH’s material costs went down by some 4.7% compared to same quarter FY2014. According to the company, sales growth in the quarter was driven by better “market penetration, greater access to products and cost efficiency”.

Zubair Ahmed, managing director, GlaxoSmithKline Consumer Healthcare said: “We are proud to be one of the few companies in the FMCG sector to register strong growth every quarter. Robust financial performance comes on the back of our relentless focus on products that are differentiated by high science and innovation and are propelled through our robust distribution in urban and rural markets”.

For the FY2015, GSK-CH’s net revenue stands at Rs 4,136 crore and its net profits was Rs 584 crore. The company’s corresponding figures for the previous year is not available. According to GSK-CH, the “base Horlicks and Women’s Horlicks built the positive growth momentum” during FY2015 “despite market slowdown”.