GSK Consumer net surges on key brand sales

CORPORATE SCORECARD

Backed by strong double digit growth for its flagship brands Horlicks and Boost, GlaxoSmithKline Consumer Healthcare reported a growth of 36.9 per cent in net profit for the April-June 2007 quarter.

It reported a net profit of Rs 42.3 crore compared with Rs 30.9 crore in the corresponding quarter last year. In the forthcoming quarters, the company indicated that it was open to an acquisition-led growth strategy.

Net sales was Rs 315.6 crore, which marked a rise of 17.76 per cent, compared with Rs 268 crore in the corresponding previous quarter.

The company's double digit sales growth has been attributed to its aggressive sales strategy.

"GSKCH's single minded focus this quarter and largely this year remains on profitable top line growth. The company expects its brands such as Horlicks and Boost to lead the growth and we will continue to invest aggressively in these brands. India is also a high potential market and as announced earlier, our programme of targeted acquisitions of nutritional brands remains firmly on track," said Zubair Ahmed, managing director, GlaxoSmithKline Consumer Healthcare.

"Our investments in our manufacturing plants, new R&D projects, product innovations add to the thrust of strengthening our position as a key FMCG company," he added.

The company's flagship brands grew 18 per cent in value terms. Its Chocolate Horlicks drove the performance with a large scale sampling and an excellent tie-up with Hollywood movie Spiderman-3.

The relaunch of Horlicks Lite in February witnessed a resurgence of the brand and Junior Horlicks' secondary sales also did well.

The other key brand, Boost, ended the quarter with a 20 per cent volume growth.