GSK Consumer Q4 net drops 8.2% to Rs 181 cr

Net sales declined 9.6% to Rs 1,053 cr

Consumer goods major GSK Consumer Health care posted Rs 181 crore net profit during the quarter ended March 31, compared to Rs 197 crore during the same quarter last year. Its profit fell by 8.2 percent as sales plunged.

GSK's net sales stood at Rs 1,053 crore - 9.6 percent lower y-o-y. Its net sales was Rs 1,165 crore in January-March, 2015 quarter. GSK's net sales impacted due to phasing out fiscal benefits in its Baddi plant.

"GSK Consumer results were lower than our estimates on all fronts. In 2016-17, sales and profit are expected to be better in terms of growth as price growth will start to come back. Revival of demand in the rural areas driven by rural initiatives and forecast of a good monsoon will augment that. However Q1FY17 can see some impact due to severe drought situation in the rural areas of Maharashtra, AP etc," Abneesh Roy, Institutional Equities - Research Analyst, Edelweiss Securities observed.

 

During 2015-16, GSK's net profit grew 17.7 percent to Rs 687 crore from Rs 584 crore. Net sales, however, fell marginally to Rs 4,106.6 crore from Rs 4,136.4 crore in 2014-15.

Manoj Kumar, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said: "Our focus on product innovation and customers has resulted in a strong year despite challenges. In this financial year we have recorded a profit growth of 19%."