GlaxoSmithKline Consumer Healthcare (GSKCH), the maker of popular health drinks Horlicks and Boost, on Thursday reported a 5.7 per cent year-on-year (YoY) rise in profit before tax (PBT) in the July-September quarter. The firm’s PBT rose to Rs 451.8 crore from Rs 427.4 crore, as benign raw material prices kept its expenses at check.
GlaxoSmithKline Consumer’s revenue from operations remained muted with 5.7 per cent YoY growth. It has reported Rs 1,345 crore revenue in the last quarter, compared to Rs 1,272 crore a year-ago period.
According to the company, its domestic business grew 7 per cent, backed by Horlicks’ and Boost’s performance. While the newly launched Horlicks Protein gained momentum in the market, its health food drink portfolio, which leads the market, gained more volume share. Its volume share stood at 65.7 per cent while clocked 55.4 per cent market share by value.
“Boost and Horlicks continue to gain significant shares on the back of a strong execution strategy that witnessed an increase in distribution reach to 2.05 million outlets. We continue to drive brand building initiatives through stepped up investments in our brands, innovations and consumer-connect activities,” said Navneet Saluja, managing director at GSKCH.
Last quarter’s performance came amid a transformation that GSKCH is undergoing. Horlicks, the largest brand in its portfolio contributing over 80 per cent of its annual sales, is being sold. In December last year, GlaxoSmithKline announced the divestment of Horlicks and other consumer health care nutrition brands to Unilever and the merger of GSKCH with Hindustan Unilever. After securing approvals from the Competition Commission of India and the National Company Law Tribunal, the merger is awaiting further statutory and regulatory approvals.