GlaxoSmithKline Consumer Healthcare Limited announces results for the first quarter ended June 30, 2019

GlaxoSmithKline Consumer Healthcare Limited, today declared its financial results for the first quarter ended June 30, 2019. The Revenue for the company recorded a growth of 8%. The quarter reported revenue of Rs. 1,194 crores, while the PBT is at Rs. 386 crores, which is an increase by 24% compared to last quarter. 

Commenting on the results, Navneet Saluja, Managing Director, GlaxoSmithKline Consumer Healthcare Limited said, “We registered a strong performance in the first quarter, in line with our business plans. We continue to lead the HFD category, with the quarter witnessing market share gains in both value and volume. As a company, we remain bullish on our innovation agenda and have brought to market two new products including Horlicks Active and Boost Bites biscuits. These have been well received by consumers and are showing strong uptake in the market.”

“Our brands have successfully connected and engaged with consumers via sharp insight-based communication and science-based innovations that has helped grow both consumption and penetration. With the onset of a good monsoon and with Government’s strong focus on rural India, our outlook for the coming quarters remains positive” added Saluja.

Performance Highlights:

Health food drink portfolio continues to be the market leader with 66.1% volume share

Strong performance by Horlicks and Boost that witnessed 5% growth

Achieved highest ever distribution in the last 5 years, adding 0.23 mn outlets

Horlicks Swasthya Abhiyan was extended to newer villages, covering a total of 8000 villages including rural markets

 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(“NCLT”) has been filed at Mumbai and Chandigarh

Pursuant to the order passed by the NCLT, the company convened meetings with the Equity Shareholders and Unsecured Creditors where the resolution for the scheme was approved with requisite majority. The Company has now filed the requisite Company Scheme Petition seeking sanction of the NCLT.

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