The rise in net profit was driven by cost-cutting and expansion to new locations across India
New Delhi February 6, 2014:- GlaxoSmithKline Consumer Healthcare Ltd reported a 15% rise in net profit to Rs.80 crore for Q4 compared with the year-ago period, driven by cost-cutting and expansion to new locations across India. Net sales of the maker of Horlicks and Boost health drinks grew 18% to Rs.839 crore compared with a year ago.
“The increase in sales has been achieved through our continuous commitment towards science and innovation, which keeps our product portfolio relevant to changing consumer needs,” managing director Zubair Ahmed said in a statement.
The company’s distribution strategy ensured that its products are available in urban and rural markets in convenient and affordable pack sizes, Ahmed said.
The firm now sells its products in 10,000 villages, a milestone it achieved in the three months ended December through a two-year-old expansion drive.
The health food and drinks segment posted a strong growth of 17% in the December quarter, while the packaged food business grew 29% over the year-ago period, the company said.
An analyst said the results were in line with his expectations. “I expect the company to maintain 8-10% volume growth,” said V. Srinivasan, research analyst of consumer goods at brokerage firm Angel Broking Pvt. Ltd. “There are no major challenges for the company as it has been performing better than its competitors.”
Share prices of GlaxoSmithKline Consumer Healthcare on Wednesday grew 1.28% on the BSE to end the day at Rs.4,356.40. The benchmark index Sensex was up 0.24% at 20,261.03 points.- Livemint
