GlaxoSmithKline Consumer Healthcare Limited
Financial Results Q1, FY14-15
Quarter Highlights
2
Extremely challenging cost environment
• Unprecedented inflation in milk / milk powders
• Various initiatives on cost mitigation / pricing being taken to mitigate cost increases
Domestic Sales growth @ 10%
• Drop in export sales due to certain one-offs and slowdown in Bangladesh
• Good performance in domestic market despite extremely challenging environment
• Strong innovation led re-launches…Mother’s Horlicks, Horlicks Lite and Chocolate
Horlicks re-launched during the quarter
• Significant gains in HFD & Oats MS, Horlicks Oats continues to rank 2nd in South India
PBT and PAT grow by 9% during the quarter
Sustained investments in brands, A&P @ 15% of Sales…
• New impactful campaigns on Mother’s Horlicks and Chocolate Horlicks
• Added focus on Digital Marketing…
2 Analyst PPT
120
130
Q2 FY13-14 Q 1 FY14-15
PAT
182
198
Q2 FY13-14 Q 1 FY14-15
PBT
853
922
Q2 FY13-14 Q 1 FY14-15
Sales (Net)
905
974
Q2 FY13-14 Q 1 FY14-15
Sales (Gross)
Rs in crs
Financial Performance*
Analyst PPT
*Sales and profit growth v/s quarter ending June 2013
Brand Performance (Domestic) – Q1’ FY14-15
Base Brands Foods
Regional Split
% share to total sales Analyst PPT
94%
6%
Domestic Exports
6%
47%36%
4% 6%
North South East West Exports
24% drop in export sales FTQ due to certain one-offs and slowdown in Bangladesh
Marketing Initiatives…New Campaigns
Instant Chocolate Horlicks
Mother’s Horlicks
Click on image to play
Q1 FY14-15 – Sales performance
Price Volume Total
Good performance in HFD despite highest slump in Category growth in last 6 quarters; 120 bps increase in Volume MS FTQ
Strong performance in Oats, 410 bps increase in Volume MS FTQ
Source: AC Nielsen
Domestic Trade
CSD
Domestic Total
4% 7% 11%
3% 7% 10%
3% 7% 10%
24% drop in Export sales
THANK YOU