GlaxoSmithkline Consumer Healthcare Ltd's Q4FY18 standalone net profit rises 20.4% yoy to Rs211.8cr : Beats Estimates

The company’s standalone revenue stood at Rs1,179.6cr, up 7.0% yoy and 13.6% qoq.

May 11, 2018 01:05 IST India Infoline Research Team

GlaxoSmithkline Consumer Healthcare Ltd Q4FY18

Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,179.6 7.0
EBITDA 250.0 14.7
EBITDA Margin (%) 21.2 143
Net Profit (adjusted) 211.8 20.4
***EBITDA margin change is bps


Reco. Price


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GSK Consumer reported healthy numbers with strong bottom-line growth, ahead of consensus estimates. Revenue for the quarter (net of excise duty in base quarter) grew by 7% yoy to Rs1,179.6cr, in-line with the estimates. On account of low input costs, the gross margin of the company expanded by 245bps yoy. EBITDA for the company grew by 14.7% yoy to Rs250.0cr and EBITDA margin expanded by 143bps yoy to 21.2%. Aided by EBITDA margin expansion, lower depreciation cost and higher other income, PAT grew by 20.4% yoy to Rs211.8cr, ~8% higher than the estimates.
  • Volume growth for the quarter was ~8% yoy in both Horlicks and Boost portfolio. This growth is driven by rural improvement, company’s aggressive promotional/campaigning strategies towards brand building initiatives.
  • Post GST, as the rate was revised lower for the company’s portfolios (from 28% to 18%), company has taken price reduction in November 2018. However, the competition has not undertaken any price cut.
  • The newly launched protein products are doing well for the company has already gained 0.4% market share in two months.
  • Sachets volume for the company continued to grow in high double digit, led by visible distribution & strong on-air support.
  • Company benefitted from lower input cost and hence, gross margin expanded by 245bps.
  • Advertisement expense as percent of net sales declined by 139bps yoy to 14.3%. However, employee expense as percent of net sales was up by 239bps yoy to 11.7%.
  • Depreciation for the quarter was down by 17.9% yoy.
  • Other income was up by 20.2% to Rs84.2cr.
  • Market share for Horlicks (including extensions) stood at 55.9% and for Boost stood at 11.2%.
  • No clarity on the strategic review by the parent for the sale of Horlicks globally. Management indicated that the clarity would come only at the end of the year.
  • Company has recommended a dividend of Rs75 per equity share of Rs10 each. 

Technical View:

GlaxoSmithkline Consumer Healthcare Ltd is currently trading at Rs. 5,932, up by 58.9 points or 1% from its previous closing of Rs. 5,873.10 on the BSE.
The scrip opened at Rs. 5,878 and has touched a high and low of Rs. 5,962 and Rs. 5,855 respectively. So far 33,129 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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