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

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