MAM

Glaxosmithkline Consumer promotion expenses 19% of Oct-Dec Op Income

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/03/04/gsk.jpg?itok=0EJrSAzR

BENGALURU: Nutritional products and OTC drug major Glaxosmithkline Consumer Healthcare spent Rs 164.78 crore or 18.96 per cent of Income from operations in the quarter ended 31 December  towards advertisement and promotion. This was the highest amount spent on advertising and promotion by the company in terms of percentage of operating income as well as in value terms over seven consecutive quarters starting quarter ended 30 June, 2012.

Note : (1) GCHL’s fiscal ends on December 31, however in keeping with standard conventions in India, the following periods have been used in this report:

Q1-2013 is the Quarter ended June 30, 2012; Q2-2013 is the quarter ended September 30, 2012

Q2-2013 is the quarter ended December 31, 2012 ; Q4-2013 is the quarter ended March 31, 2013

Q1-2014 is the quarter ended June 30, 2013 ; Q2-2014 is the quarter ended September 30, 2013 and Q3-2014 is the quarter ended December 31, 2013.

(2)Rs 1 Crore  = Rs 100,00,000 = Rs 100 lakhs = 10 million

The company’s nutritional products brands include Horlicks, Boost, Foodles , while its OTC drugs brands include Crocin, Eno and Iodex.

Let us look at the company’s results over the seven quarters under consideration:

Figure A shows that Linear PAT as percentage of Op Inc is trending downwards. Ad Exp as both percentage of Op Inc and Total Expense (Total Exp) is trending upwards linearly. The company explains the lower PAT to high inflation in milk and milk powders and dilution in PAT growth due to higher tax rates. GHCL plans to partially offset this by renewed focus on various cost control initiatives.

However, as per Figure B below, in value terms, PAT trend is almost flat linearly over the seven quarters, with GCHL reporting maximum PAT in quarter ended 31 March 2013 at Rs 156.41 crore, the lowest being Rs 69.65 crore in Q3-2013. The company reported PAT at Rs 79.79 crore in Q3-2014. Operating Income peaked in quarter ended 30 September, 2013 at Rs 1014.08 crore, with Rs 734.51 crore in quarter ended 31 December 2012 being the lowest operating income over the seven quarters under consideration. Operating income in the quarter ended 31 December, 2013 was Rs 869 crore.

As mentioned above, the company’s Ad Exp in quarter ended 31 December, 2014 was the highest, both in terms of percentage of operating income and in rupee value. As figure C shows, the company’s q-o-q change in percentage terms for Op Inc as well as Ad Exp have been zigzag lines, however the linear rate of change tending downwards for both.

GCHL says that it has had a good overall performance with Health Food Drinks (HFD) and Foods growing at 17 per cent and 29 per cent respectively in quarter ended 31 December, 2014. Its domestic volume growth has been 11 per cent, while exports grew by 36 per cent. It claims that GHCL continues to hold second position in Oats; Horlicks Kesar Badam launched during the quarter.

The company claims that its HFD brands comprising Horlicks and Boost grew 17 per cent, while its packaged foods brands comprising of Horlicks biscuits, Horlicks Nutribics, Foodles (noodles), Horlicks Oats and Boost Biscuits grew 29 per cent during the period.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/intel_0.jpg?itok=FG-hC3Co
Intel CEO Brian Krzanich resigns over relationship with employee

Intel Corporation CEO and member of board of directors Brian Krzanich today announced his resignation for a breach of company policy involving a relationship with an employee.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/philli%5Bpe.jpg?itok=i_OqetJp
Louis Philippe launches new ad campaign #RiseAboveTheRest

One of India’s leading menswear brand Louis Philippe, from Aditya Birla Fashion and Retail, has come up with a unique ad campaign 'Rise Above The Rest', showcasing that true leadership is about taking decisions that leave a lasting impact.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Taco_Bell.jpg?itok=Z6U0LWrp
Taco Bell wants to make potato great again with new campaign

MUMBAI: Taco Bell is set to make its way into the hearts of potato lovers across India. The brand has just launched a unique potato centric take on the traditional taco. The all new Crispy Potaco will give this much-loved vegetable a new identity where it will no longer play the sidekick in most...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Hewlett-Packard.jpg?itok=WAfcwLQA
HP urges people to use original ink in new campaign

MUMBAI: Information technology company HP (Hewlett-Packard) has launched a digital film Chikloo, as a part of the on-going initiative to promote its original ink and cartridges.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Oyo_Rooms.jpg?itok=VkrFCVy8
Oyo expands footprint in China

MUMBAI: Indian budget hotel company Oyo Rooms has forayed into China to cater to the country’s burgeoning hospitality industry. Oyo Rooms. The Softbank-backed Oyo in China will have 11,000 exclusive-franchise or merchandised rooms across 26 cities. The service will be available in Xiamen, Kunming,...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/johnson.jpg?itok=DKeojJYF
Johnson's celebrates 125 years with new campaigns

American multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company, Johnson’s recently completed 125 years in the baby care products category in India.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/itc.jpg?itok=cX8Y1slV
Team ITC makes India proud ,Wins a Silver Lion at the Young Lions Marketers Competition at Cannes

Two young women managers from ITC made India proud by winning the Silver Lion at the very competitive & prestigious Young Lions Competition at Cannes. The team comprised Raisa Chakravarty and Anupama Sharma from ITC's Personal Care Products Business. They had earlier won the India Challenge....

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/walmart.jpg?itok=iUQSOmvw
Walmart sells $16 billion worth of bonds for Flipkart acquisition

American multinational retail corporation, Walmart, has decided to sell $16 billion worth of bonds to help finance its investment in Indian e-commerce giant Flipkart.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/Greenscape.jpg?itok=PAtWgjGE
Greenscape gets insects to tweet & spread awareness about e-waste

MUMBAI: Most people dump their e-waste just like their regular waste. This results in e-waste ending up in dump yards and landfills. To discourage people from doing this, Greenscape, India’s leading IT waste disposition company, joined hands with Dentsu Webchutney to launch #TinyBugsTweet campaign...

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories