GLAXO reports 37% increase in half-yearly profits

August 23, 2021 (MLN): Glaxo SmithKline Pakistan Limited (GLAXO) has posted a 37% YoY increase in net profits to Rs1.7bn for the half-year ended on June 2021 compared to the profits of Rs1.24bn in the corresponding period last year.

The earnings per share of the company also jumped by the same percent from Rs3.9 per share to Rs5.35 per share.

During the period company saw a slight 6% increase in its turnover mainly due to supply-side issues and lower intercompany sales in 1Q2021.

The gross profit during the period was recorded at Rs4.25bn, reflecting a GP of 25.4% compared to 21.9% in the same period last year. This significant improvement was delivered primarily due to a favorable trade sales mix, price increase impact coupled with the company’s continuous cost efficiency initiatives across the organization.

On the costs front, the company’s Selling, marketing, and distribution expenses were recorded at Rs1.38bn, depicted a decline of 1.6% YoY on the back of lower promotional spend by utilization of digital HCP engagement and robust spend management. Administrative expenses were clocked in at Rs0.66bn, up by 13% YoY compared to the same period last year due to inflation and covid-related safety precautions.

Moreover, the company’s effective tax rate stood at 35% against 34% in the same period last year.

Overall, despite covid related challenges during the period, Glaxo posted healthy profits as it remains committed to driving strong growth by investing in core brands effectively improving turnover and profit thus complementing returns to shareholders.

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