GlaxoSmithKline declares Rs7 dividend

August 25, 2026 (MLN): GlaxoSmithKline Pakistan Limited (PSX: GLAXO) reported a 9% increase in its net profit for the half-year ended June 30, 2026 (1HCY26), reaching Rs4.58bn compared to Rs4.20bn in the corresponding period last year.

Alongside the financial results, the company announced an interim cash dividend of Rs7 per share.

Reflecting this bottom-line trajectory, basic and diluted earnings per share (EPS) for the six-month period improved to Rs14.38, up from Rs13.17 in 1HCY25.

The primary driver behind the performance was top-line growth coupled with effective cost management at the production level.

Net revenue from contracts with customers increased 4% year-on-year to Rs31.52bn, up from Rs30.30bn in 1HCY25.

Meanwhile, the cost of sales remained virtually flat at Rs19.60bn, enabling gross profit to expand by 11% to Rs11.92bn compared to Rs10.70bn in the prior year.

On the operational front, overheads expanded to support commercial scale and administration.

Selling, marketing, and distribution expenses rose 6% to Rs2.74bn, administrative expenses grew 24% to Rs1.26bn, and other operating expenses increased 10% to Rs676.84m.

Although "other income" dipped 4% to Rs713.17m, core gross margin gains pushed operating profit up by 10% to Rs7.96bn.

Below the operating line, GLAXO gained substantial relief from reduced financial charges.

Finance costs plummeted by 86% to Rs29.53m (down from Rs214.42m in 1HCY25). Supported by this interest cost relief, profit before taxation grew by 13% to reach Rs7.93bn.

The company absorbed a 19% higher corporate income tax expense of Rs3.35bn for the six-month period (up from Rs2.82bn in 1HCY25).

Supported by top-line revenue growth, expanded gross margins, and near-elimination of finance costs, GlaxoSmithKline Pakistan Limited securely closed the half-year with its net profit reaching Rs4.58bn.

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