In 3QCY23, GlaxoSmithKline Pakistan Limited reported a net loss of PKR 69.79 million (LPS: PKR 0.22), compared to the net profit of PKR 148.66 million (EPS: PKR 0.47) in the corresponding period of the previous year.
The net revenue exhibited an 15% YoY growth, reaching PKR 13.77 billion in 3QCY23, compared to PKR 11.93 billion in the corresponding period last year. The 25% growth in revenue was attributed to volumetric growth, and 75% to price increases.
Simultaneously, the gross profit witnessed a 37% YoY decrease, reaching PKR 1.03 billion in 3QCY23, down from PKR 1.62 billion in the same period last year.
Cost of sales experienced a 24% YoY surge, reaching PKR 12.74 billion in 3QCY23, compared to PKR 10.30 billion in the corresponding period last year. Similarly, finance costs significantly decreased to PKR 11.73 million, while operating loss was reported at PKR 83.71 million in 3QCY23 as compared to operating profit of PKR 712.70 million last year.
GLAXO successfully reduced inventory and receivable days to 103 days and 8 days from 116 days and 17 days, respectively, in 3QCY23. Likewise, the payable days reduced to 46 days in 3QCY23 from 70 days in SPLY.
The percentage of essential items is 60%, and that of non-essential items is 40%. The management stresses incentivizing the production of essential items to make them more affordable and margin-friendly for pharma companies.
To increase exports, the management highlighted the need to create a favorable environment for intellectual property rights, regulatory environment, certain certifications, and a fair price mechanism.
Going forward, the pharma company intends to launch new products and is actively exploring the PLC of these products. Regarding dividends, the GLAXO management indicated a decision would be made after the current financial year concludes.
Important Disclosures
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