The significant revenue and profit growth of this quarter is due to base effect of trade channel de-stocking ahead of the introduction of GST in the previous year
GlaxoSmithKline Pharmaceuticals recently declared its financial results for the quarter ended June 30,2018. Revenue from operations for the quarter ended June 30,2018 was at INR 736 crores, recording a growth of 21 per cent as compared to the same prior year period. Profit Before Tax (PBT) was at INR 138 crores and Profit After Tax (PAT) at INR 87 crores and EBITDA margin was 19 per cent for the quarter.
The significant revenue and profit growth of this quarter is due to base effect of trade channel de-stocking ahead of the introduction of GST in the previous year. Furthermore, the revenue of this quarter is not comparable to the prior year quarter due to the dynamics of GST rates on prices. The Board of Directors at its meeting held recently have considered, approved and recommended a Bonus Issue of equity shares in the ratio of 1 (One) Equity Share of INR 10/- each for every 1 (One) Equity Share of INR 10/- each held by the shareholders of the Company as on the record date, subject to the approval of shareholders.
Commenting on the results, A Vaidheesh, Managing Director, GlaxoSmithKline Pharmaceuticals said,“ Excluding the impacts of GST and our divested portfolio, we witnessed underlying double-digit, profitable growth with our priority portfolio, supported by robust volume growth. In keeping with our goal to become one of the world’s most innovative, best performing and trusted healthcare companies, we are evolving our commercial operating model to invest resources on key products and patients/consumers to drive growth for our company. Identified therapies will also be supported by incremental field force during the course of the year.”
“Exceptional items for the current quarter includes a charge in establishment costs because of restructuring the commercial organisation to align with our new operating model and focused therapy investment. We also launched, Infanrix Hexa (hexavalent DTaP – diphtheria, tetanus, acellular pertussis, Hepatitis B, Polio, Hib) in April. We are pleased to note the good response from paediatricians in the first quarter. I hope we will continue to generate confidence in the market around this brand and help protect more kids against 6 vaccine preventable diseases. The company is pleased to recommend a 1:1 bonus issue of shares as a distribution of reserves,” he adds.