GlaxoSmithKline Pharmaceuticals records 11 per cent sales growth for Q4, FY 2016-17

The board of directors recommended a dividend at the rate of Rs 30 per equity share of Rs 10 each

GlaxoSmithKline Pharmaceuticals declared its financial results for the year and quarter ended March 31, 2017. Sales for the quarter at Rs.763 crores recorded a growth of 11 per cent as compared to the same prior year period. Profit Before Tax (PBT) at Rs 170 crores and Profit After Tax (PAT) at Rs 113 crores grew by four per cent and six per cent respectively against the same prior year period. The quarterly sales growth rate was adversely impacted by six per cent from a series of mandatory price revisions on products under price control that took place during the year ending March 2017.
Sales for the year ended March 31, 2017 at Rs 2921 crores recorded a growth of six per cent as compared to the same prior year period. Profit Before Tax (PBT) at Rs 511 crores and Profit After Tax (PAT) at Rs 337 crores declined by 11 per cent and 10 per cent respectively as compared to the same prior year period. The annual sales growth rate was adversely impacted by five per cent from the mandatory price revisions.

The Board of Directors of the Company recommended a dividend at the rate of Rs 30 per equity share of Rs 10 each for the 12 month period ended March 31, 2017.

Commenting on the results, A Vaidheesh, MD, GlaxoSmithKline Pharmaceuticals said, “Our financial performance highlights a double digit quarterly sales growth underpinned by a strong volume momentum in our endeavour to bring affordable medicine to Indian patients. The recently launched probiotic food supplement EnteroPlus, the combination vaccines for measles, mumps, rubella and varicella, Priorix Tetra, as well as the restored manufacturing of Neosporin, an antibiotic to treat minor wounds, are all gaining strong momentum within their therapeutic categories. The optimisation of costs contributed to an EBITDA margin of 18 per cent in the quarter, despite the adverse impact from price reductions. Furthermore, the company enhanced its profitability in the quarter with an exceptional income from the disposal of non-core assets totalling Rs 26 crores.”