GSK reports revenue growth at 3 per cent in quarter financial results

GlaxoSmithKline Pharmaceuticals declared its financial results for the quarter ended 31st March 2020. Revenue for the quarter came in at Rs 776 crores. Profit After Tax at Rs 138 crores recorded a growth of 12 per cent.

The full year reported revenue was at Rs 3225 crores, a growth of 3 per cent (sales growth of 3 per cent) versus last year. EBIDTA for the year is 21 per cent and is higher by 1 per cent against the prior year.

Commenting on the results, Sridhar Venkatesh, Managing Director, GlaxoSmithKline Pharmaceuticals Limited said, “Despite the headwinds caused by Covid-19 during Q4, I am pleased with our overall performance during the year. Keeping patient safety at the core, GSK continues to serve the patients through a dedicated workforce that has ensured continued production and supply of medicines across the country during such challenging circumstances. Our investments into digital transformation have helped us immensely during these times to keep us connected to the healthcare professionals (HCPs) and pay closer attention to their needs.

In 2019, we continued to focus on delivering sustainable profitable growth. We witnessed an accelerated growth in the anti-infectives, dermatology and anti-pyretic therapy areas, through a skill-enhanced sales force and improved engagement with HCPs. Our major primary care brands grew at a better rate than the Indian Pharmaceutical Market. The underlying Sales growth adjusting for tail-end brand rationalization and divestment is at a healthy 13% and our key brands continue to grow at +20 per cent. The Board of Directors recommend a Dividend of Rs 40 per equity share which includes a special dividend of Rs. 20 per share for this year.

In preventive healthcare, GSK continues to be the No. 1 vaccines company in the self-pay segment with almost 40 per cent value market share in represented segments. In December 2019, we launched Menveo (Quadrivalent Meningococcal Conjugate Vaccine), which has demonstrated early success and within four months of its launch has a 30 per cent unit share.

Our Q3 and full year results were impacted due to the voluntary global recall of ranitidine products including Zinetac in India and trigger-based impairment charges primarily towards our manufacturing facility at Vemgal. We are currently exploring future options for the Vemgal facility including a potential sale of the site.

The Q4 has presented to us an unprecedented challenge in the form of a global pandemic. At GSK, our core guiding principles remains employee safety and well-being, business continuity, and social responsibility. As the nation-wide lockdown is getting relaxed, GSK is swiftly adapting to news ways of working defined by self-assessment, social distancing and good hygiene practices. As a socially responsible corporate citizen, we have contributed essential medicines and PPEs to the state government of Maharashtra and have committed funds to the PM-CARES.”