GSK Pakistan Reports 23% Rise in Q1 Profit as Sales Cross Rs17 Billion

KARACHI: GlaxoSmithKline (GSK) Pakistan Limited has kicked off 2026 on a strong note, posting robust financial results for the first quarter ended March 31, 2026, driven by higher sales, improved margins, and operational efficiencies.

The pharmaceutical company reported net sales of Rs17.03 billion, compared to Rs15.58 billion in the same period last year, reflecting healthy business growth. Excluding sales related to Haleon Pakistan Limited, GSK said its underlying revenue grew by 10% year-on-year.

Profit after tax climbed to Rs2.61 billion, up from Rs2.13 billion recorded in the corresponding quarter of 2025, representing an increase of nearly 23%. Consequently, earnings per share (EPS) improved to Rs8.20, compared with Rs6.68 a year earlier.

The company also reported a notable improvement in profitability, with its gross margin increasing to 37.5%, up by around three percentage points from the same period last year. Management attributed the stronger margins to price adjustments following the deregulation of non-essential products, along with ongoing cost optimization and sustainability initiatives.

Operating profit rose to Rs4.31 billion, while profit before tax reached Rs4.29 billion, supported by stronger sales and disciplined cost management despite continued investment in key business areas.

In its directors’ report, GSK Pakistan highlighted that the country’s macroeconomic environment continues to improve, supported by easing inflation, stronger foreign exchange reserves, and fiscal discipline. However, the company warned that escalating tensions in the Middle East could increase inflationary pressures, disrupt supply chains, and raise import costs, posing risks to future business performance.

Looking ahead, GSK said it remains committed to ensuring the availability of high-quality medicines while enhancing operational efficiency and shareholder value. The company also emphasized the importance of a supportive regulatory framework to encourage investment and maintain high standards in pharmaceutical manufacturing across Pakistan.