GlaxoSmithKline Pakistan Limited (GLAXO) delivered a strong financial performance in 2025, reporting annual profit of Rs.10.0 billion (EPS: Rs.31.5), marking a 53 percent year-on-year increase, primarily driven by improved margins and pricing adjustments.
During 4Q2025, the company recorded earnings of Rs.3.8 billion (EPS: Rs.11.9), rising 28 percent year-on-year and 86 percent quarter-on-quarter. The quarterly result exceeded expectations, supported by stronger-than-anticipated gross margin improvement.
Net sales for the fourth quarter reached Rs.21.4 billion, reflecting growth of 22 percent year-on-year and 51 percent quarter-on-quarter. Full-year net sales stood at Rs.65.9 billion, up 8 percent year-on-year, mainly due to price revisions and a favorable shift in product portfolio mix.
Gross margins expanded to 39.5 percent in 4Q2025 compared with 33.2 percent in the same period last year and 36.7 percent in the preceding quarter. Industry data indicates that average product prices increased by 17 percent year-on-year and 4 percent quarter-on-quarter during the period.
Other income declined significantly to Rs.512 million in 4Q2025, down 64 percent year-on-year owing to lower promotional allowance receipts. For the full year, other income totaled Rs.1.4 billion, decreasing 50 percent year-on-year. The company typically receives the majority of promotional allowances from its parent entity in the fourth quarter; in 4Q2024, such inflows amounted to Rs.1.1 billion, taking the annual total to Rs.2.0 billion.
The effective tax rate rose to 41.0 percent in 4Q2025 compared with 39.9 percent a year earlier and 39.3 percent in 3Q2025. On an annual basis, the effective tax rate increased to 39.9 percent versus 34.6 percent in 2024.
Alongside the results, GLAXO announced a cash dividend of Rs.12 per share for the final quarter, exceeding market expectations of Rs.10 per share. Total dividend distribution for 2025 reached Rs.17 per share, translating into a payout ratio of 54.0 percent compared with 48.7 percent in the previous year.
The stock is currently trading at a 2026 estimated price-to-earnings multiple of 9.4x and a 2027 forward price-to-earnings multiple of 8.1x.
