GlaxoSmithKline Pakistan Limited (PSX: GLAXO) has reported a strong financial performance for 2025, with annual earnings rising by 53 percent year-on-year to Rs. 10.025 billion, translating into earnings per share (EPS) of Rs. 31.5.
The pharmaceutical giant posted a profit after tax of Rs. 3.8 billion (EPS: Rs. 11.9) in the fourth quarter of 2025, marking an increase of 28 percent YoY and an impressive 86 percent quarter-on-quarter (QoQ). According to Topline Securities, the growth was primarily driven by improved gross margins.
The quarterly performance exceeded market expectations, supported by stronger-than-anticipated margin expansion.
Net sales for 4Q2025 stood at Rs. 21.4 billion, up 22 percent YoY and 51 percent QoQ. This brought total net sales for the full year to Rs. 65.9 billion, reflecting an 8 percent YoY increase. The growth was mainly attributed to price adjustments and changes in product portfolio mix.
Gross margins showed notable improvement, reaching 39.5 percent in 4Q2025 compared to 33.2 percent in the same period last year and 36.7 percent in the previous quarter. Data from IQVIA indicates that average product prices increased by 17 percent YoY and 4 percent QoQ during the quarter.
However, other income declined significantly to Rs. 512 million in 4Q2025, down 64 percent YoY due to lower promotional allowance inflows. For the full year, other income fell 50 percent YoY to Rs. 1.4 billion.
Historically, the company receives a major portion of promotional allowances from its parent company during the fourth quarter. In 4Q2024, these allowances stood at Rs. 1.1 billion, bringing the total for 2024 to Rs. 2.0 billion.
The effective tax rate increased to 41.0 percent in 4Q2025, compared to 39.9 percent in 4Q2024 and 39.3 percent in 3Q2025. On a full-year basis, the tax rate rose to 39.9 percent from 34.6 percent in 2024.
Alongside the financial results, GSK Pakistan announced a cash dividend of Rs. 12 per share for the fourth quarter, exceeding market expectations of Rs. 10 per share. This brings the total dividend payout for 2025 to Rs. 17 per share, with a payout ratio of 54 percent, up from 48.7 percent in the previous year.
The company is currently trading at a projected price-to-earnings ratio of 9.4x for 2026 and 8.1x for 2027, indicating steady investor confidence in its future outlook.
