Karachi: GlaxoSmithKline Pakistan Limited (GLAXO) reported a remarkable 28% year-on-year increase in its earnings per share for the fourth quarter of 2025, reaching Rs11.9. The company's earnings exceeded industry expectations, primarily driven by improved gross margins.
According to JS Global, GlaxoSmithKline Pakistan's net sales for the fourth quarter rose by 22% year-on-year to Rs21.4 billion, contributing to a total annual net sale of Rs65.9 billion, an 8% increase from the previous year. The growth was attributed to price increases and a strategic change in the company's portfolio mix.
The company's gross margins for the fourth quarter improved to 39.5% compared to 33.2% in the same quarter of the previous year. Notably, average prices surged by 17% year-on-year. However, other income during the quarter decreased by 64% year-on-year due to a lower inflow of promotional allowances from the parent company.
The effective tax rate for the quarter increased slightly to 41%, while the company announced a cash dividend of Rs12 per share, exceeding expectations. The annual dividend for 2025 amounted to Rs17 per share, with a payout ratio of 54%. GlaxoSmithKline Pakistan is currently trading at a price-to-earnings ratio of 9.4 for 2026 and 8.1 for 2027.
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