Glaxo Earnings Up in 1QCY25

Staff Report

Karachi: GlaxoSmithKline Pakistan (Glaxo) announced 1QCY25 EPS of Rs6.7 versus EPS of 1.8 during the same period last year, up by a massive 3.7xYoY.

The jump in earnings is primarily attributable to an increase in gross margins to 34% (up 19ppts). During 1QCY25, the company’s topline remained flat at 15.6bn compared to the same period last year, mainly due decline in volume.

Thanks to a hike in prices and a decline in raw material prices, Glaxo’s gross margin sharply increased to 34% during 1QCY25 versus 15% during the same period last year.

On a QoQ basis, earnings fell by 28%, mainly due to a decline in revenues (the lowest quarterly revenue in the last 1 year) along with a sharp reduction in other income.HBL Earnings Up 9% in 1Q2025

The company posted an 11% QoQ decline in revenue during 1QCY25, which is likely due to a reduction in volumes of its flagship products.
“Our estimates suggest that the company’s 3 leading antibiotic products posted a cumulative decline of 12% in 1QCY25 compared to the previous quarter,” Sherman Research said in a report.

Moreover, other income reported at Rs219mn, which is 85% lower than the other income of Rs1.4bn. Just to recall, the company reported higher other income during the previous quarter, which included promotional allowance. However, on a QoQ basis, gross margin slightly increased by 1 ppt to 34% during 1QCY25.