Glaxo Revenue 23% Up in CY24

Staff Report

Karachi: GlaxoSmithKline Pakistan Limited (GLAXO) has reported 23% YoY revenue growth in CY24, primarily driven by price increases.

GlaxoSmithKline Pakistan Limited (GLAXO) held its AGM on Monday, where the management discussed the company’s performance in CY24.

The company reported 23% YoY revenue growth in CY24, primarily driven by price increases. GLAXO’s portfolio remains evenly split between Essential and Non-Essential products.

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Prices rose by 20% YoY for Essential and 27% YoY for Non-Essential products, mainly due to a one-time price hike allowed by the government of 20% and 14% in Non-Essential and Essential categories, respectively, during CY23.

Revenue-wise, Vates was the largest contributor, generating Rs 11.5 bn (19%), followed by Augmentin and Velosef with Rs 10.7 bn (17%) and Rs 5.4 bn (9%), respectively.

Amoxil and Calpol contributed Rs4.8bn (8%) and Rs3.4bn (6%), respectively. The company currently holds about 10% of the pharmaceutical market in terms of volume and 6% in terms of value.

When asked about the promotional allowance, management clarified that it represents financial support from the parent group to assist in marketing and promotional activities. Promotional allowance income declined from Rs5 bn in CY23 to Rs2 bn in CY24, primarily due to stronger core earnings in CY24, reducing the need for external support.

 Additionally, GLAXO is currently manufacturing Panadol CF, Panadol CF Day, and ENO for Haleon