GlaxoSmithKline Pakistan Limited reported a profit after tax of Rs1.97 billion for the second quarter of calendar year 2026, down 5% from the same period last year and 25% from the previous quarter.
The company posted earnings per share of Rs6.19 and announced a Rs7 per-share dividend for the quarter.
Sales Remain Nearly Flat
Net sales stood at Rs14.49 billion, compared with Rs14.72 billion a year earlier.
Lower local volumes were largely offset by higher prices, helping the company maintain its topline despite weaker demand.
Quarterly revenue declined 15% compared with the first quarter, mainly because of lower seasonal demand for antibiotics including Augmentin, Amoxil and Velosef.
Gross Margin Improves
Despite pressure on sales volumes, GSK Pakistan managed to improve its gross profitability.
Gross profit increased 3% year-on-year to Rs5.54 billion, while the cost of products sold declined 4% to Rs8.95 billion following negotiations with vendors.
As a result, the gross margin improved by 1.7 percentage points to 38.2%.
Operating profit also increased slightly, reaching Rs3.42 billion, up 1% from the same quarter last year.
Higher Costs And Taxes Pressure Profit
Administrative expenses increased sharply by 41% to Rs676 million, limiting the benefit of stronger gross margins.
Meanwhile, taxation climbed to Rs1.67 billion, taking the effective tax rate to approximately 45.9%.
Profit before tax rose 4% to Rs3.64 billion, but higher administrative expenses and the heavier tax burden reduced the improvement at the net-profit level.
First-Half Earnings Show Modest Growth
For the first six months of 2026, GSK Pakistan’s net sales increased 4% to Rs31.52 billion, while profit after tax rose 9% to Rs4.58 billion.
The company’s half-year gross margin also improved significantly, reaching 37.8% compared with 35.3% a year earlier.
However, the business continues to rely on price increases to offset pressure from weaker volumes.
Seasonal Demand Could Support Second Half
Sales of antibiotics and dermatology products could improve during the second half of the year as seasonal demand strengthens.
However, the continued absence of medical tourism from Afghanistan remains a challenge for volume recovery.
Overall, GSK Pakistan’s latest results show that stronger margins and cost controls can support profitability, but rising administrative expenses, taxation and weak volumes continue to limit earnings growth.