Getting Ahead, Together
T H I R D Q U A R T E R R E P O R T 2 0 2 3
Corporate Information
As at September 30, 2023
Board of Directors
Ms. Lai Kuen Goh
Chairperson
Ms. Erum Shakir Rahim
Chief Executive Officer
Mr. Hasham Ali Baber
Chief Financial Officer
Ms. Maheen Rahman
Independent Director
Mr. Muneer Kamal
Independent Director
Mr. Mehmood Mandviwalla
Non-Executive Director
Mr. Simon Foster
Non-Executive Director
Audit Committee
Mr. Muneer Kamal
Chairman
Ms. Lai Kuen Goh
Member
Mr. Simon Foster
Member
Mr. Mehmood Mandviwalla
Member
Ms. Maheen Rahman
Member
Mr. Ovais Farooq
Secretary
Human Resource
- Remuneration Committee
Ms. Maheen Rahman
Chairperson
Mr. Mehmood Mandviwalla
Member
Ms. Lai Kuen Goh
Member
Mr. Simon Foster
Member
Ms. Erum Shakir Rahim
Member
Mr. Paul Banks *
Secretary
Disclosure Committee
Ms. Erum Shakir Rahim
Chairperson
Ms. Lai Kuen Goh
Member
Agha Salman Taimur **
Member
Mr. Hasham Ali Baber
Secretary
Management Committee
Ms. Erum Shakir Rahim
Chief Executive Officer
Mr. Hasham Ali Baber
Chief Financial Officer
Syed Azeem Abbas Naqvi ***
Interim Legal Director
Dr. Tariq Farooq
Director Business Unit 1
Syed Nasir Farid
Director Business Unit 2
Dr. Naved Masoom Ali
Director Business Unit 3 & CTC
Mr. Rafay Ahmed
Director Commercial Operations
Dr. Gohar Nayab Khan
Head of Regulatory Affairs
Ms. Sumera Naveed
Director Corporate Affairs and Administration
Mr. Faisal Ahmed ****
Country Ethics & Compliance Head
Dr. Yousuf Hasan Khan
Director Medical
Syed Nabigh Raza Alam
Tech Head
Mr. Yasir Rehman
Head of Transformation
Mr. Khurshand Iqbal *****
Site Director - F/268
Mr. Kashif Ayub ******
Site Director - West Wharf
Mr. Masood Khan *******
Interim Site Director - Korangi
Company Secretary
Agha Salman Taimur **
Chief Financial Officer
Mr. Hasham Ali Baber
Chief Internal Auditor
Mr. Ovais Farooq
Bankers
Standard Chartered Bank (Pakistan) Ltd
Citibank NA Pakistan
Deutsche Bank A.G. Pakistan Operations
Habib Bank Limited
Meezan Bank Limited
Auditors
Yousuf Adil Chartered Accountants
Legal Advisors
Hashmi & Hashmi
Faisal, Mahmood Ghani and Co
Legal Consultancy Inc.
Registered Office
35 - Dockyard Road, West Wharf, Karachi - 74000.
Tel: 92-21-111-475-725(111-GSK-PAK)
Website: www.pk.gsk.com
Share Registrar
CDC Share Registrar Services Limited CDC House, 99 - B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal Karachi - 74400, Pakistan
Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275) Fax: (92-21) 34326053
Email: info@cdcsrsl.com
Website: www.cdcsrsl.com
- Mr. Paul Banks appointed as Secretary of HR & Remuneration Committee as at 14 July 2023 upon the resignation of Mr. Farqaleet Iqbal, HR Country Head
- Agha Salman Taimur was appointed as Company Secretary on 2 June 2023, replacing Ms. Mehar-e-daraksha Ameer
- Syed Azeem Abbas Naqvi was appointed as Interim Legal Director, replacing Ms. Mehar-e-daraksha Ameer
- Mr. Faisal Ahmed was appointed as Country Ethics & Compliance Head on 13 April 2023, replacing Ms. Esra Mezrea
- Mr. Khursand Iqbal appointed as SITE Director F/268 as at 1 August 2023 upon the retirement of Mr. Imtiaz Hussain
****** Mr. Kashif Ayub appointed as SITE Director West Wharf as at 1 August 2023 replacing Mr. Khurshand Iqbal
******* Mr. Masood Khan appointed as Interim SITE Director Korangi as at 1 August 2023 replacing Mr. Kashif Ayub
2 | GSK Third Quarter Report September 2023 |
GSK Third Quarter Report September 2023 | 3 |
Our Presence
Global Landscape
Our Footprint in Pakistan
Head Office
Sales Office
Warehouse
Factory
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4 | GSK Third Quarter Report September 2023 |
Directors' Report to the Shareholders
The Directors of GlaxoSmithKline Pakistan Limited (the "Company") present the un-audited financial information for the nine months period ended September 30, 2023. This financial information is submitted in accordance with Section 227 of the Companies Act, 2017.
Business environment and challenges:
The IMF program and financial support from friendly countries has given some relief to the economy of Pakistan which was under significant pressure. This has been evidenced by slight improvement in the exchange rates. However, long standing issues such as high inflation rate, increasing fuel cost and current account deficit remain of significant concern.
Despite these challenges, GSK is operating as a responsible business, displaying dedication to address the hurdles through portfolio optimisation, cost control, improved working capital management, and efficient operations management.
Review of Operating Results:
The Company achieved net sales of Rs. 37 billion, representing a growth rate of 23%. Within the total net sales figure, Rs. 1.25 billion was generated from Haleon Pakistan Limited, pertaining to products manufactured by the Company for Haleon Pakistan Limited, for which the marketing authorisation rights remain with GSK.
Excluding these specific sales, the underlying sales growth remains at 24%. This growth can be attributed to our robust execution strategies, effective engagement with Healthcare Professionals (HCPs) through multiple channels, and price increase compared to the previous year. This resulted in our key brands demonstrating strong double-digit growth.
Despite the sales performance, the Company's gross margin for the fiscal year stood at 7%, reflecting a decrease of 11% compared to the corresponding period in the previous year. This decline can be primarily attributed to substantial currency devaluation, inflationary pressures, and rising fuel costs. The impact of margin erosion was partially offset by a one-time inflationary adjustment permitted by the Government.
TheCompanyremainedfocusedinenhancingoperational efficiency and cost saving measures. Consequently, despite encountering significant inflationary pressures, the proportion of operating expenses relative to sales
witnessed a mere 1% increase in comparison to the prior period.
Furthermore, the Company made prudent investments in key business drivers with the objective of achieving competitive growth and enhancing return on investment.
(Loss) / earnings per share for this quarter declined to Rs. (1.23) as compared to Rs. 2.45 in the corresponding period last year.
Future Outlook
The Pharmaceutical industry is in a difficult situation with soaring inflation, weakened currency and its prices fixed by the regulator. The industry plays a critical role in the healthcare ecosystem in Pakistan, by developing and ensuring supply of life-saving medicines and sustaining medical advancements. Therefore, we hope that the Government will make all efforts to provide a conducive business environment for the industry to grow by resolving pending hardship cases and an equitable pricing policy that caters to external economic issues.
We will continue to build on our competencies and review our strategies to ensure that they remain relevant and most suited with the changing business environment. Your company remains focused on making concerted efforts to improve performance through efficient and effective cost containment initiatives.
Acknowledgment:
The Board of Directors would like to take this opportunity to express its deep appreciation of the commitment, resilience, courage and dedication of its employees. We would also like to acknowledge the continued support and cooperation received from our esteemed customers, suppliers, bankers, and shareholders and thank them for reposing confidence in our Company and products.
By order of the Board
Erum Shakir Rahim | |
Chief Executive Officer | Director |
Karachi
October 24, 2023
GSK Third Quarter Report September 2023 | 5 |
6 | GSK Third Quarter Report September 2023 |
GSK Third Quarter Report September 2023 | 7 |
Condensed Interim Statement of Financial Position
As at September 30, 2023
ASSETS
Note
Un-audited | Audited |
September 30, | December 31, |
---------------2023 | Rupees in '000 2022------------- |
Non-current assets
Property, plant and equipment4 Intangibles
Long-term loans to employees
Long-term deposits
Current assets
Stores and spares
Stock-in-trade
Trade receivables
Loans and advances
Trade deposits and prepayments
Interest accrued
Taxation - payments less provision
Refunds due from government
Other receivables
Cash and bank balances
Total assets
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
11,217,221 | 10,997,341 | |||
955,742 | 955,742 | |||
84,760 | 58,052 | |||
33,234 | 27,520 | |||
12,290,957 | 12,038,655 | |||
204,227 | 181,140 | |||
13,132,320 | 9,545,315 | |||
1,032,200 | 1,584,526 | |||
1,417,088 | 1,644,515 | |||
121,800 | 211,029 | |||
- | 2,433 | |||
203,633 | - | |||
1,241,496 | 1,250,816 | |||
5,629,755 | 4,328,953 | |||
3,824,096 | 4,754,525 | |||
26,806,615 | 23,503,252 | |||
39,097,572 | 35,541,907 | |||
Share capital | 3,184,672 | |||
Reserves | 17,476,814 | |||
Total equity | ||||
20,661,486 | ||||
LIABILITIES | ||||
Non-current liabilities | ||||
Staff retirement benefits | 677,615 | |||
Deferred taxation | 797,122 | |||
Lease liabilities | 13,765 | |||
Current liabilities | 1,488,502 | |||
Trade and other payables | 5 | 14,889,215 | ||
Taxation - provision less payments | 6 | - | ||
Provisions | 71,008 | |||
Current portion of lease liabilities | 11,945 | |||
Unclaimed dividend | 7 | 134,207 | ||
Unpaid dividend | 1,841,209 | |||
16,947,584 | ||||
Total liabilities | ||||
18,436,086 | ||||
Total equity and liabilities | ||||
39,097,572 | ||||
Contingencies and commitments | 8 |
The annexed notes 1 to 17 form an integral part of this condensed interim financial statements.
3,184,672
17,868,435
21,053,107
577,804
957,001
45,424
1,580,229
9,911,009
936,806
65,069
16,502
137,976
1,841,209
12,908,571
14,488,800
35,541,907
Chief Executive Officer | Chief Financial Officer | Director |
8 | GSK Third Quarter Report September 2023 |
Condensed Interim Statement of Profit or Loss and Other Comprehensive Income
For the nine months ended September 30, 2023 (Unaudited)
Quarter ended | Nine months ended | |||||||
September 30, | September 30, | September 30, | September 30, | |||||
Note | 2023 | 2022 | 2023 | 2022 | ||||
----------------------------- | Rupees '000 ----------------------------- | |||||||
Revenue from contracts with customers - net | 9 | 13,770,544 | 11,925,662 | 37,029,870 | 30,094,003 | |||
Cost of sales | (12,742,467) | (10,304,734) | (34,406,705) | (24,581,431) | ||||
Gross profit | 1,028,077 | 1,620,928 | 2,623,165 | 5,512,572 | ||||
Selling, marketing and distribution expenses | 10 | (1,167,304) | (985,581) | (3,436,017) | (2,489,953) | |||
Administrative expenses | (622,193) | (593,149) | (1,491,802) | (1,302,779) | ||||
Other operating income / (expenses) | 5,067 | (17,952) | (26,744) | (209,463) | ||||
Other income | 11 | 672,644 | 688,453 | 2,964,813 | 1,765,202 | |||
Operating (loss) / profit | (83,709) | 712,699 | 633,415 | 3,275,579 | ||||
Financial charges | (11,733) | (430,363) | (377,935) | (790,871) | ||||
(Loss) / profit before taxation | (95,442) | 282,336 | 255,480 | 2,484,708 | ||||
Taxation - net | 12 | 25,652 | (133,672) | (647,101) | (1,704,832) | |||
(Loss) / profit after taxation | (69,790) | 148,664 | (391,621) | 779,876 | ||||
Other comprehensive income | - | - | - | - | ||||
Total comprehensive (loss) / income | ||||||||
(69,790) | 148,664 | (391,621) | 779,876 | |||||
(Loss) / earnings per share - Rupees | 13 | (0.22) | 0.47 | (1.23) | 2.45 | |||
The annexed notes 1 to 17 form an integral part of this condensed interim financial statements.
Chief Executive Officer | Chief Financial Officer | Director |
GSK Third Quarter Report September 2023 | 9 |
Condensed Interim Statement of Changes in Equity
For the nine months ended September 30, 2023 (Unaudited)
Revenue reserves | |||||||||||
Capital reserve | Revenue reserves | ||||||||||
Share | Reserve | Total | Total | ||||||||
arising on | General | Unappropriated | |||||||||
capital | reserves | ||||||||||
schemes of | reserve | profit | |||||||||
arrangements | |||||||||||
------------------------------------------------------ | Rupees '000 ----------------------------------------------------- | ||||||||||
Balance as at January 1, 2022 | 3,184,672 | 1,126,923 | 3,999,970 | 12,675,100 | 17,801,993 | 20,986,665 | |||||
Final dividend for the year ended | |||||||||||
December 31, 2021 @ Rs. 7 per share | - | - | - | (2,229,271) | (2,229,271) | (2,229,271) | |||||
Total comprehensive income for the | |||||||||||
nine months ended September 30, 2022 | - | - | - | 779,876 | 779,876 | 779,876 | |||||
Balance as at September 30, 2022 | |||||||||||
3,184,672 | 1,126,923 | 3,999,970 | 11,225,705 | 16,352,598 | 19,537,270 | ||||||
Balance as at January 1, 2023 | 3,184,672 | 1,126,923 | 3,999,970 | 12,741,542 | 17,868,435 | 21,053,107 | |||||
Total comprehensive loss for the | |||||||||||
nine months ended September 30, 2023 | - | - | - | (391,621) | (391,621) | (391,621) | |||||
Balance as at September 30, 2023 | |||||||||||
3,184,672 | 1,126,923 | 3,999,970 | 12,349,921 | 17,476,814 | 20,661,486 | ||||||
The annexed notes 1 to 17 form an integral part of this condensed interim financial statements.
Chief Executive Officer | Chief Financial Officer | Director |
10 | GSK Third Quarter Report September 2023 |
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GSK - GlaxoSmithKline Pakistan Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 08:44:07 UTC.