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

-

-

-

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.