GlaxoSmithKline Pharmaceuticals Ltd (GSK), a leading MNC in India, improved its performance during the year ended December 2004 and its net profit improved by 16 per cent to Rs 266 crore. Profit before tax as per cent of sales improved to 30.4 per cent from 28.1 per cent. The Board of Directors recommended total equity dividend of 240 per cent, which includes special additional one-time dividend of Rs 11 per equity share. The total dividend will absorb an amount of Rs 236.96 crore.
The company's total sales increased by 7.7 per cent, mainly due to a double- digit growth of promoted products. Its overall net sales of the pharmaceuticals business grew by 8.7 per cent against an industry growth of 6.4 per cent. Net sales of the pharmaceuticals business segment reached at Rs 1158 crore constituting 84 per cent of the company's total sales. New products contributed Rs 60 crore during 2004.
S Kalyansundaram, managing director, said, "This improved performance is the result of the continued focus on priority brands and enhanced operations efficiencies. We have achieved tremendous success with Augmentin, which continues to gain market share. We will soon be entering growing market segments like Cardiovascular, Central Nervous System and Diabetes."
The company continues to focus on aggressive sales and marketing efforts on selected major brands. These brands have continued to achieve a strong double-digit growth. M B Kapadia, senior executive director added that the pharma business was successful in driving the sales growth entirely through growth in volumes. The novel concept of "Famili Vaccines," which is an immunization awareness initiative launched by GSK last year, gained momentum during 2004. The company launched two new vaccines 'Fluarix' and 'Priorix' during 2004.
GSK commands a 6.5 per cent market share retaining its top position in the Indian pharma. Kalyansundaram added that the Indian pharmaceutical sector has improved its growth during the year 2004 as compared with the previous year despite price erosions resulting from stiff competition and a slow down of new product introductions by domestic companies. GSK is also planning to enter new tie-ups in 2005. While giving more details of the future plans, he said that the company was taking decision shortly on the Mulund Plant as well as regarding buy back scheme.
Due to merger of Burroughs Wellcome, its equity capital increased by Rs 12.84 crore to Rs 87.32 crore during 2004. The earning per share before exceptional items worked out to Rs 30.5 as against Rs 24.4 in the previous year. The company has shown Rs 67.04 core as exceptional item.