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GlaxoSmithKline Pharma net profit dwindles by 61% in Q4

Our Bureau, MumbaiThursday, February 12, 2015, 15:30 Hrs  [IST]

GlaxoSmithKline Pharmaceuticals (GSK), a leading MNC from Mumbai, has suffered heavy setback during the fourth quarter ended December 2014 due to supply constraints and its net profit declined sharply by 61.2 per cent to Rs.45.30 crore from Rs.116.88 crore in the corresponding period of last year due to lower other income and exceptional provisions. EPS nosedived to Rs.5.3 from Rs.13.8 in the last period. Its net sales increased only by 2.4 per cent to Rs.646 crore from Rs.631 crore.

The other income declined to 21 per cent to Rs.37.77 crore from Rs.47.79 crore and exceptional loss of Rs.46.07 crore as compared to income of Rs.8.41 crore in the last period. Exceptional items includes a charge of Rs.30.37 crore for the rationalisation of capital assets for one of the dosage forms at the Nashik manufacturing facility, and Rs.15.70 crore towards actuarial loss on employee benefits.

GSK scrip declined by over Rs.41 on BSE after the announcement of financial performance to Rs.3225.50. The company decided to change its financial year from January-December 2014 to April-March 2015 for a period of 15 months period.

Pursuant to the global deal, GlaxoSmithKline plc will acquire Novartis' vaccines business, manufacturing capabilites and facilities from Novartis, and GSK will sell the rights to its marketed oncology portfolio, related R&D activities and AKT inhibitors currently in development to Novartis. Thus, GSK will have to terminate for the oncology portfolio in return for accessing the distribution rights of the acquired vaccines portfolio after certain approvals.

For the 12 months ended December 2014, GSK's net profit declined by 26.5 per cent to Rs.369 crore from Rs.502 crore in the same period of last year. EBDITA declined by 8.7 per cent from Rs.660 crore from Rs.723 crore. Its net sales increased by 4.8 per cent to 2,640 crore from Rs.2,520 crore. EPS declined to Rs.43.5 from Rs.59.3 in the last year.

 
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