Karachi: GlaxoSmithKline Pakistan Limited reported a significant increase in its first-quarter earnings for 2026, with earnings per share rising by 23% year-over-year, exceeding industry expectations. The company recorded earnings of Rs2.6 billion, with net sales reaching Rs17.0 billion, a 9% increase compared to the same period last year.

According to JS Global, the company's performance was bolstered by higher-than-expected gross margins and increased net sales, driven by price hikes and greater institutional sales. Despite a 31% quarter-over-quarter decline in earnings, the results were above industry forecasts due to a 37.5% gross margin, up from 34.2% the prior year.

Distribution costs rose by 22% YoY to Rs1.3 billion, while administrative costs increased by 8% YoY to Rs583 million. Other income fell by 17% YoY to Rs182 million, attributed to a decrease in promotional allowances from the previous quarter. The effective tax rate for the quarter was 39.12%, slightly lower than the previous year's 39.59%.

The company did not announce a cash dividend for the quarter, aligning with market expectations. Analysts maintain a buy stance on GlaxoSmithKline Pakistan, with the stock trading at a projected price-to-earnings ratio of 10.8x for 2026 and 9.3x for 2027.