GlaxoSmithKline Pakistan Ltd (PSX: GLAXO) has posted mixed financial results, reflecting a wider trend seen across Pakistan’s pharmaceutical sector.
While the company has delivered a sharp improvement in profits, recent numbers suggest that demand is not fully keeping pace with higher prices across the industry.
According to a briefing by Chase Securities, GSK Pakistan reported earnings per share (EPS) of Rs. 20.52 for calendar year 2024, a significant jump from Rs. 1.68 in 2023.
This strong increase highlights improved operating efficiency and the positive impact of better pricing power within the pharmaceutical sector. The momentum continued in the latest quarter with EPS for 3QCY25 rising to Rs. 6.40, compared to Rs. 6.05 in the same period last year.
However, revenue figures paint a more complex picture. Net sales in the third quarter of 2025 stood at Rs. 14.2 billion, marking a 4 percent decline year-on-year.
Despite lower sales, the company’s gross profit increased by 29 percent during the quarter. Gross margins also expanded sharply to 37 percent, up from 27 percent last year. This improvement was largely supported by a 16 percent reduction in the cost of sales.
These figures suggest that pricing strategies and a better product mix are driving profitability even as sales volumes soften.
Analysts note that higher prices have helped protect margins but consumer demand appears to be adjusting more slowly to the new pricing environment.
Management has linked the weaker revenue trend to multiple factors, including pressure on consumer purchasing power and changes in market demand patterns.
While profitability remains strong for now, experts say sustaining growth will depend on how well demand recovers and whether the company can balance pricing with volume growth in the coming quarters.