GlaxoSmithKline announces a dividend of Rs 7 per equity share

Our Corporate Bureau
13 March 2003

This year's dividend, when approved by the shareholders at the annual general meeting, will absorb Rs 52.13 crore. The dividend distribution tax (DDT) borne by the company amounts to Rs 6.68 crore.

Performance
The pharmaceutical business of the company of Rs 918 crore has grown at 8 per cent in line with the industry growth rate. The focus products registered a strong double-digit growth. The company's total sales of Rs 1,148.22 crore (Rs 1,097.37 crore) grew at 4.6 per cent primarily due to a lesser growth experienced by animal health and fine chemicals businesses.

In line with the company's strategy, the focus products have mainly contributed to increased sales which, in turn, has given a significant boost to the bottomline of the company. The net profit after tax of Rs 98.06 crore (Rs 43.98 crore) has grown at a healthy rate of 71 per cent. While the animal health business recorded a growth of 3.6 per cent, sales of the fine chemicals business declined by 4.8 per cent.

Says GSK Pharmaceuticals managing director Kal Sundaram: “This significant improvement in profit is due to the strategies adopted by the company during the past couple of years. We aimed at improving the profit-to-sales ratio to strong double digits and growing profits significantly faster than sales.

“We achieved this objective while retaining our market leadership. A sharp focus on profitable pharmaceuticals brands, manufacturing and procurement efficiencies, tighter control on expenses, synergies from integration and head-count rationalisation have all contributed to the improved profits.“

The pharmaceuticals business
Sales of the pharmaceuticals business segment of the company stood at Rs 918 crore, constituting 81 per cent of the company's total sales. The company maintained its No 1 position in the Indian pharmaceuticals market with a share of 5.9 per cent. The growth rate of 8 per cent in pharmaceuticals sales is in line with the growth of the industry.