GlaxoSmithKline Bangladesh Ltd has posted the ever highest earnings per share in 2019 thanks to closure of its unprofitable pharmaceuticals business in Bangladesh.
The UK-based pharmaceuticals giant has reported EPS of Tk 81.83 for the year ended on December 31, 2019, the ever highest in the history of the company that validates the decision to closure the pharmaceuticals business, according to its latest annual report 2019.
The GSK, one of the world's leading research-based pharmaceutical and healthcare companies, shut its medicine manufacturing unit in 2018 after six decades of operation due to incurring huge losses for the five consecutive years before closure.
The multinational company continued with its consumer healthcare unit that produces Horlicks, Sensodyne and Glaxose-D in Bangladesh as the company makes a healthy profit from this segment.
GSK continued to lead the health food drink category with 91.8 per cent market share and maintained a strong second position in instant powder drinks category with 19.2 per cent market share in 2019, according to the annual report.
The company witnessed a strong performance in 2019 and coming back to profit after the closure of pharmaceutical operations in 2018, Masud Khan, chairman of the GSK Bangladesh, said in the annual report 2019.
Mr Khan noted that costs and relevant provisions related to discontinued pharma business reduced substantially in 2019 resulting in profit for the year at Tk 986 million.
The company is committed to upholding the highest ethical standards while carrying out the business activities and ensuring that consumer safety is always a priority, he added.
The company's revenue stood at Tk 4,475 million against Tk 4,817 million in 2018, 7.0 per cent decline due to lower sales from Horlicks.
However, the company's gross profit increased by 10 per cent, due to cost savings initiatives, one-off adjustment while offsetting incremental duty impact.
GSK Bangladesh's product lines include nutrition and oral healthcare products, led by brands like Horlicks and Sensodyne. Standard Horlicks, Mother's Horlicks, Junior Horlicks and Horlicks Growth Plus posted steady growth in the outgoing year.
Sensodyne had a bonanza year in 2019, achieving multiple brand and commercial targets, officials said.
The company focused on driving penetration and distribution of its products at affordable price points.
Several initiatives such as new TV campaign, door to door activation through which mothers were given information on nutrition, digital marketing as well as wholesale activations for sachet were undertaken.
The amalgamation of these initiatives has resulted in the double-digit growths as well as continuous increase in household penetration for sachets.
The board of directors of the company has recommended 530 per cent cash dividend for the year ended on December 31, 2019.
