GlaxoSmithKline Bangladesh has reported a higher profit in the first quarter of this year mainly because of streamlining its business the previous year. Meanwhile, the company's operational loss has reduced mainly due to the closure of its pharmaceutical business.
During the three months to the end of March this year, the company's net income was Tk18.04 crore, down from Tk13.32 in the previous year. In that perspective, the net income of the company has increased by 35.44 percent. During the period, its earnings per share were Tk14.97, up from Tk11.06 in the same period of last year.
The net asset value (NAV) per share of the company is Tk147.12 which used to be Tk115.16 during the same time the previous year. The company's NAV has increased by 28 percent compared to that in 2019, resulted from consistent solid business performance and improved retained earnings. Consequently, other expenses of the company have increased by Tk0.18 crore as compared to that of 2019 due to one-off professional and consultancy fees related to the ongoing large strategic project.
Its net profit has increased by Tk2.86 crore resulting from better interest rates on fixed deposit receipts (FDR). Net operating cash flow per share has dropped by 97.5 percent due to lower collection of receivables because of the Covid-19 shutdown from late March.
Moreover, net operating cash flow per share of the first quarter of 2019 reflects a significant amount of collections received on account of pharmaceutical business. Last year, the company's net profit was Tk98.57crore and earnings per share was Tk81.83.
The company has recommended a 530 percent cash dividend this year.
After discontinuation of its pharmaceuticals business in Bangladesh in 2018, GSK Bangladesh continued its operation with consumer healthcare business throughout 2019. During this financial year, the company has increased its focus on brand building, commercial excellence and accelerating innovations.