GSK Pharma Q1 Review – Below Expectations As Margins Disappoint; Cut Estimates 8%/7%: Motilal Oswal

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GlaxoSmithKline Pharmaceuticals Ltd.’s Q1 FY22 missed expectations due to higher marketing and promotions expenses.

The increased demand, disciplined execution, and enhanced digital capabilities led to superior revenue growth for key brands, including Calpol.

The vaccine business continues to remain subdued due to low vaccination rates.

GSK Pharma’s revenue grew 22% y-o-y to Rs 7.9 billion (estimate-Rs 8.1 billion), led by dermatology, anti-Infectives, and pain/analgesics segment.

Gross margin expanded by 40 basis point y-o-y to 61.7% due to better product mix.

Ebitda margin expanded at a higher rate to 19% due to better operating leverage, with lower employee cost, partially offset by higher other opex (up 100bp y-o-y as a percentage of sales).

Click on the attachment to read the full report:

Motilal Oswal GSK Pharma Q1FY22 Result Update.pdf


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