GlaxoSmithKline Pharmaceuticals' net profit up 16.3 pc in CY'06

Mumbai, Feb 16 (UNI) GlaxoSmithKline Pharmaceuticals has posted a 16.3 per cent growth in the net profit for the year ended December 31, 2006 to Rs 555.95 crore as compared to Rs 477.91 crore in the previous year.

However, after excluding the financials of the Animal Health business which was divested during the year, the growth in net sales of the continuing businesses, mainly pharmaceuticals, works out to 9.3 per cent and in Profit before Tax and Exceptional Items is 20.6 per cent, said a company press release.

The GSK Board recommended a dividend of Rs 17 per equity share for the year (previous year Rs 14 per equity share). If approved by the shareholders at the Annual General Meeting, the dividend will absorb Rs 144 crore inclusive of the Dividend Distribution Tax.

With additional cash generation from the divestment of Animal Health business, the directors opined that a portion of the surplus cash be returned to shareholders. The Board, therefore, recommended a special additional one-time dividend of Rs 14 per equity share. If approved by the shareholders at the Annual General Meeting, the special additional dividend will absorb Rs 118.58 crore inclusive of the Dividend Distribution Tax.

Commenting on the performance, Dr Hasit B Joshipura, Managing Director, GlaxoSmithKline Pharmaceuticals said, ''The Company posted double-digit growth in the topline during last quarter of 2006.

This accelerated growth needs to be viewed on the backdrop of the industry growth fuelled by epidemics in the peninsular region which increased sales of formulations on pain, anti-infectives and gastro-intestinal. Procurement efficiencies and tight expense control also contributed to the entity's profit growth during the year.'' UNI