MIRA INFORM REPORT

 

 

Report No. :

337621

Report Date :

21.08.2015

 

IDENTIFICATION DETAILS

 

Name :

GLAXO SMITHKLINE EGYPT SAE

 

 

Formerly Known As :

GSK PHARMACEUTICALS

 

 

Registered Office :

1 Amoun Street Ard El Baraka, El Salam City 30001 Cairo 11491

 

 

Country :

Egypt

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

1981

 

 

Com. Reg. No.:

208407, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Engaged in the manufacture, marketing and export of pharmaceutical products, including vitamins, hormones and organ extracts, pharmaceutical preparations for the cardiovascular system, central and autonomic nervous system, anaesthetics, eye ointments, ophthalmic preparations, throat sprays, antacids and preparations for gastric ulcers, plasma substitutes and inhalants.

 

 

No. of Employee :

1,210

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Egypt

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EGYPT ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 pursued business climate reforms to attract foreign investment and facilitate growth. Poor living conditions and limited job opportunities for the average Egyptian contribute to public discontent, a major factor leading to the January 2011 revolution that ousted Mubarak. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up unemployment. Weak growth and limited foreign exchange earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance and on Gulf allies to help cover the import bill. Egypt's current Constitution passed in a referendum that took place in January 2014.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : GLAXO SMITHKLINE EGYPT SAE

Also Known As                                     : GSK PHARMACEUTICALS

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1981

Commercial Registration Number           : 208407, Cairo

Issued Capital                                       : £E 835,142,000

Paid up Capital                                     : £E 835,142,000

Total Workforce                         : 1,210

Activities                                               : Manufacture, marketing and export of pharmaceutical products.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 

COMPANY NAME

 

GLAXO SMITHKLINE EGYPT SAE

 

 

ALSO KNOWN AS

 

GSK PHARMACEUTICALS

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 1 Amoun Street

Location           : Ard El Baraka, El Salam City

 

PO Box            : 30001

 

Town                : Cairo 11491

Country : Egypt

 

Telephone         : (20-2) 22777124 / 22777000 / 22807000 / 22807100

Facsimile          : (20-2) 22777001 / 26185002 / 22806031

Mobile              : (20-100) 0072952

Email                : mansour.a.meenai@gsk.com / eldin@gsk.com

 

Please note that the correct PO Box number is 30001 and not 3001.

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Boomerang Building, No.46, Block J                                                 Rented Scientific Office

     5th District, Nasr City

     Cairo

     Tel: (20-2) 26185000

     Fax: (20-2) 26185001

 

·       1 Khaled Ibn El Walid Street                                                              Rented Scientific Office

     Masken Sheraton

     Cairo

     Tel: (20-2) 26860334/5/6

 

·       89 Gameat El Dewal El Arabia Street                                                 Rented Scientific Office

     Mohandessin, Giza

     Cairo

     Tel: (20-2) 33367501 / 33367502 / 33367503

     Fax: (20-2) 33388218 / 33388237

 

·       8 Ahmed Farid Street                                                                        Rented Scientific Office

Alexandria

     Tel: (20-3) 5803878 / 5803884

     Fax: (20-3) 5875588

 

·       23 Kaiem Makam Batal Ahmed A. El Aziz Street                                 Distribution Centre

     Kafr Abdu

     Alexandria

     Tel: (20-3) 5427617

     Fax: (20-3) 5428850

 

·       Dr Adel Denour Building                                                                   Rented Scientific Office

Mansoura

     Dakahleya

     Tel: (20-50) 2294572 / 2294573 / 2294574

 

·       Villa El Toshky                                                                                  Rented Scientific Office

     49 El Gomhoureya Street

     Sohag

     Tel: (20-93) 2323130 / 310146

     Fax: (20-93) 2313755

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Dr Amr Mamdouh                                                                             Chairman

 

·       Fouad Ben Ghalem                                                                           Director

 

·       Mounir Ghabbour                                                                              Director

 

·       Tharwat Abd El Shaheed                                                                   Director

 

·       Afdal Naguib                                                                                    Director

 

·       Omar El Asar                                                                                    Director

 

·       Philip Jan Mark                                                                                 Director

 

·       Dr Farid Mansour                                                                              Director

 

·       Mansour Manay                                                                                Finance Manager

 

·       Amr Mariey                                                                                       Technical Manager

 

·       Adel Darwish                                                                                    Factory Manager

 

·       Azza Rostom                                                                                    Production Manager

 

·       Hamdy Zaki                                                                                      Planning Manager

 

·       Tarek Abd El Khalek                                                                          Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1981

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 208407, Cairo

 

Industrial Reg. No.       : 26750

 

Authorised Capital       : £E 1,000,000,000

 

Issued Capital              : £E    835,142,000

 

Paid up Capital            : £E    835,142,000

 

Name of Shareholder (s)                                              Percentage

 

·       Glaxo Smithkline Plc                                                    91.20%

United Kingdom

 

·       National Societe Generale Bank                                      5.89%

5 Champollion Street

Cairo

Tel: (20-2) 27707777

Fax: (20-2) 27707799

 

·       Local businessmen and private investors                        2.91%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture, marketing and export of pharmaceutical products, including vitamins,

hormones and organ extracts, pharmaceutical preparations for the cardiovascular system, central and autonomic nervous system, anaesthetics, eye ointments, ophthalmic preparations, throat sprays, antacids and preparations for gastric ulcers, plasma substitutes and inhalants.

 

Import Countries: United Kingdom

 

Export Countries: Saudi Arabia, Kuwait, Lebanon, and the United Arab Emirates

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,210 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E 000,000’s)

 

Balance Sheet                                       31/12/14            31/12/13           31/12/12            31/12/11

 

Total Current Assets

1055.15

981.35

791.59

798.44

Cash and Short Term Investments

      514.12

310.96

116.19

45.01

Cash

      -

-

-

-

Cash & Equivalents

      514.12

310.96

116.19

45.01

Short Term Investments

      -

-

-

-

Total Receivables, Net

     266.73

362.18

417.45

392.27

Accounts Receivables - Trade, Net

     134.21

132.88

99.1

114.91

Total Inventory

     195.3

237

192

265.88

Prepaid Expenses

      79

71.21

65.95

95.28

Other Current Assets, Total

     -

-

-

-

Total Assets

1465.11

1382.04

1193.92

1190.33

Property/Plant/Equipment, Total – Net

149.46

127

118.7

116.88

Property/Plant/Equipment, Total - Gross

404.54

367.05

343.95

18.91

Accumulated Depreciation, Total

-255.08

-240.05

-225.26

-

Goodwill, Net

238.65

238.65

238.65

238.65

Intangibles, Net

6.1

10.12

14.14

5.84

Long Term Investments

4.99

6.39

3.78

2.72

Note Receivable - Long Term

-

-

-

-

Other Long Term Assets, Total

10.76

18.53

27.05

27.82

Other Assets, Total

-

-

-

-

Total Current Liabilities

   476.2

386.82

203.06

202.55

Accounts Payable

36.94

51.11

38.51

48.97

Payable/Accrued

-

-

-

-

Accrued Expenses

121.77

102.53

96.95

74.02

Notes Payable/Short Term Debt

-

-

-

-

Current Port. of LT Debt/Capital Leases

-

-

-

-

Other Current liabilities, Total

317.49

233.19

67.61

79.55

Total Liabilities

   484.63

396.63

216.39

214.69

Total Long Term Debt

                       -

          -

           -

           -

Long Term Debt

                       -

          -

           -

           -

Capital Lease Obligations

                       -

          -

           -

           -

Total Debt

                       -

          -

           -      

           -

Deferred Income Tax

                      7.98

       9.38

       12.94

       11.76

Minority Interest

                      0.45

       0.42

       0.4

       0.38

Other Liabilities, Total

                      -

       -

       -

       -

Total Equity

980.48

985.41

977.52

975.64

Redeemable Preferred Stock, Total

-

-

-

-

Preferred Stock - Non Redeemable, Net

-

-

-

-

Common Stock, Total

835.14

835.14

835.14

835.14

Additional Paid-In Capital

-

-

-

-

Retained Earnings (Accumulated Deficit)

145.33

150.27

142.38

140.49

Treasury Stock - Common

  -

      -

       -

            -

ESOP Debt Guarantee

  -

      -

       -

            -

Unrealized Gain (Loss)

  -

      -

       -

            -

Other Equity, Total

  -

      -

       -

            -

Total Liabilities & Shareholders' Equity

1465.11

1382.04

1193.92

1190.33

 

Income Statement

 

Total Revenue

1062.06

1041.35

918.11

865.67

Revenue

1062.06                                         

1041.35

918.11

865.67

Other Revenue, Total

                                         -

-

-

-

Cost of Revenue, Total

708.2

660.85

595.08

566.49

Gross Profit

353.86

380.51

323.02

299.18

Total Operating Expenses

947.61

926.2

824.03

754.84

Selling/General/Admin. Expenses, Total

      171.38

191.58

199.77

165.32

Research & Development

       -

-

-

-

Depreciation / Amortization

       -

-

-

-

Interest Expense (Income) - Net Operating

       -

-

-

-

Unusual Expense (Income)

    -0.08

-0.12

0.32

-

Other Operating Expenses, Total

     68.11

73.89

28.85

23.03

Operating Income

114.45

115.16

94.07

110.83

Interest Income (Expense), Net Non-Operating

-3.15

3.81

2.62

-1.58

Gain (Loss) on Sale of Assets

-

-

-

-

Other, Net

-

-

-

10.01

Net Income Before Taxes

111.3

118.97

96.69

119.26

Provision for Income Taxes

47.2

42.18

24.55

34.14

Net Income After Taxes

64.11

76.79

72.14

85.12

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 25703043

Fax: (20-2) 25703172 / 25072691

 

·       HSBC Bank Egypt SAE

     Abu El Feda Building

     3 Abu El Feda Street

     Zamalek

     Cairo

     Tel: (20-2) 27359286 / 27354849

     Fax: (20-2) 27361457

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Glaxo Smithkline Egypt SAE was established in 1981 and has become a market leader in Egypt for the manufacture, marketing and export of pharmaceutical products. It has licence agreements with several well known British producers such as Suppravite, Haemoton, Florest, Apimol and Ablazine.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.23

UK Pound

1

Rs.102.21

Euro

1

Rs.72.57

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.