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GlaxoSmithKline incurs net loss of £363 mn in Q4, full year profit up by 104%

Our Bureau, Mumbai
Friday, February 9, 2018, 15:30 Hrs  [IST]

GlaxoSmithKline plc., (GSK) has incurred a net loss of £363 million during the fourth quarter ended December 2017 as against a net profit of £317 million in the corresponding period of last year. Its turnover remained stagnant with minor improvement to £7,639 million as against £7,586 million. Earning per share worked out to negative 11.2 pence as against positive 5.3 pence in the last period.

Its pharmaceutical sales declined by one per cent to £4,540 million from £4,575 million and that of vaccines improved by 6 per cent to £1,208 million from £1,137 million in the similar quarter of last year. Consumer healthcare sales improved by one per cent to £1,891 million from £1,874 million. Pharma sales in US declined by 2 per cent £2,032 million and in Europe in increased by one per cent to £1,036 million. Its sales in other markets remained flat at £1,472 million.

For the full year ended December 2017, GSK's turnover increased by 8.2 per cent to £30,186 million from £27,889 million in the previous year. Its net profit has taken a quantum jump of over 104 per cent and reached at £2,169 million from £1,062 million. Its R&D expenditure increased by 23.4 per cent to £4,476 million from £3,628 million. The enactment of new US Tax reforms is expected to have a positive impact on the future after tax earnings of its US business.

Its pharmaceutical sales increased by 7 per cent to £17,276 million and that of vaccines moved up by 12 per cent to £5,160 million. The sales from consumer healthcare improved by 8 per cent to £7,750 million from £7,193 million. Pharma sales in US declined by 2 per cent to £2,032 million and that in Europe improved marginally one per cent to £1,036 million. International pharma sales remained flat at £1,472 million. Vaccines sales in US moved up by 17 per cent to £1,869 million and same in Europe increased by 12 per cent to £1,600 million. The sales of vaccines in the other international market increased by 8 per cent to £1,691 million.

GSK's total US sales increased by 10 per cent to £11,262 million due to higher sales of Triumeq and Tivicay and growth in the respiratory portfolio. Its European sales moved up by 6 per cent to £7,943 million. Its international total sales improved by 7 per cent to £10,980 million.

Emma Walmsley, CEO, said, “In 2017 GSK delivered encouraging results from across the company with sales growth in each of our three global businesses, an improved Group operating margin, adjusted EPS growth of 4 per cent and stronger free flow. We are focused on competing effectively across our current portfolio and delivering three new launches which bring significant benefits to patients.”

“Improving our pharmaceuticals business remains our main priority and we are strengthening our pipeline with a focus on priority assets in two current therapy areas, respiratory and HIV, and tow potential areas, oncology and immuno-inflammation.”  

“Looking ahead, in 2018 we could see a potential generic version of Advair in the US and our 2018 guidance reflects this. With the sales momentum we anticipate from new and recent launches and focused improvements in operating performance we are increasingly confident in our ability to deliver mid to high single digit growth in Adjusted EPS CAGR,” he added.

The group expects to make continued progress in 2018, although the expectation for adjusted EPS growth is impacted by number of factors including, in particular, uncertainties relating to the timing and extent of potential generic competition to Advair in the US.

 

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