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GSK delivers another quarter of continued progress

Issued: London, UK

Download full results announcement (PDF)

Summary:

GSK delivers another quarter of continued progress Q1 sales of £7.4 billion, +19% AER, + 5% CER Total EPS of 21.4p >100% AER, >100% CER; Adjusted EPS of 25.0p, +31% AER, +9% CER

Financial highlights

  • Sales growth across all three businesses: Pharmaceuticals £4.2 billion, +17% AER, +4% CER; Vaccines £1.2 billion, +31% AER, +16% CER; Consumer Healthcare £2.0 billion, +16% AER, +2% CER
  • Improved Group operating margin reflecting leverage from sales growth, focus on costs and benefits of restructuring. Pharmaceuticals 34.4%; Vaccines 29.6%; Consumer Healthcare 17.2%
  • Net cash flow from operations of £1.1 billion (Q1 2016: £0.5 billion).  Free cash flow of £0.7 billion
    (Q1 2016: £0.2 billion outflow), primarily reflecting improved operating performance and the net benefit of exchange rate movements
  • 19p dividend declared for Q1 2017.  Continue to expect 80p for FY 2017
  • 2017 Adjusted CER earnings per share guidance maintained

Product and pipeline highlights

  • New product sales of £1.4 billion +72% AER, +52% CER.  On track to deliver £6 billion (CER) sales in 2018
  • Results from MUSCA study demonstrate Nucala significantly improves quality of life and lung function in patients with severe asthma
  • Positive SWORD study presented for two-drug regimen of dolutegravir and rilpivirine for treatment of HIV
  • Positive results reported in-house from ZOSTER-048 study of Shingrix in individuals previously vaccinated with Zostavax*
  • Flonase Sensimist launched in US; second Rx to OTC switch in 3 years

Q1 2017 results

  Q1 2017 Growth  Growth
  £m £% CER%
Turnover 7,384 19 5
Total operating profit 1,718 >100 100
Adjusted operating profit 1,979 30 9
Total earnings per share 21.4 >100 >100
Adjusted earnings per share 25.0 31 9
Net cash from operations 1,144 >100  
Free cash flow 650 >100  

Emma Walmsley, Chief Executive Officer, GSK said:

"This is a positive start for the year with sales growth in all three of our businesses and an improvement in the Group’s operating margin. Our clear focus is on commercial execution and preparation for near-term launches in Respiratory, HIV and Vaccines. We will be reviewing these and other priorities for the business with shareholders alongside our Q2 results on 26 July."

Download full results announcement (PDF)