GlaxoSmithKline Net Income Boosted by Strong Sales, Weak Pound
April 26 2017 - 8:14AM
Dow Jones News
By Denise Roland
GlaxoSmithKline PLC said net income ballooned in the first
quarter of the year thanks to strong sales growth of the company's
newer drugs, a boost from a weak pound, and a favorable
year-earlier comparison.
The U.K. drug maker said net profit nearly quadrupled to 1.05
billion pounds in the first three months of the year, compared with
GBP282 million a year ago, when earnings were hurt by a GBP489
million charge related to the re-evaluation of various joint
ventures.
Adjusted operating profit, a measure that strips out one-time
items, rose 30% to GBP1.98 billion, while revenue climbed 19% to
GBP7.38 billion.
Glaxo, which reports in sterling but makes most of its revenue
in other currencies, is benefiting from the weakness of the pound,
which has fallen some 15% against the U.S. dollar and 10% against
the euro since the U.K. voted to leave the European Union on June
23 last year.
Stripping out the currency effect, adjusted operating profit
rose 9% and revenue climbed 5%.
Write to Denise Roland at Denise.Roland@wsj.com
(END) Dow Jones Newswires
April 26, 2017 07:59 ET (11:59 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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