GSK GSK plc

By Denise Roland 

LONDON-- GlaxoSmithKline PLC said net profit fell in the first quarter of 2016, due to a tough year-earlier comparison which was boosted by proceeds from its three-way transaction with Novartis AG, without that effect, profit rose on cost savings from the same deal.

The U.K.-based pharmaceuticals company said net income for the three months ended March 31 was GBP282 million ($410 million), a fraction of the GBP8.1 billion reported a year earlier.

Core net income, which strips out one-time gains and impairments, increased 15% to GBP959 million, from GBP834 million a year ago. Revenue rose 11% to GBP6.2 billion, up from GBP5.6 billion a year ago. Glaxo beat expectations on both fronts: analysts were expecting core net income of GBP894 million and revenue of GBP6 billion.

Core earnings per share, Glaxo's preferred measure of profit, increased 14% to 19.8 pence. The weakness of the pound versus the dollar boosted Glaxo's results--stripping out exchange rate movements, revenue and core earnings per share increased 8%.

Glaxo also provided more clarity on its 2016 outlook, saying it expected core earnings per share to grow 10%-12% at constant exchange rates. Previously, it had guided for a double-digit increase. The company also confirmed plans to pay a full-year dividend of 80p.

Write to Denise Roland at Denise.Roland@wsj.com

(END) Dow Jones Newswires

April 27, 2016 07:50 ET (11:50 GMT)

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