GlaxoSmithKline Reports Growing Turnover and Profit in 1Q, Beating Market Expectations
May 01 2019 - 7:58AM
Dow Jones News
By Carlo Martuscelli
GlaxoSmithKline PLC (GSK.LN) said Wednesday that pretax profit
rose 17% in the first quarter as the British pharmaceutical major
beat analyst expectations at both the top and bottom line.
Profit before tax for the quarter was 1.30 billion pounds ($1.68
billion), up from GBP1.11 billion the year before, the company
said. Turnover rose 6.1% to GBP7.66 billion, beating analyst
expectations GBP7.54 billion.
The company reported growth across its respiratory, HIV and
immunoinflamation divisions. However, the established
pharmaceuticals saw revenue decline by 5% as sales of its
respiratory drug Advair fell, hit by the introduction of a generic
version of the medicine developed by Mylan NV (MYL).
Adjusted earnings per share--a metric closely watched by
analysts--totaled 30.1 pence, ahead of market expectations of 25.9
pence, based on a FactSet consensus forecast. Glaxo said it
benefited from an improved trading performance, as well as from
bringing its consumer health-care division fully under its control
last year.
The drugmaker said it expects the restructuring program to cost
GBP1.75 billion over the period to 2021, and it is expected to
deliver annual savings of around GBP450 million. These will be
reinvested to fund research and commercially support new products,
it added.
The company reiterated its guidance of a decline in adjusted
earnings per share of between 5% to 9% at constant exchange rates
in 2019.
It declared a quarterly dividend of 19 pence per share, and
continues to expect a full-year dividend of 80 pence.
Glaxo's Chief Executive Emma Walmsley said that integration
planning for the proposed Consumer Healthcare joint venture with
Pfizer Inc. (PFE) is going well.
The transaction is expected to complete in the second half of
the year, she added.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
May 01, 2019 07:43 ET (11:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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