GlaxoSmithKline 1Q Earnings, Revenue Beat Expectations -- Update
April 27 2022 - 03:29AM
Dow Jones News
By Cecilia Butini
GlaxoSmithKline PLC on Wednesday posted higher earnings and
revenue for the first quarter, beating expectations as sales rose
across the biopharma and consumer healthcare businesses.
Net profit at the British pharmaceutical major came in at 1.80
billion pounds ($2.26 billion) for the quarter, up from GBP1.07
billion in the same quarter a year prior. Revenue grew to GBP9.78
billion, compared with GBP7.41 billion in the first quarter of
2021. A company-provided consensus had seen net profit coming in at
GBP1.51 billion and revenue at GBP9.15 billion.
Earnings per share were 35.6 pence in the quarter, a jump from
21.3 pence in the same quarter the year prior. Adjusted earnings
per share--a closely-watched metric--were 32.8 pence, which the
company said is 43% higher than the year prior.
Turnover was boosted by the pandemic recovery of bestselling
shingles vaccine Shingrix, recovery in the antibiotics market and
sales of Covid-19 treatment Xevudy, the company said.
Shingrix sales more than doubled in the quarter, Glaxo said. The
company continues to expect strong demand for the shot, though it
acknowledged the potential for continued disruptions due to the
pandemic, which could mean governments would prioritize Covid-19
vaccination programs to the detriment of other adult
immunizations.
Glaxo confirmed its guidance for 2022, saying it expects to
deliver sales growth of between 5% and 7% at constant exchange
rates, and adjusted operating profit growth of between 12% and 14%
at constant exchange rates. The guidance excludes contribution from
Covid-19 solutions, the company said. The Covid-19 business is
expected to contribute similar sales levels to 2021, but with
substantially reduced profit contributions, the company said. This
is due to an increased proportion of Xevudy sales, which have a
lower margin. This is expected to reduce adjusted operating profit
growth, including Covid-19 solutions, by between 5% to 7%, Glaxo
said.
It reiterated that it is on track to demerge and list its
consumer-healthcare business, named Haleon, in July.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
April 27, 2022 03:14 ET (07:14 GMT)
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