GlaxoSmithKline (GSK) has reported an increase in total operating profit for the third quarter to £1,877m, compared to £1,431m in Q3 2016.
Group turnover increased 4% AER (2% CER) to £7,843m, which it said was primarily due to continued growth in its Pharmaceuticals and Consumer Healthcare businesses.
Turnover for the 9 month period to the end of Q3 increased 11% AER (3% CER) to £22,547m, with growth delivered by all three businesses.
GSK also declared a 19p dividend for quarter, adding that it continues to expect 80p for FY 2017.
The shares were down around 1.5% shortly after today's results announcement.
Emma Walmsley, Chief Executive Officer, said:
"Performance in the quarter showed continued progress with sales growth and improved operating margins.
"This was driven by targeted cost savings and restructuring and integration benefits, which particularly benefited Vaccines and Consumer Healthcare, and also supported investment in our new products and R&D pipeline.
"Adjusted earnings per share for Q3 were 32.5p and we remain on course for our full-year earnings guidance, with cash generation continuing to improve. We are also pleased that we have secured major approvals for Trelegy Ellipta in COPD and Shingrix, our shingles vaccine."
Other financial highlights:
- Sales growth in Pharmaceuticals and Consumer Healthcare; Vaccines sales flat
- Pharmaceuticals sales £4.2 billion +3% AER, +2% CER; Vaccines £1.7 billion +5% AER, flat at CER; Consumer Healthcare £2.0 billion +5% AER, +2% CER
- Improved Total operating margin of 23.9% (+4.9 points, including 0.2 points currency benefit) and EPS (24.8p), primarily reflecting reduced transaction-related charges related to valuations of Consumer Healthcare and HIV businesses
- Improved Adjusted Group operating margin of 31.5% (+1.0 point, no currency effect) primarily reflecting leverage from sales growth, focus on costs and benefits of restructuring. Pharmaceuticals 34.0% (-0.3 points, no currency effect); Vaccines 41.3% (+1.6 points, including 0.3 points adverse currency effect); Consumer Healthcare 20.0% (+3.9 points, including 1.3 points currency benefit)
- YTD free cash flow £1.6 billion (9 months 2016: £1.3 billion)
- Guidance for 2017 Adjusted earnings per share growth maintained at 3% to 5% CER
Product and pipeline highlights:
- New product sales of £1.7 billion, +44% AER, +40% CER, driven by continued strong performance from Tivicay/Triumeq in HIV, Relvar/Breo Ellipta and Nucala in Respiratory and meningitis vaccines
- Trelegy Ellipta approved in the US for COPD and positive opinion received in Europe. Positive results from landmark IMPACT study show benefits of Trelegy Ellipta in reducing COPD exacerbations compared to dual therapies
- Shingrix vaccine for shingles approved in US and Canada
- Phase III results for Nucala (mepolizumab) in COPD published in New England Journal of Medicine with regulatory filings planned for this year
- In Oncology, CHMP PRIME designation granted for 2857916 (BCMA antibody-drug conjugate) for relapsed and refractory multiple myeloma and new data to be presented at an upcoming scientific conference; option exercised from Adaptimmune to develop T-cell therapy (NY-ESO-1) for multiple tumour types
At 1:04pm: (LON:GSK) GlaxoSmithKline PLC share price was -22.75p at 1489.75p