GlaxoSmithKline annual profit rises 36%; warns of earnings decline in 2019

Writer, Stock Market Wire
Wednesday, February 6, 2019 - 13:12

GlaxoSmithKline posted a 36% rise in pre-tax profit, underpinned higher sales of its shingles vaccine and respiratory disease treatments, but warned of lower earnings in 2019.

Pre-tax profit for the year through December rose to £4.80bn, as sales climbed 2% to £30.82bn, or by 5% on a constant currency basis.

Adjusted earnings per share rose 7% to 119.4p, or by 12% on a constant currency basis, assisted by improved operating margin and continued financial efficiencies, the company said.

For 2019, GlaxoSmithKline forecast EPS to decline by 5-9% in constant currency, reflecting recent approval of a generic competitor to respiratory disease treatment Advair in the US.

The guidance also reflected the expected impact of the recent Tesaro acquisition and assumed the consumer healthcare disposal and JV with Pfizer was completed to plan.

In 2018, shingles vaccine sales more than doubled to £784m, while total new respiratory product sales rose 35% to £2.6bn.

GlaxoSmithKline declared a full-year dividend of 80p a share, which it forecast to remain flat in 2019.

'GSK delivered improved operating performance in 2018 with group sales growth, strong commercial execution of new product launches, especially Shingrix, continued cost discipline and better cash generation,' chief executive Emma Walmsley said.

At 1:12pm: (LON:GSK) GlaxoSmithKline PLC share price was +10.8p at 1533.4p

Related content

FTSE 100 down to five female CEOs as Laury prepares to leave Kingfisher

When Kingfisher boss Véronique Laury steps down on 25 September she will become the tenth FTSE 100 CEO to do so this year, with...

Wed, 18/09/2019 - 10:43

Broker Forecast - Deutsche Bank issues a broker note on GlaxoSmithKline PLC

Deutsche Bank today reaffirms its hold investment rating on GlaxoSmithKline PLC (LON:GSK) and raised its price target to 1645p (from 1620p).

Broker Forecasts data provided...

Mon, 02/09/2019 - 08:50

Temple Bar could outperform if markets turn sour


Investors seeking a portfolio of cheap, dividend-paying stocks and selling on a 6.3% discount to net asset value (NAV) should look to Temple Bar Investment...

Thu, 29/08/2019 - 00:00

GlaxoSmithKline blood cancer treatment meets primary objective in clinical trial

GlaxoSmithKline said a clinical study of its blood cancer treatment had met its primary goal.

'The two-arm study met its primary objective and demonstrated...

Fri, 23/08/2019 - 07:16

GlaxoSmithKline's JV ViiV Healthcare says trial of injectable HIV treatment met objectives

ViiV Healthcare, a GlaxoSmithKline-Pfizer joint venture, said its injectable HIV treatment had met its primary goal in a clinical trial, reducing the number of treatments...

Thu, 22/08/2019 - 07:41