Q1 result: GSK delivers another quarter of continued progress

Summary:

Financial highlights

  • Sales growth across all three businesses: Pharmaceuticals £4.2 billion, +17% AER, +4% CER; Vaccines £1.2 billion, +31% AER, +16% CER; Consumer Healthcare £2.0 billion, +16% AER, +2% CER
  • Improved Group operating margin reflecting leverage from sales growth, focus on costs and benefits of restructuring. Pharmaceuticals 34.4%; Vaccines 29.6%; Consumer Healthcare 17.2%
  • Net cash flow from operations of £1.1 billion (Q1 2016: £0.5 billion).  Free cash flow of £0.7 billion (Q1 2016: £0.2 billion outflow), primarily reflecting improved operating performance and the net benefit of exchange rate movements
  • 19p dividend declared for Q1 2017.  Continue to expect 80p for FY 2017
  • 2017 Adjusted CER earnings per share guidance maintained

Product and pipeline highlights

  • New product sales of £1.4 billion +72% AER, +52% CER.  On track to deliver £6 billion (CER) sales in 2018
  • Results from MUSCA study demonstrate Nucalasignificantly improves quality of life and lung function in patients with severe asthma
  • Positive SWORD study presented for two-drug regimen of dolutegravir and rilpivirine for treatment of HIV
  • Positive results reported in-house from ZOSTER-048 study of Shingrix in individuals previously vaccinated with Zostavax*

Emma Walmsley, Chief Executive Officer, GSK said:

"This is a positive start for the year with sales growth in all three of our businesses and an improvement in the Group’s operating margin. Our clear focus is on commercial execution and preparation for near-term launches in Respiratory, HIV and Vaccines. We will be reviewing these and other priorities for the business with shareholders alongside our Q2 results on 26 July."