GlaxoSmithKline Sees 2% Forex Revenue Gain In Fourth Quarter

LONDON (Alliance News) - GlaxoSmithKline PLC on Friday said currency movements will positively ...

Alliance News 11 January, 2019 | 1:42PM
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LONDON (Alliance News) - GlaxoSmithKline PLC on Friday said currency movements will positively impact fourth quarter performance but will dent 2018 revenue and adjusted earnings per share.

In a pre-quarterly results communication document, Glaxo said average exchange rates in the fourth quarter of 2018, per pound sterling, stood at USD1.27, EUR1.13, and JPY144.

Based on the average exchange rate, the FSTE100 listed pharma company is predicting a foreign exchange boost of 2% to fourth quarter sales.

The company, however, expects currency movements to provide greater boost to fourth quarter adjusted earnings per share than to sales due to "the mix of currency movements relative to the mix of costs". Glaxo did not provide a percentage impact on fourth quarter adjusted earnings per share.

In the first three quarters of 2018, however, Glaxo recorded a 4% negative impact from foreign exchange movements.

Foreign exchange rates is expected to have an overall 3% detrimental effect on sales, the company said. As with the fourth quarter, the negative impact of foreign exchange on adjusted earnings per share for 2018 as a whole is likely to be worse than its effect on sales.

Average rates for 2018 for the company stood at GBP1.33, EUR1.13, and JPY147 per pound sterling.

Glaxo will release its fourth quarter results on February 6. Shares in the company were down 0.9% at 1,522.40 pence on Friday.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
GlaxoSmithKline PLC 1,650.42 GBX -0.61
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