TOP NEWS: GlaxoSmithKline Profit Gets Covid-19 Boost; Aims For Vaccine

(Alliance News) - GlaxoSmithKline PLC on Wednesday said profit rose in the first quarter of the ...

Alliance News 29 April, 2020 | 12:34PM
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(Alliance News) - GlaxoSmithKline PLC on Wednesday said profit rose in the first quarter of the year helped by stock building and higher demand in response to Covid-19 pandemic, with development of a vaccine now its "primary aim".

The FTSE 100-listed drug maker reported a GBP1.84 billion pretax profit for the three months ended March 31, up 42% from GBP1.30 billion the year before. Revenue climbed 19% to GBP9.09 billion from GBP7.66 billion.

Pharmaceuticals revenue increased 6% to GBP4.40 billion, Vaccines revenue rose 19% to GBP1.81 billion, and Consumer Healthcare revenue climbed an impressive 44% to GBP2.86 billion thanks to the inclusion of Pfizer Inc's consumer healthcare portfolio after the formation of a joint venture in August 2019.

Pfizer received a 32% equity stake in the joint venture, with Glaxo holding the rest. Glaxo ultimately plans to spin off Consumer Healthcare, which will be separately listed in London.

Glaxo noted that: "Additional Covid-19 related demand and stock building in Europe and the US had a positive impact on growth."

The company's adjusted earnings per share totalled 37.7 pence for the quarter, up from 30.1p year-on-year.

For now, Glaxo is maintaining its guidance for an annual drop in adjusted EPS of between 1% and 4% at constant currency despite ongoing Covid-19 uncertainty, but said it "will, if needed, update guidance as more information becomes available".

Chief Executive Emma Walmsley said: "Responding to the Covid-19 pandemic is at the heart of our purpose as a company and GSK's portfolio is both highly relevant and needed. We have mobilised efforts across the company and I want to thank all the GSK teams for their outstanding work to make sure our vital medicines, vaccines and everyday health products continue to be available to the people who need them. We have also taken action to deploy our science and technologies. Our primary aim is to develop multiple adjuvanted Covid-19 vaccines, and we are working with companies and institutions across the world to do so.

"Our business performed strongly in the quarter with growth in sales and earnings reflecting good underlying performance and increased demand, including stock-building, for many of our products. Looking ahead, we clearly face a period of considerable uncertainty, but we remain confident in the resilience and sustainability of GSK's business and our ability to deliver on our long-term priorities of innovation, performance and trust."

A 19 pence per share dividend was declared for the quarter, flat from 2019.

Shares in Glaxo were down 0.3% at 1,682.43 pence in London on Wednesday.

By Anna Farley; annafarley@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
GlaxoSmithKline PLC 1,597.40 GBX 1.42

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