GSK delivers Q3 sales of £8.1 billion, +3% AER, +6% CER
Issued: London, UK
Total EPS 28.8p, +16% AER, +23% CER; Adjusted EPS 35.5p, +10% AER, + 14% CER
Financial highlights
- Group sales £8.1 billion. Pharmaceuticals £4.2 billion, +1% AER, +3% CER; Vaccines £1.9 billion, +14% AER, +17% CER; Consumer Healthcare £1.9 billion, -1% AER, +3% CER
- Adjusted Group operating margin of 31.2%, -0.3 percentage points AER; +0.2 percentage points CER. Pharmaceuticals 32.2%; Vaccines 43.0%; Consumer Healthcare 22.0%
- Total EPS 28.8p +16% AER, +23% CER
- Adjusted EPS 35.5p +10% AER, +14% CER
- YTD free cash flow £2,375 million (2017: £1,668 million)
- 19p dividend declared for the quarter. Continue to expect 80p for FY 2018
- Now expect 2018 Adjusted EPS growth of 8-10% CER
Product and pipeline highlights
- Total New Respiratory product sales £645 million, +39% AER, +40% CER;
Ellipta sales £500 million, +34% AER, +35% CER; Nucala £145 million, +59% AER, +62% CER - Tivicay and Triumeq sales £1.1 billion +12% AER, +13% CER. Juluca sales £37 million
- Shingrix sales £286 million. Now expect £700-750 million sales for FY 2018
- New two-drug regimen dolutegravir (DTG) and lamivudine (3TC) for HIV filed in US and Europe
- Positive phase III study results received for new HIV therapy cabotegravir+rilpivirine (FLAIR/ATLAS)
- Clinical study initiated for use of BCMA in second line treatment of multiple myeloma
- New phase II efficacy and safety data for aGM-CSF in rheumatoid arthritis presented at ACR and supports further clinical development
- R&D prioritisation continues with resources reinvested in priority projects following termination of several pipeline programmes as data thresholds not met
- Positive phase II data for candidate TB vaccine published in NEJM
Emma Walmsley, Chief Executive Officer, GSK said:
“GSK has made further good progress this quarter with CER sales growth in all three businesses, improvements in the Group operating margin at CER and Adjusted earnings per share growth of 14% (CER). Strong commercial execution for key products and new launches, notably Shingrix, together with an effective focus on cost control is driving this improved performance and we now expect 2018 Adjusted EPS growth of 8-10% at CER. Looking further ahead, we remain confident in our ability to deliver the Group outlooks for sales and EPS growth we previously set for the period 2016-2020.”
About GSK
GSK – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com/about-us.
Cautionary statement regarding forward-looking statements
This document contains statements that are, or may be deemed to be, “forward-looking statements”. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should, however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements.
Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group’s control or precise estimate. The Group cautions investors that a number of important factors, including those in this document, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under Item 3.D ‘Risk Factors’ in the Group’s Annual Report on Form 20-F for 2017. Any forward looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this report.
