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GSK delivers strong Q1: sales £9.1 billion +19% AER, +19% CER (Proforma +10% CER*)

Issued: London, UK

Total EPS 31.5p; +87% AER; +89% CER; Adjusted EPS 37.7p +25% AER, +26% CER

GSK Q1 2020 results infographic and chart

Full results announcement (PDF)

Download the Q1 2020 results announcement

Financial highlights

  • Reported Group sales £9.1 billion +19% AER, +19% CER (Proforma +10% CER*). Pharmaceuticals £4.4 billion +6% AER, +6% CER; Vaccines £1.8 billion +19% AER, +19% CER; Consumer Healthcare £2.9 billion
    +44% AER, +46% CER (Proforma +11% CER*)
  • Sales growth reflects strong underlying performance and additional impact from increased demand including stock building for many products
  • Total Respiratory sales £871 million +38% AER, +38% CER. Trelegy sales £193 million +>100% AER,
    +>100% CER. Nucala sales £210 million +38% AER, +38% CER
  • Total HIV sales £1.2 billion, +8% AER, +8% CER. Two-drug regimen sales £186 million
  • Shingrix sales £647 million +81% AER, +79% CER
  • Total Group operating margin 22.2%. Adjusted Group operating margin 29.4%, reflecting strong operating leverage (Pharmaceuticals 26.9%; Vaccines 47.5%; Consumer Healthcare 26.8%)
  • Total EPS 31.5p +87% AER, +89% CER reflecting good operating performance and an increase in the value of shares in Hindustan Unilever relating to the disposal of Horlicks in India
  • Adjusted EPS 37.7p +25% AER; +26% CER reflecting operating performance and lower tax rate resulting from
    a non-recurring revaluation of deferred tax assets
  • Q1 net cash flow from operations £965 million. Free cash flow £531 million
  • 19p dividend declared for the quarter

Guidance

Based on current assessment of COVID-19, guidance for 2020 Adjusted EPS maintained; to be updated if needed as more information becomes available

Pipeline highlights

  • Zejula submission accepted by FDA and EMA in first-line maintenance treatment for women with ovarian cancer
  • Belantamab mafodotin granted FDA priority review for patients with relapsed or refractory multiple myeloma based on data from the pivotal DREAMM-2 study. PDUFA date set for August 2020
  • Cabenuva, first long-acting regimen for HIV, approved in Canada. Expect submission of reply to FDA Complete Response Letter mid-year
  • Fostemsavir submitted for approval to EMA for the treatment of HIV in adults
  • Multiple collaborations underway to develop adjuvanted vaccines for use against COVID-19, including with Sanofi
  • Agreement with Vir Biotechnology to research and develop solutions for coronaviruses, including using their monoclonal antibody platform technology
GSK Q1 2020 results infographic and chart

Emma Walmsley, Chief Executive Officer, GSK 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.”

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

Assumptions and cautionary statement regarding forward-looking statements​
The Group’s management believes that the assumptions outline in the 2019 Annual Report and relevant quarterly results announcements are reasonable, and that the aspirational targets described in such report or announcement are achievable based on those assumptions are reasonable, and that the aspirational targets described in such report or announcements are achievable based on those assumptions.

However, given the longer term nature of these expectations and targets, they are subject to greater uncertainty, including potential material impacts if the above assumptions are not realised, and other material impacts related to foreign exchange fluctuations, macro-economic activity, the impact of outbreaks, epidemics or pandemics, such as the COVID-19 pandemic and ongoing challenges and uncertainties posed by the COVID-19 pandemic for businesses and governments around the world, changes in regulation, government actions or intellectual property protection, actions by our competitors, and other risks inherent to the industries in which we operate.​

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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 2019 and any impacts of the COVID-19 pandemic. 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 the relevant report or announcement.​

A number of adjusted measures are used to report the performance of our business, which are non-IFRS measures. These measures are defined and reconciliations to the nearest IFRS measure are available in our 2019 Annual Report and in the relevant quarterly results announcement.​

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