GlaxoSmithKline reported a 34 percent increase in profit for the third quarter from last year, reflecting strong demand for its new HIV and respiratory products as well as its meningitis vaccines.
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Looking ahead, the company affirmed its earnings outlook for fiscal 2017.
GlaxoSmithKline reported profit before tax for the third quarter of 1.71 billion pounds, up 34 percent from 1.27 billion pounds in the same quarter last year.
Profit attributable to shareholders grew to 1.21 billion pounds from 808 million pounds in the previous year. Earnings per share rose to 24.8 pence from 16.6 pence last year.
Adjusted earnings per share were 32.5 pence, compared to 31.7 pence in the year-ago period.
Total operating profit grew 31 percent to 1.88 billion pounds from 1.43 billion pounds in the prior year, reflecting the reduced impact of accounting charges and an improvement in operating margin.
Group turnover for the quarter increased 4 percent to 7.84 billion pounds from 7.54 billion in the prior-year quarter, reflecting continued growth in Pharmaceuticals and Consumer Healthcare. However, vaccine sales were flat.
Pharmaceuticals sales increased 3 percent, reflecting continued strong growth of the new Respiratory and HIV products such as Tivicay and the new Ellipta portfolio.
This was partly offset by a decline in the older products and the impact of recent divestments.
Vaccines sales grew 5 percent, with a strong performance from Meningitis vaccines and continued delivery from influenza products. At constant exchange rates, vaccine sales were flat with last year.
Looking ahead to fiscal 2017, GSK affirmed its outlook for adjusted earnings per share growth of 3 percent to 5 percent at constant exchange rates.
The company noted that no generics for lung inhaler Advair expected in the U.S. in 2017.
GSK's board declared a third interim dividend for 2017 of 19 pence per share, same with last year.
The company expects to pay an annual ordinary dividend of 80 pence per share for 2017.
For 2018, GSK intends to maintain the dividend for 2018 at the current level of 80 pence per share. ■