GlaxoSmithKline Plc (LON:GSK), today announced 3Q results 2018.
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
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Q3 2018 results |
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Q3 2018 |
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Growth |
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9 months 2018 |
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Growth |
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£m |
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£% |
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CER% |
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£m |
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£% |
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CER% |
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Turnover |
8,092 |
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3 |
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6 |
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22,624 |
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– |
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4 |
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Total operating profit |
1,910 |
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2 |
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7 |
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3,929 |
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10 |
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22 |
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Total earnings per share |
28.8p |
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16 |
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23 |
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49.0p |
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15 |
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30 |
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Adjusted operating profit |
2,524 |
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2 |
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6 |
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6,549 |
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– |
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7 |
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Adjusted earnings per share |
35.5p |
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10 |
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14 |
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88.3p |
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4 |
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12 |
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Net cash from operating activities |
2,077 |
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9 |
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4,302 |
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6 |
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Free cash flow |
1,554 |
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21 |
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2,375 |
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42 |
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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.”
