REG - GlaxoSmithKline PLC - GSK - segment and product sales reporting changes

GSKAnnouncement

01/04/2022 11:30

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RNS Number : 9686G  GlaxoSmithKline PLC  01 April 2022

  Issued: 1 April 2022, London, U.K.

 GSK publishes segment and product sales reporting changes

 

 GlaxoSmithKline plc ("GSK") keeps its financial reporting under regular review
 to ensure that it remains current and in line with both the latest regulatory
 requirements and developing best practice within the Pharmaceutical industry.

 Revised reporting segments for Pharmaceuticals and Vaccines

 GSK announced at the Investor Update on 23 June 2021 that revised reporting
 segments for new GSK would be presented from the first quarter 2022 results.
 The new operating segments are reported based on the financial information
 provided to the Chief Executive Officer and the responsibilities of the GSK
 Leadership Team (GLT).

 Previously, GSK reported results under four segments: Pharmaceuticals;
 Pharmaceuticals R&D; Vaccines and Consumer Healthcare. From the first
 quarter 2022 results GSK will report results under three segments on the
 following basis:

 ·      The Commercial Operations segment includes the results that were
 previously reported under the Pharmaceuticals segment and the Vaccines segment
 but now excludes expenditure related to research & development included in
 the segment below. This change reflects the closer integration and management
 of the commercial, manufacturing and other operations of the Pharmaceutical
 and Vaccines portfolio. The Commercial Operations segment continues to include
 the ViiV Healthcare commercial operating profit. The research and development
 managed expenditure related to ViiV Healthcare (previously reported within the
 Pharmaceuticals segment) and Vaccines (previously reported within the Vaccines
 segment) will be reported as part of the Research and Development segment. The
 Commercial Operations segment will also include the Group's global health
 initiatives that were previously separately reported through the
 Pharmaceuticals R&D and Vaccines segments as well as within Corporate and
 other unallocated costs;

 ·      The Research and Development segment includes the costs
 previously reported under the Pharmaceuticals R&D segment. The segment
 will also include the research and development managed expenditure related to
 ViiV Healthcare (previously reported within the Pharmaceuticals segment) and
 Vaccines (previously reported within the Vaccines segment). The new segment
 reflects the changes that have been made to the management of research,
 development and other related costs (such as regulatory and administration
 costs) through the "One R&D" organisational changes. The Research and
 Development segment now excludes costs related to the Group's global health
 initiatives;

 ·      The Consumer Healthcare segment will be reported as a "Continuing
 operation" operating segment until such time as the formal criteria for
 treating Consumer Healthcare as a 'Discontinued operation' have been satisfied
 (currently expected in Q2 2022).  We will consolidate the business for
 reporting purposes until the demerger has completed.

 Corporate and other unallocated costs include the costs of corporate functions
 that are not managed by and are not the responsibility of the operating
 segments.

 The revised segment turnover and operating profit tables below set out the new
 operating segments that will be used from the first quarter 2022 results, as
 applied to the 2021 quarterly reported turnover and profits.

 Product sales to be reported within three product groups - Specialty
 Medicines, General Medicines and Vaccines

 GSK will report product sales within three product groups from the first
 quarter 2022 results:

 ·      Specialty Medicines products will include GSK's marketed products
 for HIV, oncology, immuno-inflammation, respiratory and other specialty
 medicines (including Nucala) and the pandemic solution, Xevudy;

 ·      General Medicines products, which include products previously
 reported as Established Pharmaceuticals and sales of Trelegy Ellipta and Anoro
 Ellipta (previously reported within the Respiratory category under Specialty
 products). These products are typically accessed by patients through primary
 care settings;

 ·      Vaccines products, including sales of GSK's AS03 adjuvant as part
 of the pandemic solutions.

 Disclosure of Consumer Healthcare category for brands divested and under
 review to be removed

 Following the completion of the Consumer Healthcare brand divestment programme
 in the first quarter 2021, the sales of the remaining products that were
 reported under the brands divested and under review category and which have
 not been divested will be reported under their original category again from
 the first quarter 2022 results. In addition, the sales of the brands divested
 in the first quarter 2021 will also not be reported in the separate brands
 divested category for the comparative periods of 2021.

 As a result of these changes, from the first quarter 2022 the presentation of
 a separate category for brands divested and under review will no longer be
 required.

 The revised turnover tables below set out the revised format for reporting
 sales that will be used from the first quarter 2022 results, as applied to the
 2021 quarterly reported product sales.

 An Excel version of this data is available on www.gsk.com.

 

 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 (http://www.gsk.com)

 

 Analyst/Investor enquiries:  Nick Stone         +44 (0) 7717 618834  (London)
                              James Dodwell      +44 (0) 7881 269066  (London)
                              Mick Readey        +44 (0) 7990 339653  (London)
                              Joshua Williams    +44 (0) 7385 415719  (London)
                              Jeff McLaughlin    +1 215 589 3774      (Philadelphia)
                              Frances De Franco  +1 570 236 4850      (Philadelphia)
                              Sonya Ghobrial     +44 (0) 7392 784784  (Consumer)
                              Rakesh Patel       +44 (0) 7552 484646  (Consumer)
                              Emma White         +44 (0) 7823 523562  (Consumer)

 

 Cautionary statement regarding forward-looking statements

 GSK cautions investors that any forward-looking statements or projections made
 by GSK, including those made in this announcement, are subject to risks and
 uncertainties that may cause actual results to differ materially from those
 projected. Such factors include, but are not limited to, those described in
 the Company's Annual Report on Form 20-F for 2021, and any impacts of the
 COVID-19 pandemic.

 

 

 Brand names

 Brand names appearing in italics throughout this document are trademarks of
 GSK or associated companies or used under licence by the Group.

 This Announcement does not constitute statutory accounts of the Group within
 the meaning of sections 434(3) and 435(3) of the Companies Act 2006.  The
 information for 2021 has been derived from the full Group accounts published
 in the Annual Report 2021.

 

 

 Registered in England & Wales:

 No. 3888792

 Registered Office:

 980 Great West Road

 Brentford, Middlesex

 TW8 9GS

 

 

Revised format for reporting segment turnover and operating profit

 

 Turnover by segment

 

                        Q1 2021      Q2 2021      Q3 2021      Q4 2021      Full Year

                        £m           £m           £m           £m           £m

 Commercial Operations  5,106        5,800        6,571        7,030        24,507
 Consumer Healthcare    2,312        2,292        2,506        2,497        9,607

 Total turnover         7,418        8,092         9,077       9,527        34,114

 

 

 Operating profit by segment

 

                                              Q1 2021      Q2 2021      Q3 2021      Q4 2021      Full Year

                                              £m           £m           £m           £m           £m

 Commercial Operations                        2,451        2,871        3,455        2,701        11,478
 Research and Development                     (1,030)      (1,119)      (1,139)      (1,281)      (4,569)
 Consumer Healthcare                          535          498          648          558          2,239

 Segment profit                               1,956        2,250        2,964        1,978        9,148
 Corporate and other unallocated costs        (75)         (92)         (90)         (85)         (342)

 Adjusted operating profit                    1,881        2,158        2,874        1,893        8,806
 Adjusting items                              (188)        (483)        (936)        (998)        (2,605)

 Total operating profit                       1,693        1,675        1,938        895          6,201

 Finance income                               10           7            7            4            28
 Finance costs                                (201)        (192)        (200)        (191)        (784)
 Loss on disposal of interests in associates  -            (36)         -            -            (36)
 Share of after tax profits of associates     16           16           3            (2)          33

   and joint ventures

 Profit before taxation                       1,518        1,470        1,748        706          5,442

 

 

 Commercial Operations turnover

 

                                             Q1 2021      Q2 2021      Q3 2021      Q4 2021      Full Year

                                             £m           £m           £m           £m           £m

 HIV                                         1,031        1,235        1,251        1,260        4,777
 Oncology                                    110          119          128          132          489
 Immuno-inflammation, respiratory and other  434          525          526          558          2,027
 Pandemic                                    -            -            114          828          958
 Specialty Medicines                         1,575        1,879        2,019        2,778        8,251

 Respiratory                                 1,492        1,514        1,492        1,550        6,048
 Other General Medicines                     815          836          886          893          3,430
 General Medicines                           2,307        2,350        2,378        2,443        9,478

 Meningitis                                  190          225          352          194          961
 Influenza                                   18           33           384          244          679
 Shingles                                    327          295          502          597          1,721
 Established vaccines                        689          758          841          682          2,970
 Pandemic                                    -            260          95           92           447
 Vaccines                                    1,224        1,571        2,174        1,809        6,778

 Total Commercial Operations turnover        5,106        5,800        6,571        7,030        24,507

 

 Consumer Healthcare turnover

 

                                     Q1 2021      Q2 2021      Q3 2021      Q4 2021      Full Year

                                     £m           £m           £m           £m           £m

 Oral health                         695          663          702          672          2,732
 Pain relief                         548          563          588          582          2,281
 Vitamins, minerals and supplements  349          359          406          398          1,512
 Respiratory health                  244          212          330          357          1,143
 Digestive health and other          476          495          480          488          1,939

                                     2,312        2,292        2,506        2,497        9,607

 

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