REG - GlaxoSmithKline PLC - 1st Quarter Results <Origin Href="QuoteRef">GSK.L</Origin> - Part 2
15/07/2015 16:19
- Part 2: For the preceding part double click ID:nRSF3482Ma
to £1,885 million
and represented a total effective tax rate of 19.0% (Q1 2014: 20.4%), reflecting the differing tax effects of the various non-core items. See 'Taxation' on page 36 for further details. Total EPS was 167.8p, compared with 13.9p in Q1 2014, primarily reflecting the profits on disposal of the Oncology business and the Aspen Pharmacare shares, partly offset by the increase in the liability for the contingent consideration for the acquisition of the former Shionogi-ViiV Healthcare joint venture.
Cash generation and conversion
Cash flow and net debt
Q1 2015 Q1 2014
Net cash inflow from operating activities (£m) 370 927
Adjusted net cash inflow from operating activities* (£m) 532 968
Free cash flow* (£m) (69) 467
Adjusted free cash flow* (£m) 93 508
Free cash flow growth (%) >(100)% (40)%
Free cash flow conversion* (%) 1% 67%
Net debt (£m) 8,098 13,660
* Adjusted net cash inflow from operating activities, free cash flow, adjusted free cash flow and free cash flow conversion are defined on page 26.
The net cash inflow from operating activities for the quarter was £370 million (Q1 2014: £927 million). Excluding legal settlements of £162 million (Q1 2014: £41 million), the adjusted net cash inflow from operating activities was £532 million (Q1 2014: £968 million), a 45% decrease compared with 2014. This primarily reflected the combined impact of lower operating profits and increased cash outflows on restructuring items. Free cash flow was £(69) million for the quarter. Excluding legal payments,
adjusted free cash flow was £93 million (Q1 2014: £508 million). The decrease primarily reflected the combined impact of lower operating profits and increased cash outflows on restructuring items. The Group paid dividends to shareholders of £924 million. Free cash flow conversion was impacted by the profits on disposal of the Oncology business and the Aspen stake. At 31 March 2015, net debt was £8.1 billion, compared with £14.4 billion at 31 December 2014, comprising gross debt of £18.5 billion and cash
and liquid investments of £10.4 billion. The decrease in net debt reflected the impact of the Novartis transaction in which GSK sold its Oncology business for net cash proceeds of £10.1 billion and paid £3.3 billion to acquire the Novartis businesses. Tax liabilities on the transaction are yet to be settled. In addition, GSK sold 6.2% of its shareholding in Aspen for cash proceeds of £564 million, reducing the shareholding from 12.4% to 6.2%. At 31 March 2015, GSK had short-term borrowings (including
overdrafts) repayable within 12 months of £3,240 million with no loans repayable in the subsequent year.
Working capital
31 March 31 December 30 September 30 June 31 March
2015 2014 2014 2014 2014
Working capital conversion cycle* (days) 215 209 216 208 205
Working capital percentage of turnover (%) 24 22 24 22 22
* Working capital conversion cycle is defined on page 26.
During the quarter, working capital was significantly impacted by the Novartis transaction which increased the working capital conversion cycle by 11 days. This principally resulted from inventory acquired with the former Novartis Vaccines business. The increase was partly offset by a six day reduction in the cycle from favourable exchange effects. The conversion cycle of the underlying businesses increased by one day from the position at 31 December 2014.
Returns to shareholders
GSK expects to pay an annual ordinary dividend of 80p for each of the next three years (2015-2017). GSK also plans to return approximately £1 billion (20p per share) to shareholders via a special dividend to be paid alongside GSK's Q4 2015 ordinary dividend payment. Any future returns to shareholders of surplus capital will be subject to the Group's strategic progress, visibility on the put options associated with ViiV Healthcare and the Consumer Healthcare joint venture and other capital requirements.
Quarterly dividendsThe Board has declared a first interim dividend of 19 pence per share (Q1 2014: 19 pence per share). Payment of dividendsThe equivalent interim dividend receivable by ADR holders will be calculated based on the exchange rate on 7 July 2015. With effect from and including this dividend, an annual fee of $0.02 per ADS (or $0.005 per ADS per quarter) will be charged by the Depositary. The ex-dividend date will be 14 May 2015 (13 May 2015 for ADR holders), with a record date of 15 May 2015
and a payment date of 9 July 2015.
Paid/ Pence per £m
payable share
2015
First interim 9 July 2015 19 918
2014
First interim 10 July 2014 19 916
Second interim 2 October 2014 19 918
Third interim 8 January 2015 19 924
Fourth interim 9 April 2015 23 1,114
80 3,872
GSK made no share repurchases during the quarter. The company issued 2.0 million shares under employee share schemes amounting to £28 million (Q1 2014: £81 million). The weighted average number of shares for Q1 2015 was 4,820 million, compared with 4,802 million in Q1 2014.
Segmental performance
Global Pharmaceuticals Q1 2015 Q1 2015
£m Reported Pro-forma
growth growth
CER% CER%
US 1,019 (23) (21)
Europe 815 (7) (3)
International 1,243 (5) (4)
3,077 (12) (10)
Q1 2015
£m Growth
CER%
Respiratory 1,408 (9)
Oncology 216 (18)
Cardiovascular, metabolic and urology 218 (8)
Immuno-inflammation 60 19
Other pharmaceuticals 525 (9)
Established Products 650 (20)
3,077 (12)
Respiratory Q1 2015 (£1,408million; down 9%)Respiratory sales in the quarter declined 9% to £1,408 million. Seretide/Advair sales were down 14% to £898 million, Flixotide/Flovent sales decreased 22% to £153 million and Ventolin sales fell 9% to £161 million. Relvar/Breo Ellipta recorded sales of £41 million and Anoro Ellipta, now launched in the US, Europe and Japan, recorded sales of £12 million in the quarter. In the US, Respiratory sales declined 22% to £583 million in the quarter (1% volume growth and
a 23% negative impact of price and mix). The negative price and mix impact reflects new contracts agreed in 2014 in response to competitive pressures in both the ICS/LABA combination market, where Advair and Breo Ellipta compete, and also the LABA/LAMA combination market, where Anoro Ellipta is marketed. Sales of Advair were down 21% (3% volume decline and an 18% negative impact of price and mix). Flovent sales were down 38% to £83 million and Ventolin sales fell 24%. The reported declines for both
Flovent and Ventolin reflected the net negative impact of true up adjustments to accruals for returns and rebates recorded in both Q1 2014 and Q1 2015. Excluding the impact of true up adjustments and stocking patterns, on an estimated underlying basis Flovent sales declined 6% while Ventolin grew 13%. Breo Ellipta recorded sales of £14 million, and Anoro Ellipta, launched in Q2 2014, recorded sales of £9 million in the quarter. European Respiratory sales were down 4% to £392 million, with Seretide sales
down 11% to £291 million (4% decline in volume and a 7% negative impact of price), reflecting increasing competitive pressures and the transition of the Respiratory portfolio to the newer products. Relvar Ellipta, approved in Europe for both COPD and asthma, recorded sales of £16 million in the quarter, while Anoro Ellipta, with launches now underway in many countries throughout the region, recorded sales of £2 million. Respiratory sales in the International region grew 5% to £433 million with Emerging
Markets up 7% and Japan up 1%. In Emerging Markets, sales of Seretide increased 6% to £125 million, while Ventolin grew 8% to £46 million. In Japan, the sales of Relvar Ellipta of £9 million in the quarter, together with strong growth in Veramyst and Xyzal sales, more than offset the 27% decline in Adoair as a result of comparison with a strong Q1 2014 which benefited from wholesaler stocking. Oncology Q1 2015 (£216million;down 18%)Oncology sales for the first two months were £216 million, down 18% on a
reported basis compared with Q1 2014, but up 25% on a pro-forma basis. Cardiovascular, metabolic and urology Q1 2015 (£218million; down8%)Sales in the category fell 8% to £218 million. The Avodart franchise fell 7% to £179 million, with 13% growth in sales of Duodart/Jalyn offset by a 15% decline in sales of Avodart. Sales of Prolia decreased 33% to £9 million, due to the agreement in Q2 2014 with Amgen to terminate the joint commercialisation in a number of European markets, Mexico and Russia. Immuno
-inflammation Q1 2015 (£60million;up 19%)Immuno-inflammation sales grew 19% to £60 million. Benlysta turnover in the quarter was £51 million, up 23%. In the US, Benlysta sales were £46 million, up 26%. Other pharmaceuticals Q1 2015 (£525million; down9%)Sales in other therapy areas fell 9% to £525 million. Augmentin sales declined 3% to £140 million and Dermatology sales declined 11% to £109 million both impacted by supply constraints due to capacity limitations. Relenza sales were down 25% to £30
million in the quarter reflecting Japanese government stockpiling in Q1 2014 which was not repeated in Q1 2015. Sales of products for Rare diseases declined 10% to £91 million, primarily as a result of generic competition to Mepron in the US. Established Products Q1 2015 (£650million; down 20%)Established Products turnover fell 20% to £650 million. Sales in the US were down 42% to £163 million, primarily attributable to a 75% fall in sales of Lovaza to £28 million, due to generic competition which began
in April 2014 and has intensified during 2015. Europe was down 14% to £132 million with Seroxat sales falling 33% to £8 million, reflecting increased generic competition to a number of other products and a number of supply constraints. International was down 8% to £355 million, primarily reflecting lower sales of Seroxat/Paxil due to generic competition in Japan and some supply constraints, together with the impact of competitive and price pressures to Zeffix and Hepsera in China.
ViiV Healthcare Q1 2015 Q1 2015
£m Reported Pro-forma
growth growth
CER% CER%
US 229 66 66
Europe 154 35 35
International 63 9 9
446 42 42
Q1 2015
£m Growth
CER%
Epzicom/Kivexa 176 2
Selzentry 30 (9)
Tivicay 112 >100
Triumeq 81 -
Other 47 (33)
446 42
Q1 2015 (£446million;up 42%)ViiV Healthcare sales increased 42% in the quarter, with the US up 66%, Europe up 35% and International up 9%. The growth in all three regions was driven by Tivicay and Triumeq. The ongoing roll-out of Tivicay resulted in sales of £112 million and Triumeq, now launched in the US and much of Europe recorded sales of £81 million in the quarter. Epzicom/Kivexa, which benefited from use in combination with Tivicay, increased 2% to £176 million, but Selzentry sales fell 9% to £30
million. There were also continued declines in the mature portfolio, mainly driven by generic competition to both Combivir, down 38% to £10 million, and Lexiva, down 27% to £16 million.
Vaccines Q1 2015 Q1 2015
£m Reported Pro-forma
growth growth
CER% CER%
US 217 14 11
Europe 224 4 (3)
International 258 13 3
699 10 3
Q1 2015 Q1 2015
£m Reported Pro-forma
growth growth
CER% CER%
Rotarix 98 14 14
Synflorix 60 7 7
Fluarix, FluLaval 4 (63) (63)
Bexsero 7 - >100
Menveo 11 - -
Boostrix 66 7 7
Infanrix, Pediarix 186 (6) (6)
Hepatitis 143 17 17
Cervarix 28 (14) (14)
Other 96 38 (2)
699 10 3
Q1 2015 (£699million;up 10%)Vaccines sales grew 10% to £699 million with the US up 14%, Europe up 4% and International up 13%. The business benefited from one month of sales of the former Novartis products, and pro-forma growth for the quarter was 3%. In the US, reported growth of 14% (11% pro-forma) primarily reflected strong growth in Hepatitis vaccines which benefited from variations in CDC stockpile shipments and the replenishment of wholesaler inventory levels. Rotarix sales, up 12%, also benefited
from the replenishment of wholesaler inventory levels in the quarter. This growth was partly offset by lower sales of Infanrix/Pediarix as a result of the return to the market of a competitor vaccine during 2014. In Europe, sales grew 4% on a reported basis to £224 million, but declined 3% on a pro-forma basis. This was largely attributable to a 9% fall in Infanrix/Pediarix sales, which were impacted by the introduction of a competitor vaccine in 2014 and the phasing of shipments in several countries.
Sales of Hepatitis vaccines declined 4% and Cervarix sales were down 27% in part due to the phasing of shipments. These declines were partly offset by a 27% increase in Boostrix sales driven by better supply in comparison with Q1 2014. International sales of £258 million grew 13% on a reported basis and 3% pro-forma, benefiting from the phasing of shipments of a number of products in both Q1 2015 and Q1 2014. Synflorix sales grew 12%, primarily reflecting the phasing of tender shipments. Hepatitis
vaccines grew 20% mainly driven by the phasing of Havrix sales in the Middle East, but Boostrix sales fell 25%, reflecting the phasing of tender shipments in Brazil and the Middle East. Fluarix/FluLaval sales declined 75% due to the phasing of shipments in Brazil and Asia Pacific.
Consumer Healthcare
Turnover Q1 2015 Q1 2015
£m Reported Pro-forma
growth growth
CER% CER%
US 330 47 33
Europe 364 32 4
International 687 12 2
Total 1,381 24 8
Turnover Q1 2015 Q1 2015
£m Reported Pro-forma
growth growth
CER% CER%
Wellness 593 46 11
Oral health 485 9 9
Nutrition 182 2 (1)
Skin health 121 42 8
Total 1,381 24 8
Q1 2015 (£1,381million; up 24%)The Consumer Healthcare business represents the Consumer Healthcare Joint Venture with Novartis together with the GSK Consumer Healthcare businesses in India and Nigeria, which are excluded from the Joint Venture. Turnover grew 24% to £1,381 million, benefiting significantly from the first month's sales of the former Novartis products included in the Joint Venture. On a pro-forma basis, growth was 8%, primarily reflecting strong growth in the US following the launch of
Flonase OTC. Estimated global market growth was 6% in the quarter versus rolling 12 month growth of 4%. The uptick was primarily driven by a strong seasonal demand for cold and flu products, and OTC switches in the US market. Sales from new GSK innovations (product introductions within the last three years on a rolling basis) represented approximately 15% of Q1 2015 sales. This reflected a particularly strong contribution in the quarter from the Flonase launch in the US and consequently is several
points higher than annualised expectations. Other 2015 launches to date include Fenbid Chewable in China, Sensodyne Repair and Protect Whitening in the US and Germany, and the roll out of Sensodyne Mouthwash. US sales grew 47% on a reported basis to £330 million, and 33% on a pro-forma basis. Flonase was the region's primary growth driver and the brand currently holds an 11% estimated market share after only 10 weeks. Oral health sales were driven by Sensodyne which continued its strong performance with
growth of 14% and approximately a one percentage point of share gain in the quarter, helped by the launch of Sensodyne Repair and Protect Whitening. Skin health delivered strong growth helped by 27% growth of Abreva, boosted by stocking patterns. Niquitin Minis and alli returned to the market but Tums supply has seen some disruption during the quarter. Sales in Europe grew 32% on a reported basis to £364 million and grew 4% pro-forma. Oral health products reported growth of 8%, reflecting strong
performances from both Sensodyne and Aquafresh following an improved supply position, new advertising in key markets, and the roll out of Sensodyne True White in the UK, Sensodyne Repair and Protect in Germany, and Sensodyne Mouthwash across a number of markets. On a pro-forma basis, Wellness registered mid single digit growth, as regional Respiratory brands Beechams and Coldrex benefited from the stronger cold and flu season. Nutrition and Skin health sales both declined reflecting disruption from
stocking patterns and some supply shortages. International sales of £687 million grew 12% on a reported basis and 2% pro-forma. China, India and Turkey all reported double digit pro-forma growth, and Oral health (+12%) and Skin health (+11%) performed well across the region. Wellness growth was impacted by a decline in Panadol sales. This was primarily due to a challenging competitive environment in Australia and a tough comparative quarter in Latin America as the brand annualised against prior year
growth of over 50% following supply improvements. In Nutrition, Horlicks was up 4%, with strong consumption growth in India partly offset by some retailer destocking in the quarter.
Sales from new Pharmaceutical, ViiV Healthcare and Vaccine launches
Q1 2015
£m Growth
CER%
Global Pharmaceuticals
Respiratory Relvar/Breo Ellipta 41 >100
Anoro Ellipta 12 -
Incruse Ellipta 1 -
CVMU Eperzan/Tanzeum 4 -
Immuno-inflammation Benlysta 51 23
Other pharmaceuticals Potiga/Trobalt 1 -
ViiV Healthcare Tivicay 112 >100
Triumeq 81 -
303 >100
New products are those launched in the last five years (2011 to 2015 inclusive). Sales of new products were £303 million, grew in excess of 100% in the quarter and represented 7% of Global Pharmaceutical, ViiV Healthcare and Vaccine turnover.
Research and development
GSK remains focused on delivering an improved return on its investment in R&D. Sales contribution, reduced attrition and cost reduction are all important drivers of an improving internal rate of return. R&D expenditure is not determined as a percentage of sales but instead capital is allocated using strict returns based criteria depending on the pipeline opportunities available. The operations of Pharmaceuticals R&D are broadly split into Discovery activities (up to the completion of phase IIa trials) and
Development work (from phase IIb onwards) each supported by specific and common infrastructure and other shared services where appropriate. R&D expenditure for Q1 2015 is analysed below.
Q1 2015 Q1 2014
£m £m
Discovery 188 170
Development 314 333
Facilities and central support functions 108 124
Pharmaceuticals R&D 610 627
Vaccines 124 119
Consumer Healthcare 55 38
Core R&D 789 784
Amortisation and impairment of intangible assets 34 56
Major restructuring costs 32 4
Acquisition accounting and other 12 15
Total R&D 867 859
GSK's Phase III/Registration Pharmaceuticals and Vaccines pipeline
The table below is provided as part of our quarterly update to show events and changes to the late-stage pipeline during the quarter and up to the date of this announcement. There were several news events for late-stage pipeline assets in this quarter and these are listed in the table below. The Oncology products and Nimenrix have been removed from the table following the completion of the deal with Novartis. Retosiban has been added to the table as it entered Ph III during the quarter.
Since Q4 2014 results, the following pipeline milestones have been achieved:
· Announced positive Overall Survival results from Ph III COMBI-d study of Tafinlar and Mekinist combination in metastatic melanoma;
· Announced start of second Ph III (FULFIL) study for once daily closed triple ICS/LABA/LAMA vs Symbicort in patients with COPD;
· Announced start of Ph III study for retosiban in spontaneous pre-term labour;
· FDA AdCom recommended US approval of Breo Ellipta in adult patients with asthma;
· Triumeq approved in Japan for HIV;
· Encruse Ellipta approved in Japan for COPD;
· Synflorix approved in Japan for invasive pneumococcal disease;
· Duac approved in Japan for acne vulgaris;
· US approval of Flolan reformulation;
· Three year Ph III data for Mosquirix RTS,S malaria vaccine published in The Lancet;
· Publication of full data from ZOE-50 Ph III study of Zoster vaccine in NEJM;
· US approval of Breo Ellipta for adult patients with asthma;
· EU filing of ex-vivo stem cell gene therapy for ADA-SCID.
Respiratory US EU News update in the quarter
Relvar/Breo Ellipta(FF/VI) Asthma ApprovedApril 2015 ApprovedNov 2013 Approved by FDA for adult asthma in US on 30 April 2015
vilanterol (VI) COPD Ph III Ph III
mepolizumab Severe eosinophilic asthma FiledNov 2014 FiledNov 2014
COPD Ph III Ph III
FF+UMEC+VI COPD Ph III Ph III Start of FULFIL Ph III study vs Symbicort on 9 February 2015
Vaccines US EU News update in the quarter
MAGE-A3 Melanoma Ph III Ph III
HZ/su herpes zoster Shingles prophylaxis Ph III Ph III ZOE-50 data published in NEJM on 28 April 2015
Mosquirix (RTS,S) Malaria prophylaxis n/a FiledJuly 2014 Ph III data published in The Lancet on 24 April 2015
Cardiovascular & Metabolic US EU News update in the quarter
losmapimod Acute coronary syndrome (ACS) Ph III Ph III
retosiban Spontaneous pre-term labour Ph III Ph III Start of Ph III study on 17 March 2015
Immuno-inflammation US EU News update in the quarter
Benlysta (s.c.) Systemic lupus erythematosus Ph III Ph III
Benlysta (i.v.) vasculitis Ph III Ph III
sirukumab Rheumatoid arthritis Ph III Ph III
Rare diseases US EU News update in the quarter
2696273(Ex-vivo stem cell gene therapy) Adenosine deaminase severe combined immune deficiency (ADA-SCID) Ph II/III FiledMay 2015 Filed in EU on 5 May 2015
mepolizumab Eosinophilic granulomatosis with polyangiitis (EGPA) Ph III Ph III
Infectious Diseases US EU News update in the quarter
tafenoquine Treatment and relapse prevention of Plasmodium vivax malaria Ph III n/a
Dermatology US EU News update in the quarter
ofatumumab (s.c.) Pemphigus vulgaris Ph III Ph III
Definitions
Core resultsCore results exclude the following items from total results: amortisation and impairment of intangible assets (excluding computer software) and goodwill; major restructuring costs, including those costs following material acquisitions; legal charges (net of insurance recoveries) and expenses on the settlement of litigation and government investigations; other operating income other than royalty income; disposals of associates, products and businesses, and acquisition accounting adjustments for
material acquisitions, together with the tax effects of all of these items. GSK believes this approach provides a clearer view of the underlying performance of the core business and should make the Group's results more comparable with the majority of its peers. CER growthIn order to illustrate underlying performance, it is the Group's practice to discuss its results in terms of constant exchange rate (CER) growth. This represents growth calculated as if the exchange rates used to determine the results of
overseas companies in Sterling had remained unchanged from those used in the comparative period. All commentaries are presented in terms of CER growth, unless otherwise stated. Pro-forma growthThe Novartis transaction completed on 2 March 2015 and so GSK's reported results include one month of results of the former Novartis Vaccines and Consumer Healthcare businesses and exclude the results of the former GSK Oncology products from 2 March. Pro-forma growth rates are calculated comparing reported turnover
for Q1 2015 with the turnover for Q1 2014 adjusted to include the equivalent one month of results of the former Novartis Vaccines and Consumer Healthcare businesses and to exclude the results of the former GSK Oncology products from 2 March 2014. Full-year 2014 pro-forma resultsPro-forma results for the full-year 2014, where provided, include the following major adjustments: (i) the exclusion of Oncology, (ii) the inclusion of 12 months of the acquired Novartis Consumer and Vaccines businesses, (iii)
reallocation of most corporate costs to more accurately reflect the profitability of each segment and (iv) the reallocation of divestments required to Corporate and other unallocated costs. Pro-forma 2014 Corporate and other unallocated operating profit includes a structural benefit of £219 million realised in Q3 2014. See "Cautionary statement regarding unaudited pro-forma financial information" below. Free cash flowFree cash flow is the net cash inflow from operating activities less capital expenditure,
interest and dividends paid to non-controlling interests plus proceeds from the sale of property, plant and equipment and dividends received from joint ventures and associated undertakings. It is used by management for planning and reporting purposes and in discussions with and presentations to investment analysts and rating agencies. Free cash flow growth is calculated on a reported basis. Adjusted free cash flowAdjusted free cash flow excludes payments made to settle legal disputes. Free cash flow
conversionFree cash flow conversion is free cash flow as a percentage of earnings excluding after-tax legal charges and legal settlements. Adjusted net cash inflow from operating activitiesAdjusted net cash inflow from operating activities excludes payments made to settle legal disputes. Working capital conversion cycleThe working capital conversion cycle is calculated as the number of days sales outstanding plus days inventory outstanding, less days purchases outstanding. Cautionary statement regarding
unaudited pro-forma financial informationThe unaudited pro-forma financial information in this release has been prepared to illustrate the effect of (i) the disposal of the oncology assets, (ii) the Consumer Healthcare joint venture (i.e. the acquisition of the Novartis OTC Business), and (iii) the acquisition of the Vaccines business (which excludes the Influenza Vaccines business) on the results of the Group as if they had taken place as at 1 January 2014. The unaudited pro-forma financial information
has been prepared for illustrative purposes only and, by its nature, addresses a hypothetical situation and, therefore, does not represent the Group's actual financial position or results. The unaudited pro-forma financial does not purport to represent what the Group's financial position actually would have been if the disposal of the Oncology assets, the Consumer Healthcare joint venture and the Vaccines acquisition had been completed on the dates indicated; nor does it purport to represent the financial
condition at any future date. In addition to the matters noted above, the unaudited pro-forma financial information does not reflect the effect of anticipated synergies and efficiencies associated with the Oncology disposal, the Consumer Healthcare joint venture and the Vaccines acquisition. The unaudited pro-forma financial information does not constitute financial statements within the meaning of Section 434 of the Companies Act 2006. The unaudited pro-forma financial information in this release should
be read in conjunction with the financial statements included in (i) the Group's Q1 2015 earnings report dated 6 May 2015 and furnished to the SEC on Form 6-K, (ii) the Group's Annual Report on Form 20-F for 2014 and (iii) the Circular to Shareholders and Notice of General Meeting furnished to the SEC on Form 6-K on 24 November 2014.
Contacts
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Financial information
Income statement
Q1 2015 Q1 2014
£m £m
TURNOVER 5,622 5,613
Cost of sales (2,103) (1,743)
Gross profit 3,519 3,870
Selling, general and administration (2,225) (1,971)
Research and development (867) (859)
Royalty income 77 70
Other operating income/(expense) 8,712 (44)
OPERATING PROFIT 9,216 1,066
Finance income 32 18
Finance expense (191) (182)
Profit on disposal of associates 843 -
Share of after tax profits of associates and joint ventures 23 1
PROFIT BEFORE TAXATION 9,923 903
Taxation (1,885) (184)
Tax rate % 19.0% 20.4%
PROFIT AFTER TAXATION FOR THE PERIOD 8,038 719
(Loss)/profit attributable to non-controlling interests (51) 51
Profit attributable to shareholders 8,089 668
8,038 719
EARNINGS PER SHARE 167.8p 13.9p
Diluted earnings per share 166.4p 13.7p
Statement of comprehensive income
Q1 2015 Q1 2014
£m £m
Profit for the period 8,038 719
Items that may be reclassified subsequently to income statement:
Exchange movements on overseas net assets and net investment hedges (332) (17)
Fair value movements on available-for-sale investments 241 (30)
Reclassification of fair value movements on available-for-sale investments (262) (1)
Deferred tax on fair value movements on available-for-sale investments (24) (19)
Deferred tax reversed on reclassification of available-for-sale investments 2 -
Fair value movements on cash flow hedges (6) (1)
Deferred tax on fair value movements on cash flow hedges 1 -
Reclassification of cash flow hedges to income statement 3 2
Share of other comprehensive expense of associates and joint ventures (77) 13
(454) (53)
Items that will not be reclassified to income statement:
Exchange movements on overseas net assets of non-controlling interests 20 5
Remeasurement losses on defined benefit plans (328) (177)
Deferred tax on remeasurement losses on defined benefit plans 75 42
(233) (130)
Other comprehensive expense for the period (687) (183)
Total comprehensive income for the period 7,351 536
Total comprehensive income for the period attributable to:
Shareholders 7,382 480
Non-controlling interests (31) 56
7,351 536
Global Pharmaceuticals, ViiV Healthcare and Vaccines turnover
Three months ended 31 March 2015
Total US Europe International
£m Growth £m Growth £m Growth £m Growth
CER% CER% CER% CER%
Respiratory 1,408 (9) 583 (22) 392 (4) 433 5
Anoro Ellipta 12 - 9 - 2 - 1 -
Avamys/Veramyst 71 7 6 (25) 17 6 48 14
Flixotide/Flovent 153 (22) 83 (38) 27 (3) 43 15
Relvar/Breo Ellipta 41 >100 14 >100 16 >100 11 >100
Seretide/Advair 898 (14) 392 (21) 291 (11) 215 (4)
Ventolin 161 (9) 78 (24) 32 6 51 11
Other 72 5 1 - 7 - 64 4
Cardiovascular, metabolic and urology (CVMU) 218 (8) 83 (8) 68 (9) 67 (8)
Avodart 179 (7) 56 (14) 66 3 57 (12)
Other 39 (14) 27 4 2 (90) 10 22
Immuno-inflammation 60 19 55 21 4 33 1 (50)
Benlysta 51 23 46 26 4 33 1 (50)
Other 9 - 9 - - - - -
Oncology 216 (18) 93 (22) 70 (20) 53 (5)
Other pharmaceuticals 525 (9) 42 (17) 149 1 334 (12)
Dermatology 109 (11) 12 (15) 37 (5) 60 (14)
Augmentin 140 (3) - (100) 51 (3) 89 (2)
Other anti-bacterials 47 (16) 1 - 16 (14) 30 (17)
Rare diseases 91 (10) 12 (54) 32 6 47 -
Other 138 (9) 17 >100 13 60 108 (21)
Innovative Pharmaceuticals 2,427 (9) 856 (18) 683 (5) 888 (4)
Established Products 650 (20) 163 (42) 132 (14) 355 (8)
Coreg 27 (22) 27 (22) - - - -
Hepsera 22 (9) - - - - 22 (9)
Imigran/Imitrex 38 (15) 18 (29) 13 (7) 7 14
Lamictal 127 (2) 63 - 23 (11) 41 2
Lovaza 28 (75) 28 (75) - - - -
Requip 22 (14) 1 (67) 7 (18) 14 -
Serevent 23 (15) 10 - 10 (23)
- More to follow, for following part double click ID:nRSF3482McRecent news on GSK
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