GSK delivers Q2 core EPS of 26.4p and dividend of 17p
Core results
|
|
Q2 2012 |
|
|
H1 2012 |
|
|
|
|
m |
CER% |
% |
m |
CER% |
% |
|
Turnover |
6,462 |
(2) |
(4) |
13,102 |
- |
(2) |
|
Core operating profit |
2,002 |
(7) |
(8) |
4,073 |
(2) |
(3) |
|
Core earnings per share |
26.4p |
(5) |
(5) |
53.7p |
1 |
- |
Total results
|
|
Q2 2012 |
|
|
H1 2012 |
|
|
|
|
m |
CER% |
% |
m |
CER% |
% |
|
Turnover |
6,462 |
(2) |
(4) |
13,102 |
- |
(2) |
|
Operating profit |
1,736 |
(1) |
(2) |
3,773 |
- |
(1) |
|
Earnings per share |
25.4p |
17 |
17 |
52.1p |
2 |
1 |
Summary
Group sales -2% with growth from key investment areas offset by pressure on mature products in Europe and US:
Growth in Pharmaceuticals and Vaccines sales in EMAP +9% and Japan +6%; Consumer Healthcare sales +7% (excluding divested brands and alli)
Sales declines in Europe -8% and US -6% reflect challenging macro-economic environment, genericisation and discontinuation of certain products
Full year sales now expected to be in line with 2011 on a constant currency basis
Significant late-stage pipeline delivery supports potential for multiple product launches and outlook for the Group:
Data in-house to support potential launch of 8 new drugs and vaccines in next 24 months across broad therapeutic categories including COPD, type 2 diabetes and HIV
Multiple approvals and filings successfully achieved since Q1 including filing of first new asset in respiratory portfolio Relvar/Breo
Growing momentum of innovative oncology portfolio with imminent filing of MEK, BRAF inhibitors for melanoma
Further actions taken to reduce costs and drive operating leverage:
2012 core operating margin now expected to be broadly in line with last year (2011: 32.1%)
Continued strategic commitment to drive operating margin improvements over the next few years
New manufacturing process improvements expected to generate annual cost savings of approximately 500 million by end of 2015
Accelerating financial efficiencies with Q2 core tax rate improved to 25.5% (Q2 2011: 26.6%); now targeting 25% core tax rate in 2013
Continued strong cash generation supports enhanced returns to shareholders:
H1 2012 adjusted net cash inflow from operating activities of 3.1 billion (+3%)
Q2 dividend: 17p +6%
3.2 billion of cash distributed to shareholders in H1 2012: +22% versus H1 2011; continue to expect 2-2.5 billion of share repurchases in 2012
Acquisition of Human Genome Sciences expected to complete in Q3 2012; Benlysta US net sales $38 million in Q2 2012
