GSK delivers Q3 core EPS of 26.5p and dividend of 18p
Core results
|
|
Q3 2012 |
|
|
9 months 2012 |
|
|
|
m |
CER% |
% |
|
m |
CER% |
% |
|
Turnover |
6,527 |
(5) |
(8) |
19,629 |
(2) |
(4) |
|
Core operating profit |
1,970 |
(13) |
(15) |
6,043 |
(6) |
(8) |
|
Core earnings per share |
26.5p |
(11) |
(13) |
80.2p |
(3) |
(5) |
Total results
|
|
Q3 2012 |
|
|
9 months 2012 |
|
|
|
m |
CER% |
% |
|
m |
CER% |
% |
|
Turnover |
6,527 |
(5) |
(8) |
19,629 |
(2) |
(4) |
|
Operating profit |
1,679 |
(18) |
(21) |
5,452 |
(6) |
(8) |
|
Earnings per share |
22.9p |
(14) |
(17) |
75.0p |
(4) |
(6) |
Summary
Group sales (-5%) impacted by expected demanding prior year comparisons and continued weakness in European markets; strong performance evident in key investment businesses:
Excluding prior year comparisons related to sales of Cervarix in Japan and US flu vaccines (3 percentage points), and product disposals of OTC brands and Vesicare (2 percentage points), sales for the quarter broadly in line with last year.
Europe -9% reflecting additional austerity measures
US -6% reflecting genericisation and discontinuation of certain products (+2% excluding these items)
EMAP +11%; Consumer Healthcare +5% (excluding divestments); Japan +6% (excluding Cervarix)
2012 sales (CER) now expected to be broadly inline with 2011, absent a further deterioration in Europe
Further successful R&D delivery: phase III programmes completed for 6 novel medicines in 2012:
BRAF, MEK, Relvar/Breofiled; albiglutide, dolutegravir, LABA/LAMA expected to file around end of year
ViiV Healthcare acquires exclusive global rights to HIV integrase portfolio including dolutegravir
Focus on delivery of cost improvements and financial efficiencies maintained:
Q3 combined core SG&A and R&D expenditure flat, reflecting efficiency gains offset by pipeline and growth investments
Additional cost reductions and phasing of operating expenses expected to benefit Q4 relative to Q3
Full year core tax rate now expected to be approximately 25%; two years ahead of original target
2012 core operating margin expected to be broadly in line with last year
Continued strong cash generation and returns to shareholders:
Adjusted net cash inflows from operating activities 1.8 billion
4.8 billion of cash distributed to shareholders year to date (+9% versus 2011); continue to expect total share repurchases in 2012 of 2 - 2.5 billion
Further dividend growth: Q3 18p +6%
