Drugs giant GlaxoSmithKline reported flat revenues at constant exchange rates (CER) in the first half, but saw turnover slip in the second quarter as growth from key investments areas was offset by pressure on mature products in Europe and the US.
The group said that full-year sales are now expected to be in line with 2011 levels (on a CER basis), despite earlier guidance of a return to sales growth.
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Meanwhile, turnover in the second quarter alone decreased by 2% to £6,462m, with sales in Europe and the US, down 8% and 6%, respectively. Analysts were expecting revenues of £6.7bn in the second quarter.
Revenues outside these two markets accounted for 41% of group turnover in the second quarter and increased by 7%.
"Our performance this quarter reflects the challenging macro-economic environment in which we are operating and the continued transition of our product portfolio," said Chief Executive Officer Sir Andrew Witty.
Total pre-tax profit in the first half totalled £3,431m, down from £4,056m the year before, primarily as a result of lower sales and last year's benefit of a £584m profit on the disposal of interests in associates.
The group has declared a second interim dividend per share of 17p (up from 16p last year) making 34p for the half year.
"Whilst we are under no illusions that we must respond to the challenging economic environment we face, the very significant progress made in our late-stage pipeline provides us with increasing confidence that we have the ability to deliver long-term sustainable sales growth and improving returns to shareholders," Witty said.
BC
