Glaxo sales to remain flat this year
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.
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.
Revenue totalled £13,102m in the six months to June 30th, broadly unchanged at CER, as a 1% decline in Pharmaceuticals and Vaccines was offset by a 1% increase in reported Consumer Healthcare.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Live: Will the Bank of England cut interest rates?
The outcome of the next Monetary Policy Committee meeting will be announced on 7 November. Stay up to date with live reporting and analysis from the team at MoneyWeek.
By Katie Williams Last updated
-
University tuition fees will rise to £9,535 next year – what does it mean for you?
The tuition fee hike has angered many students, not to mention their parents and grandparents who often help with financial support. But will it make a difference to how much you repay in the long run?
By Katie Williams Published