# GlaxoSmithKline PLC Delivers sales of £7.7 billion +6% AER, +5% CER

- Link: https://www.directorstalkinterviews.com/glaxosmithkline-plc-delivers-sales-of-7-7-billion-6-aer-5-cer/412773627
- Published: 2019-05-01T12:35:11+01:00
- Author: Charlotte Edwards

**[GlaxoSmithKline](https://www.directorstalkinterviews.com/ftse-company/glaxosmithkline-plc/gsk.l)
PLC** ([LON:GSK](https://www.directorstalkinterviews.com/ftse-company/glaxosmithkline-plc/gsk.l))
today announced 1st quarter results 2019

**Financial highlights**

· Pharmaceuticals sales £4.2 billion, +4% AER, +2% CER; Vaccines £1.5 billion, +
23% AER, +20% CER; Consumer Healthcare £2.0 billion, flat AER, +1% CER.

· Total Group operating margin 18.6%. Adjusted Group operating margin 28.2%, +1.6
percentage points AER, +1.0 percentage point CER (Pharmaceuticals 29.8%; Vaccines
40.3%; Consumer Healthcare 21.7%). Benefits from strong sales growth and phasing
of R&D.

· Total EPS 16.8p, +50% AER, +42% CER.

· Adjusted EPS 30.1p, +22% AER, +18% CER, driven by strong operating performance,
continued financial efficiencies, reduction in minority share and a one-off benefit
to associates.

· Net cash flow from operations £663 million. Free cash flow £165 million.

· 19p dividend declared for the quarter; continue to expect 80p for full year 2019.

· 2019 Guidance reaffirmed.

**Product and pipeline highlights**

· Total HIV sales £1.1 billion, +7% AER, +4% CER, including Juluca sales of £70 
million.

– Dovato (dolutegravir+lamivudine), first once-daily 2-drug regimen for treatment-
naive HIV patients, launched in US.

-Long-acting cabotegravir+rilpivirine filed in the US for treatment of HIV.

· Total new Respiratory product sales £631 million, +29% AER, +25% CER, including
Trelegy £87 million; Nucala £152 million.

· Shingrix sales £357 million driven by continued strong launch execution in US.

· Continued progress in immuno-oncology pipeline:

-Zejula sales of £42 million since 22 January following completion of Tesaro acquisition

-Positive data from GARNET study presented at the Society of Gynecologic Oncology
conference indicating robust activity of PD-1 dostarlimab in patients with advanced
or recurrent endometrial cancer

-Global alliance with Merck KGaA, Darmstadt, Germany completed to jointly develop
and commercialise M7824, a novel immunotherapy with potential in multiple difficult-
to-treat cancers

– Further positive data announced from belantamab mafodotin (BCMA) DREAMM-1 study
and reported in Blood Cancer Journal

  |

Q1 2019 results

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 |   |   |

Q1 2019

  |   |

Growth

  |  
 |   |   |

£m

  |   |

£%

  |   |

CER%

  |  
 |   |   |   |   |   |   |   |  
 |

Turnover

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7,661  

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6 

  |   |

5 

  |  
 |   |   |   |   |   |   |   |  
 |

Total operating profit

  |   |

1,428  

  |   |

15 

  |   |

10 

  |  
 |

Total earnings per share

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16.8p

  |   |

50 

  |   |

42 

  |  
 |   |   |   |   |   |   |   |  
 |

Adjusted operating profit

  |   |

2,163  

  |   |

12 

  |   |

9 

  |  
 |

Adjusted earnings per share

  |   |

30.1p

  |   |

22 

  |   |

18 

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 |   |   |   |   |   |   |   |  
 |

Net cash from operating activities

  |   |

663  

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(23)

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 |

Free cash flow

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165  

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(50)

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 |   |   |   |   |   |   |   |

> **Emma Walmsley, Chief Executive Officer, GSK said:**
> “We have made a strong start to 2019, which is an important year of execution 
> for GSK, with growth in sales, operating margins and earnings per share in Q1,
> in line with our expectations. Strengthening our pipeline remains our number one
> priority and we reported positive data for several potential new medicines in 
> HIV and Oncology during the quarter. I am also pleased to report that integration
> planning for our new proposed Consumer Healthcare business is going well and, 
> subject to relevant approvals, we continue to expect to complete this transaction
> in the second half of the year. We look forward to building on the progress made
> this quarter.”

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