SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
6-K
Report of
Foreign Private Issuer
Pursuant to Rule
13a-16
or
15d-16
of
the Securities Exchange Act of 1934
May 10, 2018
|
|
|
GlaxoSmithKline plc
GlaxoSmithKline Capital plc
|
|
GlaxoSmithKline Capital Inc.
|
(Name of registrant)
|
|
(Name of registrant)
|
|
|
|
980 Great West Road, Brentford,
Middlesex, TW8 9GS
|
|
1105 North Market Street, Suite 1300,
Wilmington, Delaware 19801
|
(Address of principal executive offices)
|
|
(Address of principal executive offices)
|
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F
or Form
40-F).
Form
20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is submitting the
Form 6-K
in paper as permitted by Regulation
S-T
Rule 101(b)(1):
Indicate
by check mark if the registrant is submitting the
Form 6-K
in paper as permitted by Regulation
S-T
Rule 101(b)(7):
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE
INCORPORATED BY REFERENCE IN THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NOS. 333-223982, 333-223982-01 AND 333-223982-02) OF GLAXOSMITHKLINE PLC, GLAXOSMITHKLINE CAPITAL PLC AND GLAXOSMITHKLINE CAPITAL INC. AND TO BE A
PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
|
|
|
This Report reflects the results of GlaxoSmithKline plc and its consolidated subsidiaries (GSK) for the first quarter of 2018, as previously announced by GSK on 25 April 2018 (the Q1 2018 results
announcement). This Report speaks as of the time of the Q1 2018 results announcement and does not reflect events that may have occurred subsequent to such announcement.
|
|
|
First quarter 2018
|
|
|
GSK delivers Q1 sales of £7.2 billion,
-2%
AER, +4% CER
Total EPS 11.2p,
-48%
AER,
-33%
CER; Adjusted EPS 24.6p,
-2%
AER, +11% CER
Significant currency impact in the quarter reflecting movements in Sterling
Contents
The results are presented under Income Statement on page 22. The definitions of £% or AER% growth, CER%
growth, Adjusted results, free cash flow and other
non-IFRS
measures are set out on page 19 and reconciliations to the nearest IFRS measures are available on pages 9, 34, 37 and 38.
1
|
|
|
Press release
|
|
|
Sales performance
Group turnover by business and geographic region
Group turnover by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Pharmaceuticals
|
|
|
4,009
|
|
|
|
(4
|
)
|
|
|
2
|
|
Vaccines
|
|
|
1,238
|
|
|
|
7
|
|
|
|
13
|
|
Consumer Healthcare
|
|
|
1,975
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group turnover
|
|
|
7,222
|
|
|
|
(2
|
)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group turnover declined 2% AER but increased 4% CER to £7,222 million, with CER growth delivered by all three
businesses.
Pharmaceuticals sales were down 4% AER but up 2% CER, reflecting the continued strong growth in HIV sales and growth from
Nucala
and
the
Ellipta
portfolio, including the first full quarter of sales of
Trelegy
. This was partly offset by lower sales of
Seretide/Advair, Ventolin
and Established Pharmaceuticals. Overall Respiratory sales declined 6% AER, but were
flat at CER.
Vaccines sales were up 7% AER, 13% CER, primarily driven by sales of
Shingrix
in the US as well as increased demand for
Bexsero
and Hepatitis vaccines, partly offset by declines in Established Vaccines and
Menveo
.
Consumer Healthcare sales declined 3% AER but
grew 2% CER reflecting strong performances from power brands in the Pain relief and Oral health categories as well as Cold & flu seasonal brands, partly offset by the adverse comparison with launch sales for
Flonase Sensimist
in Q1
2017 and the impacts of generic competition to
Transderm Scop
in the US and the implementation of the Goods & Service Tax (GST) in India on 1 July 2017.
Group turnover by geographic region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
US
|
|
|
2,518
|
|
|
|
(4
|
)
|
|
|
7
|
|
Europe
|
|
|
2,041
|
|
|
|
2
|
|
|
|
|
|
International
|
|
|
2,663
|
|
|
|
(4
|
)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group turnover
|
|
|
7,222
|
|
|
|
(2
|
)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US sales declined 4% AER, but grew 7% CER driven by strong performances from
Tivicay
and
Triumeq
, as well as
contributions from the growth of
Shingrix
and Hepatitis vaccines.
Europe sales grew 2% AER, but were flat at CER as growth from
Tivicay
and
Triumeq
was offset by continued generic competition to
Epzicom
and
Avodart
. Growth in the new Respiratory products offset the decline in
Seretide
.
In International, sales declined 4% AER, but grew 4% CER reflecting strong growth in
Tivicay
,
Triumeq
, the Respiratory portfolio and
Cervarix
in China, following its recent launch. Sales in Emerging Markets declined 4% AER, but grew 4% CER.
2
|
|
|
Press release
|
|
|
Turnover Q1 2018
Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Respiratory
|
|
|
1,575
|
|
|
|
(6
|
)
|
|
|
|
|
HIV
|
|
|
1,048
|
|
|
|
6
|
|
|
|
14
|
|
Immuno-inflammation
|
|
|
100
|
|
|
|
9
|
|
|
|
20
|
|
Established Pharmaceuticals
|
|
|
1,286
|
|
|
|
(10
|
)
|
|
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,009
|
|
|
|
(4
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
1,570
|
|
|
|
(9
|
)
|
|
|
1
|
|
Europe
|
|
|
1,027
|
|
|
|
2
|
|
|
|
(1
|
)
|
International
|
|
|
1,412
|
|
|
|
(3
|
)
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,009
|
|
|
|
(4
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals turnover in the quarter was £4,009 million, down 4% AER, but up 2% CER, driven primarily by the
growth in HIV sales, which were up 6% AER, 14% CER, to £1,048 million, reflecting continued strong performances by
Triumeq
and
Tivicay
and initial sales of
Juluca
. Respiratory sales declined 6% AER, but were flat at
CER, to £1,575 million, with growth from the
Ellipta
portfolio and
Nucala
offset by lower sales of
Seretide/Advair
and
Ventolin
. Sales of Established Pharmaceuticals fell 10% AER, 5% CER, with the decline
mitigated by some
one-off
contract sales in the quarter.
In the US, sales declined 9% AER but grew 1% at CER,
with growth in the HIV portfolio and
Benlysta
offsetting declines in Established Products and Respiratory. Europe sales grew 2% AER but declined 1% CER, reflecting continued generic competition to
Epzicom
and
Avodart
and the
ongoing transition of the Respiratory portfolio. International declined 3% AER but grew 5% CER, primarily driven by the new Respiratory portfolio.
Respiratory
Total Respiratory sales declined 6%
AER, but were flat at CER, with the US down 14% AER, 4% CER. Europe sales grew 2% AER but declined 1% CER and International declined 2% AER but grew 6% CER, driven primarily by higher sales in Japan. Growth from the
Ellipta
portfolio and
Nucala
was offset by lower sales of
Seretide/Advair
and
Ventolin
.
Sales of
Nucala
were £104 million in the
quarter, growing 76% AER, 86% CER, continuing to benefit from the global rollout of the product. US sales of
Nucala
grew 40% AER, 57% CER to £59 million, despite some
de-stocking
and
increased competitive pressures from a new market entrant in the quarter.
Sales of
Ellipta
products were up 25% AER, 34% CER, driven by continued
growth in all regions. In the US, sales grew 16% AER, 29% CER, reflecting further market share gains, partly offset by the impact of continued competitive pricing pressures. In Europe, sales grew 41% AER, 38% CER. Sales of
Trelegy Ellipta
,
our new, once daily closed triple
Ellipta
product, contributed £11 million in the quarter.
Relvar/Breo Ellipta
sales grew 7%
AER, 14% CER, to £219 million, primarily driven by growth in Europe, which was up 27% AER, 22% CER to £62 million, and in International, which was up 30% AER, 39% CER to £57 million. In the US,
Breo Ellipta
sales declined 10% AER, but grew 1% CER, with volume growth of 44%, reflecting continued market share growth, almost entirely offset by the combined impact of prior period payer rebate adjustments (primarily an unfavourable comparison with
rebate levels in Q1 2017) and increased competitive pricing pressure.
Anoro Ellipta
sales grew 56% AER, 68% CER to £97 million, driven by gains in the US. All
Ellipta
products,
Breo
,
Anoro
,
Incruse
,
Arnuity and Trelegy
, continued to grow market share in the US during the quarter.
3
|
|
|
Press release
|
|
|
Seretide/Advair
sales declined 25% AER, 20% CER to £566 million. Sales of
Advair
in
the US declined 32% AER, 25% CER (6% volume decline and 19% negative impact of price) primarily reflecting increased pricing and competitive pressures. In Europe,
Seretide
sales were down 19% AER, 21% CER to £166 million (9% volume
decline and a 12% price decline). This reflected continued competition from generic products and the transition of the Respiratory portfolio to newer products. In International, sales of
Seretide
were down 17% AER, 12% CER, to
£171 million (9% volume decline and 3% negative impact of price), reflecting generic competition in certain markets and the continuing transition to the newer Respiratory products.
Pricing pressures also affected other Respiratory products, with
Ventolin
sales declining 16% AER, 9% CER to £180 million.
HIV
HIV sales increased 6% AER, 14% CER to
£1,048 million in the quarter, with the US up 3% AER, 15% CER, Europe up 15% AER, 12% CER and International up 3% at AER, up 11% CER. The growth was driven by continued increases in market share for
Triumeq
and
Tivicay
,
partly offset by the impact of generic competition to
Epzicom/Kivexa
, particularly affecting the European market. The ongoing increase in patient numbers for both
Triumeq
and
Tivicay
resulted in sales of £606 million
and £348 million, respectively, in the quarter.
Juluca
was approved in the US in November 2017, and recorded sales of £10 million in its first full quarter.
Epzicom/Kivexa
sales declined 53% AER, 52% CER to £37 million, reflecting ongoing generic competition.
Immuno-inflammation
Sales in the quarter were up
9% AER, 20% CER, primarily driven by
Benlysta
which grew 10% AER, 21% CER to £100 million. In the US, Benlysta grew 7% AER, 18% CER to £89 million including the contribution from the
sub-cutaneous
formulation launched in Q3 2017.
Established Pharmaceuticals
Sales of Established Pharmaceuticals in the quarter were £1,286 million, down 10% AER, 5% CER. The decline was mitigated by some
one-off
contract sales, including a post-divestment sale of raxibacumab inventory.
The
Avodart
franchise was
down 12% AER, 9% CER to £141 million, primarily due to the loss of exclusivity in Europe, with the US impact now broadly annualised.
Coreg CR
sales were lower following a generic entrant to the US market.
Augmentin
sales
grew 6% AER, 12% CER to £164 million with improved demand in Emerging Markets.
4
|
|
|
Press release
|
|
|
Vaccines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Meningitis
|
|
|
180
|
|
|
|
(6
|
)
|
|
|
(2
|
)
|
Influenza
|
|
|
9
|
|
|
|
(31
|
)
|
|
|
(23
|
)
|
Shingles
|
|
|
110
|
|
|
|
|
|
|
|
|
|
Established Vaccines
|
|
|
939
|
|
|
|
(1
|
)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,238
|
|
|
|
7
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
489
|
|
|
|
35
|
|
|
|
50
|
|
Europe
|
|
|
389
|
|
|
|
|
|
|
|
(3
|
)
|
International
|
|
|
360
|
|
|
|
(10
|
)
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,238
|
|
|
|
7
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover grew 7% AER, 13% CER to £1,238 million, primarily driven by growth in sales of
Shingrix.
Bexsero
sales also contributed, with growth across all regions driven by demand and share gains in the US, together with private market sales in International and Europe.
Menveo
sales declined due to a strong comparator performance
in Q1 2017 and supply constraints in International, partly offset by growth in the US. Established Vaccines growth was driven by Hepatitis vaccines, mainly due to a competitor supply shortage in the US, and the recent launch of
Cervarix
in China. These were partly offset by lower
Synflorix
sales, driven by lower pricing in Emerging markets and unfavourable phasing, and increased competitive pressures on
Infanrix, Pediarix
in Europe and the US.
Meningitis
Meningitis sales declined 6% AER, 2%
CER to £180 million.
Bexsero
sales growth of 10% AER, 13% CER was driven by demand and share gains in the US, together with private market sales in International and Europe, and improved supply in Europe.
Menveo
sales
decreased by 33% AER, 25% CER, primarily reflecting a strong comparator performance in Q1 2017 and supply constraints in International, partly offset by favourable
year-on-year
CDC purchases and higher demand in the US.
Influenza
Fluarix/FluLaval
sales declined 31% AER, 23% CER to £9 million, due to an unfavourable comparison with Q1 2017, which saw some
early deliveries, and increased competition in the quarter in International.
Shingles
Shingrix
recorded sales of £110 million in its first full quarter in the US and Canada, including continued building of wholesaler and other
channel stocks.
Established Vaccines
Sales
of the DTPa-containing vaccines (
Infanrix
,
Pediarix
and
Boostrix
) were down 11% AER, 6% CER.
Boostrix
sales declined 10% AER, 5% CER to £100 million, primarily driven by the return to the market of a competitor
in Europe and unfavourable prior year US wholesaler stocking patterns.
Infanrix
,
Pediarix
sales were down 12% AER, 6% CER to £206 million, reflecting increased competitive pressures in Europe and the US, partly offset by
higher demand in International.
Hepatitis vaccines grew 17% AER, 24% CER to £195 million, benefiting from a competitor supply shortage and
stronger demand in the US and Europe, partly offset by supply constraints in International.
Rotarix
sales declined 11% AER, 6% CER to
£130 million, mainly driven by the timing of tenders in International, partly offset by higher demand in Europe.
Synflorix
sales were
down 26% AER, 26% CER to £99 million, primarily driven by lower pricing and the unfavourable impact of phasing in Emerging Markets, partly offset by higher demand in International.
Cervarix
sales were £52 million, more than double Q1 2017, primarily driven by its recent launch in China.
5
|
|
|
Press release
|
|
|
Consumer Healthcare
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Wellness
|
|
|
1,017
|
|
|
|
(5
|
)
|
|
|
|
|
Oral health
|
|
|
638
|
|
|
|
2
|
|
|
|
7
|
|
Nutrition
|
|
|
168
|
|
|
|
(8
|
)
|
|
|
(1
|
)
|
Skin health
|
|
|
152
|
|
|
|
(7
|
)
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,975
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
459
|
|
|
|
(13
|
)
|
|
|
(3
|
)
|
Europe
|
|
|
625
|
|
|
|
5
|
|
|
|
2
|
|
International
|
|
|
891
|
|
|
|
(3
|
)
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,975
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Healthcare sales declined 3% AER but grew 2% CER in the quarter to £1,975 million. The quarter saw strong
performances in Oral health, Pain Relief and the Cold & flu seasonal brands, partly offset by the comparison with launch sales for
Flonase Sensimist
in Q1 2017. The generic competition to
Transderm Scop
in the US and the
ongoing impact of the implementation of the Goods & Service Tax (GST) in India on 1 July 2017 impacted growth in the quarter by approximately two percentage points.
Wellness
Wellness sales declined 5% AER and were
flat at CER at £1,017 million. Respiratory sales were down 7% AER, 2% CER with strong double-digit growth for
Theraflu
driving share gains in the quarter and the benefit of a more severe US winter season more than offset by the
comparison with the prior year launch sales for
Flonase Sensimist.
Pain relief continued to perform well in the quarter, up 2% AER, 7% CER.
Voltaren
delivered broadly based consumption growth, driven by new marketing campaigns.
Panadol
delivered
mid-single-digit
growth with a strong performance in International markets also
benefiting from a weak comparator in Australia in the prior year.
Transderm Scop
generic competition, which started in July 2017, continued to
build in the US during the quarter, leading to a decline of 69% AER, 65% CER compared with Q1 2017 and impacting overall Wellness growth in the quarter by approximately one percentage point.
Oral health
Oral health sales grew 2% AER, 7% CER
to £638 million with
Sensodyne
continuing to drive performance, reporting high single-digit CER growth, with strong delivery in the International region more than offsetting the comparison with new product launch sales in the US in
Q1 2017. Sales of Denture care and
Parodontax
grew in double digits, reflecting broadly based gains driven by increased dentist recommendation and innovation, including
Parodontax Complete Protection
and
Polident Max Seal
.
Nutrition
Nutrition sales declined 8% AER and 1%
CER to £168 million, with growth adversely impacted by the implementation of GST in India in July 2017 which impacted overall Nutrition growth by 10 percentage points. Consumption growth accelerated for
Horlicks
in India, which
benefited from strong marketing activities and new variant launches. The brands under strategic review represented approximately 80% of the overall Nutrition sales in the quarter.
Skin health
Skin health sales declined 7% AER, 2%
CER to £152 million with a tough quarter for
Lamisil
in International, in part reflecting timing impacts
across a number of smaller markets. This was partly offset by a good performance in Europe on
Lamisil
and
Fenistil.
Lip care also performed well in the peak winter season.
6
|
|
|
Press release
|
|
|
Financial performance Q1 2018
Total results
The Total
results for the Group are set out below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Turnover
|
|
|
7,222
|
|
|
|
7,384
|
|
|
|
(2
|
)
|
|
|
4
|
|
Cost of sales
|
|
|
(2,391
|
)
|
|
|
(2,513
|
)
|
|
|
(5
|
)
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
4,831
|
|
|
|
4,871
|
|
|
|
(1
|
)
|
|
|
7
|
|
Selling, general and administration
|
|
|
(2,311
|
)
|
|
|
(2,452
|
)
|
|
|
(6
|
)
|
|
|
(2
|
)
|
Research and development
|
|
|
(904
|
)
|
|
|
(960
|
)
|
|
|
(6
|
)
|
|
|
(1
|
)
|
Royalty income
|
|
|
53
|
|
|
|
82
|
|
|
|
(35
|
)
|
|
|
(34
|
)
|
Other operating income/(expense)
|
|
|
(429
|
)
|
|
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
1,240
|
|
|
|
1,718
|
|
|
|
(28
|
)
|
|
|
(15
|
)
|
Finance income
|
|
|
20
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
Finance expense
|
|
|
(162
|
)
|
|
|
(194
|
)
|
|
|
|
|
|
|
|
|
Share of after tax profits of associates and joint ventures
|
|
|
9
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
|
|
1,107
|
|
|
|
1,550
|
|
|
|
(29
|
)
|
|
|
(15
|
)
|
Taxation
|
|
|
(348
|
)
|
|
|
(327
|
)
|
|
|
|
|
|
|
|
|
Tax rate %
|
|
|
31.4
|
%
|
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
|
|
759
|
|
|
|
1,223
|
|
|
|
(38
|
)
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling
interests
|
|
|
210
|
|
|
|
177
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders
|
|
|
549
|
|
|
|
1,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
759
|
|
|
|
1,223
|
|
|
|
(38
|
)
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
11.2
|
p
|
|
|
21.4
|
p
|
|
|
(48
|
)
|
|
|
(33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
Cost of
sales as a percentage of turnover was 33.1%, down 0.9 percentage points at AER and 2.1 percentage points in CER terms compared with Q1 2017. This reflected a more favourable product mix in Pharmaceuticals in the quarter, particularly the impact of
higher HIV sales. There was also a further contribution from integration and restructuring savings in all three businesses, together with lower costs from the manufacturing restructuring programmes. This was partly offset by continued adverse
pricing pressure in Pharmaceuticals, particularly in Respiratory, and a negative mix impact in Established Vaccines.
Selling, general and
administration
SG&A costs as a percentage of turnover were 32.0%, 1.2 percentage points lower than in Q1 2017 at AER and 1.7 percentage points
lower on a CER basis. This primarily reflected lower restructuring and legal costs, as well as tight control of ongoing operating costs, particularly in Consumer Healthcare, and continued cost reductions in Pharmaceuticals. The improvement was
partly offset by an increased investment in promotional product support, particularly for new launches in Respiratory, HIV and Vaccines.
Research and
development
R&D expenditure was £904 million (12.5% of turnover), 6% lower than in Q1 2017 at AER and 1% lower at CER. This primarily
reflected reduced restructuring costs and lower intangible asset impairments, offset by increased investment in the progression of a number of mid and late-stage programmes.
7
|
|
|
Press release
|
|
|
Royalty income
Royalty income was £53 million (Q1 2017: £82 million), primarily reflecting the impact of the patent expiry of Cialis.
Other operating income/(expense)
Net other operating
expense of £429 million (Q1 2017: £177 million income) primarily reflected £416 million (Q1 2017: £70 million) of accounting charges arising from the
re-measurement
of
the contingent consideration liabilities related to the acquisitions of the former Shionogi-ViiV Healthcare joint venture and the former Novartis Vaccines business, the value attributable to the Consumer Healthcare Joint Venture put option held by
Novartis and the liabilities for the Pfizer put option and Pfizer and Shionogi preferential dividends in ViiV Healthcare.
These charges were driven
primarily by the £495 million revaluation of the Consumer Healthcare Joint Venture put option to the consideration agreed with Novartis of $13 billion, discounted to the end of the quarter. This
re-measurement
charge was partly offset by accounting credits primarily related to changes in exchange rate assumptions on the valuation of the put option liability to Pfizer, and the valuation of the
contingent consideration liability due to Shionogi, partly offset by the unwind of the discount.
In addition, Q1 2017 benefited from the gain of
£245 million on the disposal of the anaesthesia business.
Operating profit
Total operating profit was £1,240 million in Q1 2018 compared with £1,718 million in Q1 2017. The reduction in operating profit reflected
the increased impact of accounting charges related to
re-measurement
of the liability for the Consumer Healthcare put option and the benefit in Q1 2017 of the gain on the disposal of the anaesthesia business,
as well as continuing price pressure, particularly in Respiratory, and supply chain investments, partly offset by tight control of ongoing costs and reduced restructuring costs.
Net finance costs
Net finance expense was
£142 million compared with £173 million in Q1 2017. The reduction reflected the benefit of a
one-off
accounting adjustment to the amortisation of long term bond interest charges of
approximately £20 million and the translation impact of exchange rate movements on the reported Sterling costs of foreign currency denominated interest-bearing instruments.
Taxation
The charge of £348 million
represented an effective tax rate of 31.4% (Q1 2017: 21.1%) and reflected the differing tax effects of the various adjusting items.
Non-controlling
interests
The allocation of earnings to
non-controlling
interests amounted to £210 million (Q1 2017: £177 million), including the
non-controlling
interest allocations of Consumer Healthcare profits of £89 million (Q1 2017: £63
million) and the allocation of ViiV Healthcare profits of £110 million (Q1 2017: £102 million). The allocation of ViiV Healthcare profits included the impact of changes in the proportions of preferential dividends due to each
shareholder and the impact of
re-measurement
charges.
Earnings per share
Total earnings per share was 11.2p, compared with 21.4p in Q1 2017. The reduction in earnings per share primarily reflected the increased impact of charges
arising from increases in the valuation of the liability for the Consumer Healthcare put option and the benefit in Q1 2017 from the gain on disposal of the anaesthesia business. This was partly offset by improved trading performance and reduced
restructuring and legal costs.
8
|
|
|
Press release
|
|
|
Adjusting items
GSK presents Total results and Adjusted results in order to assist shareholders in better understanding the Groups operational performance.
Total results represent the Groups overall performance. However, these results can contain material unusual or
non-operational
items that may obscure the key trends and factors determining the Groups operational performance. GSK therefore also reports Adjusted results, which is a
non-IFRS
measure, to help shareholders identify and assess more clearly the key drivers of the Groups performance. This approach aligns the presentation of the Groups results more closely with the
majority of GSKs peer group.
Adjusted results exclude the following items from Total results: amortisation and impairments of intangible assets and
goodwill; major restructuring costs; significant legal charges and expenses; transaction-related accounting adjustments; disposals and other operating income other than royalty income, together with the tax effect of all these items and the impact
of the enactment of the US Tax Cuts and Jobs Act in 2017.
The adjusting items that reconcile Total operating profit, profit after tax and earnings per
share to Adjusted results are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
Q1 2017
|
|
|
|
Operating
profit
£m
|
|
|
Profit
after tax
£m
|
|
|
Earnings
per share
p
|
|
|
Operating
profit
£m
|
|
|
Profit
after tax
£m
|
|
|
EPS
p
|
|
Total results
|
|
|
1,240
|
|
|
|
759
|
|
|
|
11.2
|
|
|
|
1,718
|
|
|
|
1,223
|
|
|
|
21.4
|
|
Intangible asset amortisation
|
|
|
149
|
|
|
|
117
|
|
|
|
2.4
|
|
|
|
142
|
|
|
|
111
|
|
|
|
2.3
|
|
Intangible asset impairment
|
|
|
27
|
|
|
|
23
|
|
|
|
0.5
|
|
|
|
44
|
|
|
|
31
|
|
|
|
0.7
|
|
Major restructuring costs
|
|
|
65
|
|
|
|
49
|
|
|
|
1.0
|
|
|
|
166
|
|
|
|
129
|
|
|
|
2.7
|
|
Transaction-related items
|
|
|
437
|
|
|
|
457
|
|
|
|
9.0
|
|
|
|
92
|
|
|
|
65
|
|
|
|
0.9
|
|
Divestments, significant legal and other items
|
|
|
5
|
|
|
|
26
|
|
|
|
0.5
|
|
|
|
(183
|
)
|
|
|
(143
|
)
|
|
|
(3.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
|
|
|
683
|
|
|
|
672
|
|
|
|
13.4
|
|
|
|
261
|
|
|
|
193
|
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted results
|
|
|
1,923
|
|
|
|
1,431
|
|
|
|
24.6
|
|
|
|
1,979
|
|
|
|
1,416
|
|
|
|
25.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full reconciliations between Total results and Adjusted results are set out on pages 37 to 38 and the definition of Adjusted
results is set out on page 19.
Intangible asset amortisation and impairment
Intangible asset amortisation was £149 million, compared with £142 million in Q1 2017. There were also intangible asset impairments of
£27 million (Q1 2017: £44 million) related to a commercial asset in Consumer Healthcare. Both of these charges were
non-cash
items.
Major restructuring and integration
Major restructuring
and integration charges incurred in the quarter were £65 million (Q1 2017: £166 million).
Non-cash
charges were £17 million (Q1 2017: £20 million) and cash charges were
£48 million (Q1 2017: £146 million). Cash payments made in the quarter were £104 million (Q1 2017: £213 million) including the settlement of certain charges accrued in previous quarters. The programme delivered
incremental annual cost savings in the quarter of £0.1 billion.
Charges for the combined restructuring and integration programme to date are
£4.8 billion, of which cash charges are £3.5 billion. Cash payments of £3.2 billion have been made to date.
Non-cash
charges are £1.3 billion.
9
|
|
|
Press release
|
|
|
Total cash charges of the programme are now expected to be approximately £4.1 billion and
non-cash
charges up to £1.6 billion. The programme has now delivered approximately £3.7 billion of annual savings, including a currency benefit of £0.4 billion. The programme is now
expected to deliver by 2020 total annual savings of £4.0 billion on a constant currency basis, together with an estimated £0.4 billion of currency benefits on the basis of Q1 2018 average exchange rates.
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £437 million (Q1 2017: £92 million). This primarily reflected £416 million of accounting charges for the
re-measurement
of the contingent
consideration liabilities related to the acquisitions of the former Shionogi-ViiV Healthcare joint venture and the former Novartis Vaccines business, the value attributable to the Consumer Healthcare Joint Venture put option held by Novartis and the
liabilities for the Pfizer put option and Pfizer and Shionogi preferential dividends in ViiV Healthcare.
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Charge/(credit)
|
|
|
|
|
|
|
|
|
Consumer Healthcare Joint Venture put option
|
|
|
495
|
|
|
|
121
|
|
Contingent consideration on former Shionogi-ViiV Healthcare Joint Venture (including Shionogi
preferential dividends)
|
|
|
(31
|
)
|
|
|
48
|
|
ViiV Healthcare put options and Pfizer preferential dividends
|
|
|
(61
|
)
|
|
|
(114
|
)
|
Contingent consideration on former Novartis Vaccines business
|
|
|
13
|
|
|
|
15
|
|
Other adjustments
|
|
|
21
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
Total transaction-related charges
|
|
|
437
|
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
Following the agreement to acquire Novartis interest in the Consumer Healthcare Joint Venture announced on 27 March
2018, a net charge of £495 million has been taken, primarily representing the
re-measurement
of the valuation of the Consumer Healthcare put option to the agreed undiscounted valuation of
$13 billion (£9.2 billion on signing). Between signing and 31 March 2018, the liability increased by £0.1 billion to £9.3 billion due to movements in exchange rates but the additional charge to reflect this
increase was largely offset by gains on hedging contracts that are recorded separately in the balance sheet within Derivative financial instruments. The value of the liability has then been discounted by £106 million to
£9.2 billion to reflect the present value of the liability at 31 March 2018 assuming an expected settlement on 1 June 2018.
The
£31 million credit taken relating to the contingent consideration for the former Shionogi-ViiV Healthcare Joint Venture represented a £132 million reduction in the valuation of the contingent consideration due to Shionogi,
primarily as a result of exchange rate assumptions on forecasts, partly offset by £101 million unwind of the discount. A credit of £61 million has been taken relating to a reduction in the put option liability to Pfizer,
primarily as a result of exchange rate assumptions on forecasts.
Contingent consideration cash payments which are made to Shionogi and other companies
reduce the balance sheet liability and hence are not recorded in the income statement. Total contingent consideration cash payments in the quarter amounted to £517 million (Q1 2017: £160 million). This included a cash milestone
paid to Novartis of $450 million (£317 million), as well as cash payments made by ViiV Healthcare to Shionogi in relation to its contingent consideration liability (including preferential dividends) which amounted to
£197 million (Q1 2017: £159 million).
An explanation of the accounting for the
non-controlling
interests in ViiV Healthcare is set out on page 35.
Divestments, significant legal charges and other items
Divestments and other items included the profit on disposal of a number of other asset disposals, equity investment impairments and certain other adjusting
items. A charge of £5 million (Q1 2017: £55 million) for significant legal matters included the benefit of the settlement of existing matters as well as provisions for ongoing litigation. Significant legal cash payments were
£5 million (Q1 2017: £5 million).
10
|
|
|
Press release
|
|
|
Adjusted results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
% of
turnover
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Turnover
|
|
|
7,222
|
|
|
|
100
|
|
|
|
(2
|
)
|
|
|
4
|
|
|
|
|
|
|
Adjusted cost of sales
|
|
|
(2,179
|
)
|
|
|
(30.2
|
)
|
|
|
(2
|
)
|
|
|
|
|
Adjusted selling, general and administration
|
|
|
(2,286
|
)
|
|
|
(31.7
|
)
|
|
|
(3
|
)
|
|
|
2
|
|
Adjusted research and development
|
|
|
(887
|
)
|
|
|
(12.3
|
)
|
|
|
(3
|
)
|
|
|
2
|
|
Royalty income
|
|
|
53
|
|
|
|
0.8
|
|
|
|
(35
|
)
|
|
|
(34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit
|
|
|
1,923
|
|
|
|
26.6
|
|
|
|
(3
|
)
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit before tax
|
|
|
1,793
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
11
|
|
Adjusted profit after tax
|
|
|
1,431
|
|
|
|
|
|
|
|
1
|
|
|
|
13
|
|
Adjusted profit attributable to shareholders
|
|
|
1,207
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share
|
|
|
24.6
|
p
|
|
|
|
|
|
|
(2
|
)
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
£m
|
|
|
% of
turnover
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Pharmaceuticals
|
|
|
1,941
|
|
|
|
48.4
|
|
|
|
(8
|
)
|
|
|
(1
|
)
|
Pharmaceuticals R&D
|
|
|
(612
|
)
|
|
|
|
|
|
|
(10
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pharmaceuticals
|
|
|
1,329
|
|
|
|
33.2
|
|
|
|
(8
|
)
|
|
|
|
|
Vaccines
|
|
|
339
|
|
|
|
27.4
|
|
|
|
|
|
|
|
18
|
|
Consumer Healthcare
|
|
|
384
|
|
|
|
19.4
|
|
|
|
9
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,052
|
|
|
|
28.4
|
|
|
|
(4
|
)
|
|
|
6
|
|
Corporate & other unallocated costs
|
|
|
(129
|
)
|
|
|
|
|
|
|
(16
|
)
|
|
|
(30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit
|
|
|
1,923
|
|
|
|
26.6
|
|
|
|
(3
|
)
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit
Adjusted operating profit was £1,923 million, 3% AER lower than in Q1 2017 and 9% CER higher on a turnover increase of 4%. The Adjusted operating
margin of 26.6% was 0.2 percentage points lower at AER than in Q1 2017 but 1.3 percentage points higher on a CER basis. This primarily reflected sales growth in all three businesses, a more favourable mix and continued tight control of ongoing costs
across all three businesses as well as benefits from restructuring and integration partly offset by continuing price pressure, particularly in Respiratory, supply chain investments and investments in promotional product support, particularly for new
launches in Respiratory, HIV and Vaccines, and a reduction in royalty income.
Adjusted cost of sales
Cost of sales as a percentage of turnover was 30.2%, up 0.1 percentage points at AER, but down 0.9 percentage points in CER terms compared with Q1 2017. This
reflected a more favourable product mix in Pharmaceuticals in the quarter, particularly the impact of higher HIV sales. There was also a further contribution from integration and restructuring savings in all three businesses. The improvement was
partly offset by continued adverse pricing pressure in Pharmaceuticals, particularly in Respiratory, and in Established Vaccines.
Adjusted selling,
general and administration
SG&A costs as a percentage of turnover were 31.7%, 0.1 percentage points lower at AER than in Q1 2017 and 0.6
percentage points lower on a CER basis. This primarily reflected tight control of ongoing costs, particularly in Consumer Healthcare, as well as further integration and restructuring savings. This was partly offset by increased investment in
promotional product support, particularly for new launches in Respiratory, HIV and Vaccines.
11
|
|
|
Press release
|
|
|
Adjusted research and development
R&D expenditure was £887 million (12.3% of turnover), 3% AER lower than Q1 2017 but 2% higher on a CER basis in comparison with a significant
step-up
in expenditure in Q1 2017. The growth primarily reflected increased investment in the progression of a number of mid and late-stage programmes, partly offset by the benefit of the recent prioritisation
initiatives.
Royalty income
Royalty income was
£53 million (Q1 2017: £82 million), primarily reflecting the patent expiry of Cialis.
Adjusted operating profit by business
Pharmaceuticals operating profit was £1,329 million, down 8% AER, but flat at CER on a turnover increase of 2% CER. The operating margin of 33.2%
was 1.2 percentage points lower at AER than in Q1 2017 and 0.6 percentage points lower on a CER basis. This reflected increased investment in new product support and the continued impact of lower prices, particularly in Respiratory, and the broader
transition of the Respiratory portfolio as well as the reduction in royalty income as a result of the patent expiry of Cialis. The decline was partly offset by a more favourable product mix, primarily driven by the growth in HIV sales, as well as in
prioritisation within R&D.
Vaccines operating profit was £339 million, flat at AER and 18% higher in CER terms on a turnover increase of
13% CER. The operating margin of 27.4% was 2.1 percentage points lower at AER than in Q1 2017, but 1.5 percentage points higher on a CER basis. This was primarily driven by improved product mix together with continued restructuring and integration
benefits, partly offset by increased SG&A resources to support new launches and business growth.
Consumer Healthcare operating profit was
£384 million, up 9% AER and 18% CER higher on a turnover increase of 2% CER. The operating margin of 19.4% was 2.2 percentage points higher than in Q1 2017 and 2.7 percentage points higher on a CER basis. This primarily reflected
continued manufacturing restructuring and integration benefits and improved product mix as well as later phasing of promotional and other operating expenses compared with Q1 2017.
Adjusted net finance costs
Net finance expense was
£139 million compared with £169 million in Q1 2017. The reduction primarily reflected the benefit of a
one-off
accounting adjustment to the amortisation of long term bond interest charges
of £20 million as well as the translation impact of exchange rate movements on the reported Sterling costs of foreign currency denominated interest-bearing instruments.
Adjusted taxation
Tax on Adjusted profit amounted to
£362 million and represented an effective Adjusted tax rate of 20.2% (Q1 2017: 22.0%). See Taxation on page 30 for further details.
Adjusted earnings per share
Adjusted EPS of 24.6p was
down 2% AER but up 11% CER, compared with a 9% CER increase in Adjusted operating profit.
12
|
|
|
Press release
|
|
|
Currency impact on Q1 2018 results
The Q1 2018 results are based on average exchange rates, principally £1/$1.39, £1/1.13 and £1/Yen 151. Comparative exchange rates are
given on page 31. The
period-end
exchange rates were £1/$1.40, £1/1.14 and £1/Yen 149.
In
the quarter, turnover reduced 2% in Sterling terms but increased 4% CER. Total EPS was 11.2p compared with EPS of 21.4p in Q1 2017 and Adjusted EPS was 24.6p compared with 25.0p in Q1 2017, down 2% AER, but up 11% CER. The negative currency
impact primarily reflected the recent strength of Sterling, particularly against the US$ and Yen, relative to Q1 2017. Exchange gains or losses on the settlement of intercompany transactions contributed around one percentage point of the negative
currency impact of thirteen percentage points on Adjusted EPS.
2018 guidance
The Group expects to make continued progress in 2018, although the expectation for Adjusted EPS growth is impacted by a number of factors including, in
particular, uncertainties relating to the timing and extent of potential generic competition to
Advair
in the US.
In the event that no
substitutable generic competitor to
Advair
is introduced to the US market in 2018, the Group continues to expect 2018 Adjusted EPS growth of 4 to 7% at CER. In the first quarter, the Group has made continued progress, with encouraging
performances from new launches,
Shingrix
,
Trelegy
and
Juluca
and other new products, as well as agreeing the buyout of Novartis shareholding in the Consumer Healthcare Joint Venture, subject to shareholder approval.
However, the Group has also seen increased pricing and competitive pressures in the US inhaled respiratory market in the first quarter, and GSK now expects a decline in 2018 US
Advair
sales of around 30% at CER.
In the event of a
mid-year
introduction of a substitutable generic competitor to
Advair
in the US, the Group
expects full year 2018 US
Advair
sales of around £750 million at CER (US$1.30/£1), with Adjusted EPS flat to down 3% at CER.
The effective tax rate for 2018 is expected to be approximately
19-20%
of Adjusted profits after the impact of US tax
reform which is expected to benefit the Group effective tax rate by two to three percentage points.
GSK is not able to give guidance for Total results as
it cannot reliably forecast certain material elements of our Total results such as the future fair value movements on contingent consideration and put options and therefore a reconciliation of the guidance for Adjusted results to equivalent guidance
for Total results is not available without unreasonable effort. It should be noted that contingent consideration cash payments are made each quarter primarily to Shionogi by ViiV Healthcare which reduce the balance sheet liability and are hence not
recorded in the income statement. An explanation of the acquisition-related arrangements with ViiV Healthcare, including details of cash payments to Shionogi, is set out on page 35.
If exchange rates were to hold at the closing rates on 31 March 2018 ($1.40/£1, 1.14/£1 and Yen 149/£1) for the rest of 2018, the
estimated negative impact on full-year 2018 Sterling turnover growth would be around 5% and if exchange gains or losses were recognised at the same level as in 2017, the estimated negative impact on 2018 Sterling Adjusted EPS growth would be around
8%.
13
|
|
|
Press release
|
|
|
Cash generation and conversion
Cash flow and net debt
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
Q1 2017
|
|
Net cash inflow from operating activities (£m)
|
|
|
863
|
|
|
|
1,144
|
|
Free cash flow* (£m)
|
|
|
324
|
|
|
|
650
|
|
Free cash flow growth (%)
|
|
|
(50
|
)%
|
|
|
>100
|
%
|
Free cash flow conversion* (%)
|
|
|
59
|
%
|
|
|
62
|
%
|
Net debt (£m)
|
|
|
13,377
|
|
|
|
13,743
|
|
|
|
|
|
|
|
|
|
|
*
|
Free cash flow and free cash flow conversion are
non-IFRS
measures and are defined on page 19 and a reconciliation to the nearest IFRS measure is available on page 34.
|
Q1 2018
The net cash inflow from
operating activities for the quarter was £863 million (Q1 2017: £1,144 million). The reduction primarily reflected the payment of the $450 million (£317 million) milestone to Novartis relating to the
non-US
sales of
Bexsero
, of which £269 million was recognised in cashflows from operating activities and £48 million was recognised in contingent consideration paid within investing cash
flows, as well as a negative currency impact on operating profit. This was partly offset by lower restructuring payments and a smaller increase in seasonal inventory and receivables compared with Q1 2017.
Total cash payments to Shionogi in relation to the ViiV Healthcare contingent consideration liability in the quarter were £197 million, of which
£174 million was recognised in cash flows from operating activities and £23 million was recognised in contingent consideration paid within investing cash flows. These payments are deductible for tax purposes.
Free cash flow was £324 million for the quarter (Q1 2017: £650 million). The reduction primarily reflected the payment of the
$450 million (£317 million) milestone to Novartis relating to the
non-US
sales of
Bexsero
, as well as an £80 million quarterly dividend payment to
non-controlling
interests and a negative currency impact on operating profit. This was partly offset by lower restructuring payments and capital expenditures as well as a smaller increase in seasonal inventory
and receivables compared with Q1 2017.
Net debt
At
31 March 2018, net debt was £13.4 billion, compared with £13.2 billion at 31 December 2017, comprising gross debt of £17.5 billion and cash and liquid investments of £4.1 billion. Net debt
increased as the reduced free cash flow of £0.3 billion, reflecting the milestone payment to Novartis, together with a £0.3 billion favourable exchange impact from the translation of
non-Sterling
denominated debt, was more than offset by the dividends paid to shareholders of £0.9 billion.
At 31 March 2018, GSK had short-term borrowings (including overdrafts) repayable within 12 months of £3.4 billion with loans of
£1.3 billion repayable in the subsequent year.
Working capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 March
2018
|
|
|
31 December
2017
|
|
|
30 September
2017
|
|
|
30 June
2017
|
|
|
31 March
2017
|
|
Working capital conversion cycle* (days)
|
|
|
204
|
|
|
|
191
|
|
|
|
210
|
|
|
|
207
|
|
|
|
203
|
|
Working capital percentage of turnover (%)
|
|
|
24
|
|
|
|
22
|
|
|
|
25
|
|
|
|
24
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Working capital conversion cycle is defined on page 19.
|
The increase in Q1 2018 of 13 days compared with
December 2017 was predominantly due to seasonal factors and building of inventory for new product launches, a similar pattern to Q1 2017, the phasing of trade receivables and lower trade payables as a result of lower costs in the quarter.
14
|
|
|
Press release
|
|
|
Returns to shareholders
Quarterly dividends
The Board has declared a first
interim dividend for 2018 of 19 pence per share (Q1 2017: 19 pence per share).
GSK recognises the importance of dividends to shareholders and aims to
distribute regular dividend payments that will be determined primarily with reference to the free cash flow generated by the business after funding the investment necessary to support the Groups future growth.
The Board intends to maintain the dividend for 2018 at the current level of 80p per share, subject to any material change in the external environment or
performance expectations. Over time, as free cash flow strengthens, it intends to build free cash flow cover of the annual dividend to a target range of
1.25-1.50x,
before returning the dividend to growth.
Payment of dividends
The equivalent interim
dividend receivable by ADR holders will be calculated based on the exchange rate on 10 July 2018. An annual fee of $0.02 per ADS (or $0.005 per ADS per quarter) is charged by the Depositary.
The
ex-dividend
date will be 10 May 2018, with a record date of 11 May 2018 and a payment date of
12 July 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid/
payable
|
|
|
Pence per
share
|
|
|
£m
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
First interim
|
|
|
12 July 2018
|
|
|
|
19
|
|
|
|
933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
First interim
|
|
|
13 July 2017
|
|
|
|
19
|
|
|
|
928
|
|
Second interim
|
|
|
12 October 2017
|
|
|
|
19
|
|
|
|
929
|
|
Third interim
|
|
|
11 January 2018
|
|
|
|
19
|
|
|
|
929
|
|
Fourth interim
|
|
|
12 April 2018
|
|
|
|
23
|
|
|
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
|
3,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GSK made no share repurchases during the period. The company issued 1 million shares under employee share schemes for
proceeds of £11 million (Q1 2017: £32 million).
The weighted average number of shares for Q1 2018 was 4,903 million, compared with
4,877 million in Q1 2017.
15
|
|
|
Press release
|
|
|
Research and development
GSK remains focused on delivering an improved return on its investment in R&D. Sales contribution, reduced attrition, cost reduction and time to market are
all important drivers of an improving internal rate of return. R&D expenditure is not determined as a percentage of sales but instead capital is allocated using strict returns based criteria depending on the pipeline opportunities available.
The R&D operations in Pharmaceuticals are broadly split into Discovery activities (up to the completion of Phase IIa trials) and Development work
(from Phase IIb onwards) each supported by specific and common infrastructure and other shared services where appropriate. R&D expenditure for Q1 2018 is analysed below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Discovery
|
|
|
206
|
|
|
|
250
|
|
|
|
(18
|
)
|
|
|
(12
|
)
|
Development
|
|
|
314
|
|
|
|
325
|
|
|
|
(3
|
)
|
|
|
4
|
|
Facilities and central support functions
|
|
|
146
|
|
|
|
147
|
|
|
|
(1
|
)
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
|
|
666
|
|
|
|
722
|
|
|
|
(8
|
)
|
|
|
(1
|
)
|
Vaccines
|
|
|
161
|
|
|
|
136
|
|
|
|
18
|
|
|
|
18
|
|
Consumer Healthcare
|
|
|
60
|
|
|
|
61
|
|
|
|
(2
|
)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D
|
|
|
887
|
|
|
|
919
|
|
|
|
(3
|
)
|
|
|
2
|
|
Amortisation and impairment of intangible assets
|
|
|
10
|
|
|
|
20
|
|
|
|
|
|
|
|
|
|
Major restructuring costs
|
|
|
3
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
Divestments, significant legal and other items
|
|
|
4
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total R&D
|
|
|
904
|
|
|
|
960
|
|
|
|
(6
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In Q1 2018, Total R&D expenditure declined 6% AER, 1% CER. Adjusted R&D expenditure declined 3% AER, but increased 2%
CER, with Pharmaceuticals down 8% AER, 1% CER. The reduced growth of Discovery primarily reflected the quarterly phasing of expenditure on specific programmes, including the transfer of certain oncology assets into the development phase. The
increase in Vaccines R&D primarily reflected the benefit of comparison with favourable phasing of expenditure in Q1 2017.
R&D pipeline
Key
Pharmaceuticals assets
At our Business update to investors on 26 July 2017, we confirmed an increased focus on delivery of several key assets in
our Pharmaceuticals pipeline. We remain focused on delivering value and continue to evaluate and explore the best route to market for these assets, including potential options for partnering or collaborations.
Pipeline news flow since Q4 2017:
Vaccines
Our Vaccines business is one of the largest in the world with the broadest portfolio of any company. The focus of GSK Vaccines pipeline is to maintain
GSKs meningococcal meningitis market leadership with both licensed and candidate vaccines. In addition, we are pursuing a full RSV portfolio for infants, for maternal immunisation and for older adults, with different approaches tailored to the
specific segments. This portfolio has the potential to deliver a series of first and/or best in class vaccines. In addition, we continue to leverage our unique technology platforms to target new, emerging or remaining medical needs.
Shingrix
|
|
|
On 23 March 2018, GSK announced that
Shingrix
was approved in Europe and Japan for the prevention of shingles in adults aged 50 and over.
|
16
|
|
|
Press release
|
|
|
Influenza vaccine
|
|
|
On 6 March 2018, GSK announced new data published in
The Lancet Child
& Adolescent Health
from a Phase III clinical trial with
Fluarix Tetra
(inactivated quadrivalent influenza
vaccine) which prevented influenza A and B in children six to 35 months of age;
|
|
|
|
On 15 February 2018, GSK announced the expanded indication for
Fluarix Tetra
has been approved in Europe to include adults and now children from six months of age for the prevention of influenza disease
caused by the two influenza A strains and the two influenza B strains contained in the vaccine.
|
Respiratory
GSK has been a leader in respiratory disease for nearly 50 years. We remain at the cutting-edge of scientific research into respiratory medicine, working in
collaboration with patients and the scientific community to offer innovative medicines aimed at helping to treat patients symptoms and reduce the risk of their disease worsening. While respiratory diseases are clinically distinct, there are
important pathophysiological features that span them, and our ambition is to have the most comprehensive portfolio of medicines to address a diverse range of respiratory diseases. To achieve this, we are focusing on targeting the underlying
disease-driving biological processes to develop medicines with applicability across multiple respiratory diseases. This approach requires extensive bioinformatics, data analytic capabilities, careful patient selection and stratification by phenotype
in our clinical trials.
Relvar/Breo Ellipta
|
|
|
On 8 March 2018, GSK and Innoviva announced that the European Commission has approved a positive label update for
Relvar Ellipta
in patients with asthma;
|
|
|
|
In March 2018, a phase IV study was commenced to evaluate the benefit of a Connected Inhaler System (CIS) on increasing adherence to maintenance treatment in patients with uncontrolled asthma using
Relvar
Ellipta
.
|
Trelegy Ellipta
|
|
|
On 24 April 2018, GSK announced that once-daily
Trelegy Ellipta
gained an expanded indication in the US for the treatment of patients with COPD based on evidence from the IMPACT study;
|
|
|
|
On 18 April 2018, GSK and Innoviva announced landmark IMPACT study published in NEJM showing significant benefits of
Trelegy Ellipta
for patients with COPD;
|
|
|
|
On 14 February 2018, GSK and Innoviva announced the submission of the landmark IMPACT data to the European Medicines Agency as part of a type II variation to support an expanded label for
Trelegy Ellipta
in
Europe for the maintenance treatment of moderate to severe chronic pulmonary disease (COPD).
|
Nucala
|
|
|
On 5 March 2018 GSK, announced positive clinical study outcomes for severe eosinophilic asthma patients uncontrolled on omalizumab (Xolair) when switched to mepolizumab in an open-label single arm study.
|
HIV/Infectious diseases
GSK has a
long-standing commitment to HIV and infectious diseases our scientists discovered amoxycillin, the widely used antibiotic, over 40 years ago, and developed the first medicines approved to treat HIV (AZT), HBV (lamivudine), herpes viruses
(acyclovir) and influenza (zanamivir). Today, we are investigating new medicines to treat, prevent and possibly, ultimately cure HIV and other infectious diseases. Our scientists are committed to developing medicines that advance HIV care by
exploring new treatment paradigms
(2-drug
regimens), new modalities (long-acting injectables) and new mechanisms of actions (including maturation inhibitors and broadly neutralising antibodies).
Tivicay
|
|
|
On 5 March 2018, ViiV Healthcare announced positive new dolutegravir data for the treatment of people living with HIV
co-infected
with tuberculosis. The INSPIRING study
results contribute to the extensive body of evidence for dolutegravir, the leading integrase strand transfer inhibitor, in diverse and hard to treat patient populations.
|
Juluca
|
|
|
On 23 March 2018, ViiV Healthcare announced that the European Committee for Medicinal Products for Human Use (CHMP) has issued a Positive Opinion recommending marketing authorisation for
Juluca
for the
treatment of HIV infection in adults who are virologically suppressed.
|
17
|
|
|
Press release
|
|
|
Dolutegravir + lamivudine
|
|
|
On 8 February 2018, ViiV Healthcare announced the launch of the eight phase III study in
two-drug
regimen programmes with the start of the TANGO study investigating
dolutegravir (
Tivicay
) and lamivudine (
Epivir
) in patients with HIV who have achieved viral suppression on a tenofavir alafenamide fumarate-based regimen.
|
Immuno-inflammation
Immuno-inflammatory diseases are
relatively common, chronic, debilitating conditions. While diverse in presentation, they are collectively hallmarked by impairment of quality of life and can lead to premature mortality. There is significant unmet need for improved treatment options
for immuno-inflammatory diseases in terms of higher levels of remission and more durable maintenance of benefit. To discover the next breakthrough for immune-mediated diseases, we are working to develop transformational medicines that could
potentially alter the course of inflammatory disease and induce sustainable remission. Our highly innovative discovery programme focuses on cytokines, chemokines and complement, epigenetics,
T-cell
biology and
pattern recognition receptors.
Benlysta
|
|
|
On 20 March 2018, GSK announced the start of a phase III study investigating
Benlysta
(belimumab) in combination with rituximab in adult patients with systemic lupus erythematosus (SLE). This study will
assess whether
co-administration
enhances the treatment effect of belimumab and provides sustained disease control, which could lead to clinical remission.
|
Oncology
Cancer is one of the leading causes of death in
the developed world. GSK is focused on delivering transformational therapies for cancer patients that may help to maximise their survival. GSKs pipeline is focused on immuno-oncology, cell therapy, and epigenetics. Our goal is to achieve a
sustainable flow of new treatments for cancer patients based on a diversified portfolio of investigational medicines utilising modalities such as small molecules, antibodies, multi-specific molecules, adjuvants and cells, either alone or in
combination.
|
|
|
There have been no further significant developments on the assets in this area since the Q4 2017 Results Announcement.
|
Future pipeline optionality
To retain scientific
optionality outside of the four core areas, we have established three groups primarily focused on early stage activities in areas where the emerging science suggests the potential to develop future transformational medicines. These include
Neuroscience, where GSK has several highly competitive programmes in the areas of neurodegeneration and neuro-excitation; Exploratory discovery, where we are pursuing novel targets in new pathways and emerging areas of science, and Global health
discovery, with a particular focus on diseases of the developing world and other areas of global health.
Daprodustat
|
|
|
Positive results in house from first of three phase III studies for daprodustat in Japan; data to be presented at an upcoming scientific conference.
|
Dezamizumab
(anti-SAP
mAb) + miridesap (SAP depleter)
|
|
|
On 26 March 2018, the FDA granted
anti-SAP
as a Fast Track development program for the treatment of systemic amyloidosis.
|
Rare diseases
|
|
|
On 12 April 2018, GSK and Orchard Therapeutics announced a strategic agreement to transfer GSKs portfolio of approved and investigational rare diseases gene therapies to Orchard, securing the continued
development of the programmes and access for patients. GSK will continue to invest in the development of its platform capabilities in cell and gene therapies, with a focus on oncology.
|
18
|
|
|
Press release
|
|
|
Definitions
GSK uses a number of adjusted,
non-IFRS,
measures to report the performance of its business. These measures are used by
management for planning and reporting purposes and in discussions with and presentations to investment analysts and rating agencies and may not be directly comparable with similarly described measures used by other companies.
Non-IFRS
measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS.
Total results
Total reported results represent the
Groups overall performance. However, these results can contain material unusual or
non-operational
items that may obscure the key trends and factors determining the Groups operational performance.
As a result, GSK also reports Adjusted results, which is a
non-IFRS
measure.
Adjusted results
Adjusted results exclude the following items from Total results: amortisation and impairment of intangible assets (excluding computer software) and goodwill;
major restructuring costs, including those costs following material acquisitions; significant legal charges (net of insurance recoveries) and expenses on the settlement of litigation and government investigations, transaction-related accounting
adjustments for significant acquisitions, and other items, including disposals of associates, products and businesses and other operating income other than royalty income, together with the tax effects of all of these items and the impact of the
enactment of the US Tax Cuts and Jobs Act in 2017.
GSK believes that Adjusted results are more representative of the performance of the Groups
operations and allow the key trends and factors driving that performance to be more easily and clearly identified by shareholders. The definition of Adjusted results, as set out above, also aligns the Groups results with the majority of its
peer companies and how they report earnings.
Reconciliations between Total and Adjusted results, as set out on pages 9, and 37 to 38, including detailed
breakdowns of the key adjusting items, are provided to shareholders to ensure full visibility and transparency as they assess the Groups performance.
Free cash flow
Free cash flow, which is a
non-IFRS
measure, is defined as the net cash inflow from operating activities less capital expenditure, contingent consideration payments, net interest, and dividends paid to
non-controlling
interests plus proceeds from the sale of property, plant and equipment, and dividends received from joint ventures and associates. It is used by management for planning and reporting purposes
and in discussions with and presentations to investment analysts and rating agencies. Free cash flow growth is calculated on a reported basis. A reconciliation of net cash inflow from operations to free cash flow is set out on page 34.
Free cash flow conversion
Free cash flow conversion is
free cash flow as a percentage of earnings.
Working capital conversion cycle
The working capital conversion cycle is calculated as the number of days sales outstanding plus days inventory outstanding, less days purchases outstanding.
CER and AER growth
In order to illustrate
underlying performance, it is the Groups practice to discuss its results in terms of constant exchange rate (CER) growth. This represents growth calculated as if the exchange rates used to determine the results of overseas companies in
Sterling had remained unchanged from those used in the comparative period. CER% represents growth at constant exchange rates. £% or AER% represents growth at actual exchange rates.
Brand names and partner acknowledgements
Brand names
appearing in italics throughout this document are trademarks of GSK or associated companies or used under licence by the Group. Xolair is a trademark of Novartis AG and Cialis is a trademark of Eli Lilly and Company.
19
|
|
|
Press release
|
|
|
Outlook assumptions and cautionary statements
Assumptions related to 2018 guidance and 2016-2020 outlook
In outlining the expectations for 2018 and the five-year period 2016-2020, the Group has made certain assumptions about the healthcare sector, the different
markets in which the Group operates and the delivery of revenues and financial benefits from its current portfolio, pipeline and restructuring programmes.
For the Group specifically, over the period to 2020 GSK expects further declines in sales of
Seretide/Advair
. The introduction of a generic alternative
to
Advair
in the US has been factored into the Groups assessment of its future performance. The Group assumes no premature loss of exclusivity for other key products over the period.
The assumptions for the Groups revenue and earnings expectations assume no material interruptions to supply of the Groups products and no material
mergers, acquisitions, disposals, litigation costs or share repurchases for the Company; and no change in the Groups shareholdings in ViiV Healthcare or Consumer Healthcare (other than the buyout of Novartis shareholding, which is
expected to complete on 1 June 2018, subject to shareholder approval). The assumptions also assume no material changes in the macro-economic and healthcare environment. The 2018 guidance and 2016-2020 outlook have factored in all divestments
and product exits since 2015, including the divestment and exit of more than 130
non-core
tail brands (£0.5 billion in annual sales) as announced on 26 July 2017.
The Groups expectations assume successful delivery of the Groups integration and restructuring plans over the period 2016-2020 including the
extension and enhancement to the combined programme announced on 26 July 2017. Material costs for investment in new product launches and R&D have been factored into the expectations given. Given the potential development options in the
Groups pipeline, the outlook may be affected by additional data-driven R&D investment decisions. The expectations are given on a constant currency basis (2016-2020 outlook at 2015 CER). Subject to material changes in the product mix, and
following the enactment of US tax reform, the Groups medium-term effective tax rate is expected to be in the region of
19-20%
of Adjusted profits. This incorporates managements best estimates of
the impact of US tax reform on the Group based on the information currently available. As more information on the detailed application of the US Tax Cuts and Jobs Act becomes available, the assumptions underlying these estimates could change with
consequent adjustments to the charges taken that could have a material impact on the results of the Group.
Assumptions and cautionary statement
regarding forward-looking statements
The Groups management believes that the assumptions outlined above are reasonable, and that the
aspirational targets described in this report are achievable based on those assumptions. However, given the longer term nature of these expectations and targets, they are subject to greater uncertainty, including potential material impacts if the
above assumptions are not realised, and other material impacts related to foreign exchange fluctuations, macroeconomic activity, changes in regulation, government actions or intellectual property protection, actions by our competitors, and other
risks inherent to the industries in which we operate.
This document contains statements that are, or may be deemed to be, forward-looking
statements. Forward-looking statements give the Groups current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use
words such as anticipate, estimate, expect, intend, will, project, plan, believe, target and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated
products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should,
however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any
particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements.
Forward-looking statements
are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Groups control or precise estimate. The Group cautions investors that a number of important factors, including those in this
document, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under Item 3.D Risk Factors in the Groups
Annual Report on Form
20-F
for 2017. Any forward looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the
Directors on the date of this report.
20
|
|
|
Press release
|
|
|
Contacts
GSK
one of the worlds leading research-based pharmaceutical and healthcare companies is committed to improving the quality of human
life by enabling people to do more, feel better and live longer. For further information please visit
www.gsk.com
.
GSK enquiries:
|
|
|
|
|
|
|
UK Media enquiries:
|
|
Simon Steel
|
|
+44 (0) 20 8047 5502
|
|
(London)
|
|
|
|
|
US Media enquiries:
|
|
Sarah Alspach
|
|
+1 202 715 1048
|
|
(Washington)
|
|
|
Sarah Spencer
|
|
+1 215 751 3335
|
|
(Philadelphia)
|
|
|
|
|
Analyst/Investor enquiries:
|
|
Sarah Elton-Farr
|
|
+44 (0) 20 8047 5194
|
|
(London)
|
|
|
James Dodwell
|
|
+44 (0) 20 8047 2406
|
|
(London)
|
|
|
Danielle Smith
|
|
+44 (0) 20 8047 7562
|
|
(London)
|
|
|
Tom Curry
|
|
+1 215 751 5419
|
|
(Philadelphia)
|
|
|
Jeff McLaughlin
|
|
+1 215 751 7002
|
|
(Philadelphia)
|
Registered in England & Wales:
No. 3888792
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
21
|
|
|
Press release
|
|
|
Financial information
Income statement
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
TURNOVER
|
|
|
7,222
|
|
|
|
7,384
|
|
Cost of sales
|
|
|
(2,391
|
)
|
|
|
(2,513
|
)
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
4,831
|
|
|
|
4,871
|
|
Selling, general and administration
|
|
|
(2,311
|
)
|
|
|
(2,452
|
)
|
Research and development
|
|
|
(904
|
)
|
|
|
(960
|
)
|
Royalty income
|
|
|
53
|
|
|
|
82
|
|
Other operating income/(expense)
|
|
|
(429
|
)
|
|
|
177
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
1,240
|
|
|
|
1,718
|
|
Finance income
|
|
|
20
|
|
|
|
21
|
|
Finance expense
|
|
|
(162
|
)
|
|
|
(194
|
)
|
Share of after tax profits of associates and joint ventures
|
|
|
9
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
|
|
1,107
|
|
|
|
1,550
|
|
Taxation
|
|
|
(348
|
)
|
|
|
(327
|
)
|
Tax rate %
|
|
|
31.4
|
%
|
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE PERIOD
|
|
|
759
|
|
|
|
1,223
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling
interests
|
|
|
210
|
|
|
|
177
|
|
Profit attributable to shareholders
|
|
|
549
|
|
|
|
1,046
|
|
|
|
|
|
|
|
|
|
|
|
|
759
|
|
|
1,223
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
11.2
|
p
|
|
|
21.4
|
p
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
11.1
|
p
|
|
|
21.3
|
p
|
|
|
|
|
|
|
|
|
|
22
|
|
|
Press release
|
|
|
Statement of comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Profit for the period
|
|
|
759
|
|
|
|
1,223
|
|
Items that may be reclassified subsequently to income statement:
|
|
|
|
|
|
|
|
|
Exchange movements on overseas net assets and net investment hedges
|
|
|
66
|
|
|
|
196
|
|
Fair value movements on cash flow hedges
|
|
|
22
|
|
|
|
(2
|
)
|
Deferred tax on fair value movements on cash flow hedges
|
|
|
|
|
|
|
(1
|
)
|
Reclassification of cash flow hedges to income statement
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
|
|
|
193
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to income statement:
|
|
|
|
|
|
|
|
|
Exchange movements on overseas net assets of
non-controlling
interests
|
|
|
(28
|
)
|
|
|
27
|
|
Fair value movements on equity investments
|
|
|
97
|
|
|
|
49
|
|
Deferred tax on fair value movements on equity investments
|
|
|
(9
|
)
|
|
|
(3
|
)
|
Re-measurement
gains on defined benefit plans
|
|
|
186
|
|
|
|
234
|
|
Tax on
re-measurement
gains on defined benefit
plans
|
|
|
(38
|
)
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
208
|
|
|
252
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income for the period
|
|
|
265
|
|
|
|
445
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
|
1,024
|
|
|
|
1,668
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period attributable to:
|
|
|
|
|
|
|
|
|
Shareholders
|
|
|
842
|
|
|
|
1,464
|
|
Non-controlling
interests
|
|
|
182
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
1,024
|
|
|
1,668
|
|
|
|
|
|
|
|
|
|
|
23
|
|
|
Press release
|
|
|
Pharmaceuticals turnover three months ended
31 March 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
US
|
|
|
Europe
|
|
|
International
|
|
|
|
|
|
|
Growth
|
|
|
|
|
|
Growth
|
|
|
|
|
|
Growth
|
|
|
|
|
|
Growth
|
|
|
|
£m
|
|
|
£%
|
|
|
CER%
|
|
|
£m
|
|
|
£%
|
|
|
CER%
|
|
|
£m
|
|
|
£%
|
|
|
CER%
|
|
|
£m
|
|
|
£%
|
|
|
CER%
|
|
Respiratory
|
|
|
1,575
|
|
|
|
(6
|
)
|
|
|
|
|
|
|
662
|
|
|
|
(14
|
)
|
|
|
(4
|
)
|
|
|
388
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
525
|
|
|
|
(2
|
)
|
|
|
6
|
|
Seretide/Advair
|
|
|
566
|
|
|
|
(25
|
)
|
|
|
(20
|
)
|
|
|
229
|
|
|
|
(32
|
)
|
|
|
(25
|
)
|
|
|
166
|
|
|
|
(19
|
)
|
|
|
(21
|
)
|
|
|
171
|
|
|
|
(17
|
)
|
|
|
(12
|
)
|
Ellipta
products
|
|
|
386
|
|
|
|
25
|
|
|
|
34
|
|
|
|
207
|
|
|
|
16
|
|
|
|
29
|
|
|
|
103
|
|
|
|
41
|
|
|
|
38
|
|
|
|
76
|
|
|
|
36
|
|
|
|
43
|
|
Anoro Ellipta
|
|
|
97
|
|
|
|
56
|
|
|
|
68
|
|
|
|
60
|
|
|
|
50
|
|
|
|
67
|
|
|
|
24
|
|
|
|
71
|
|
|
|
71
|
|
|
|
13
|
|
|
|
62
|
|
|
|
62
|
|
Arnuity Ellipta
|
|
|
11
|
|
|
|
37
|
|
|
|
50
|
|
|
|
10
|
|
|
|
25
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
>100
|
|
|
|
>100
|
|
Incruse Ellipta
|
|
|
48
|
|
|
|
41
|
|
|
|
50
|
|
|
|
27
|
|
|
|
35
|
|
|
|
50
|
|
|
|
16
|
|
|
|
60
|
|
|
|
60
|
|
|
|
5
|
|
|
|
25
|
|
|
|
25
|
|
Relvar/Breo Ellipta
|
|
|
219
|
|
|
|
7
|
|
|
|
14
|
|
|
|
100
|
|
|
|
(10
|
)
|
|
|
1
|
|
|
|
62
|
|
|
|
27
|
|
|
|
22
|
|
|
|
57
|
|
|
|
30
|
|
|
|
39
|
|
Trelegy Ellipta
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nucala
|
|
|
104
|
|
|
|
76
|
|
|
|
86
|
|
|
|
59
|
|
|
|
40
|
|
|
|
57
|
|
|
|
31
|
|
|
|
>100
|
|
|
|
>100
|
|
|
|
14
|
|
|
|
>100
|
|
|
|
>100
|
|
Avamys
/
Veramyst
|
|
|
98
|
|
|
|
8
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
(5
|
)
|
|
|
(10
|
)
|
|
|
78
|
|
|
|
11
|
|
|
|
20
|
|
Flixotide/Flovent
|
|
|
158
|
|
|
|
(4
|
)
|
|
|
4
|
|
|
|
86
|
|
|
|
(3
|
)
|
|
|
7
|
|
|
|
27
|
|
|
|
(4
|
)
|
|
|
(7
|
)
|
|
|
45
|
|
|
|
(4
|
)
|
|
|
4
|
|
Ventolin
|
|
|
180
|
|
|
|
(16
|
)
|
|
|
(9
|
)
|
|
|
81
|
|
|
|
(31
|
)
|
|
|
(23
|
)
|
|
|
34
|
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
|
65
|
|
|
|
5
|
|
|
|
15
|
|
Other
|
|
|
83
|
|
|
|
(13
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
(12
|
)
|
|
|
|
|
|
|
76
|
|
|
|
(12
|
)
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
|
|
1,048
|
|
|
|
6
|
|
|
|
14
|
|
|
|
629
|
|
|
|
3
|
|
|
|
15
|
|
|
|
299
|
|
|
|
15
|
|
|
|
12
|
|
|
|
120
|
|
|
|
3
|
|
|
|
11
|
|
Epzicom/Kivexa
|
|
|
37
|
|
|
|
(53
|
)
|
|
|
(52
|
)
|
|
|
3
|
|
|
|
(79
|
)
|
|
|
(79
|
)
|
|
|
14
|
|
|
|
(64
|
)
|
|
|
(64
|
)
|
|
|
20
|
|
|
|
(23
|
)
|
|
|
(19
|
)
|
Juluca
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selzentry
|
|
|
29
|
|
|
|
(24
|
)
|
|
|
(16
|
)
|
|
|
15
|
|
|
|
(25
|
)
|
|
|
(15
|
)
|
|
|
9
|
|
|
|
(10
|
)
|
|
|
(10
|
)
|
|
|
5
|
|
|
|
(37
|
)
|
|
|
(25
|
)
|
Tivicay
|
|
|
348
|
|
|
|
15
|
|
|
|
24
|
|
|
|
228
|
|
|
|
14
|
|
|
|
27
|
|
|
|
88
|
|
|
|
26
|
|
|
|
21
|
|
|
|
32
|
|
|
|
|
|
|
|
13
|
|
Triumeq
|
|
|
606
|
|
|
|
12
|
|
|
|
20
|
|
|
|
366
|
|
|
|
2
|
|
|
|
13
|
|
|
|
182
|
|
|
|
36
|
|
|
|
32
|
|
|
|
58
|
|
|
|
29
|
|
|
|
38
|
|
Other
|
|
|
18
|
|
|
|
(30
|
)
|
|
|
(26
|
)
|
|
|
7
|
|
|
|
(50
|
)
|
|
|
(43
|
)
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
(14
|
)
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-inflammation
|
|
|
100
|
|
|
|
9
|
|
|
|
20
|
|
|
|
89
|
|
|
|
6
|
|
|
|
17
|
|
|
|
8
|
|
|
|
33
|
|
|
|
33
|
|
|
|
3
|
|
|
|
50
|
|
|
|
100
|
|
Benlysta
|
|
|
100
|
|
|
|
10
|
|
|
|
21
|
|
|
|
89
|
|
|
|
7
|
|
|
|
18
|
|
|
|
9
|
|
|
|
50
|
|
|
|
33
|
|
|
|
2
|
|
|
|
|
|
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Pharmaceuticals
|
|
|
1,286
|
|
|
|
(10
|
)
|
|
|
(5
|
)
|
|
|
190
|
|
|
|
(30
|
)
|
|
|
(22
|
)
|
|
|
332
|
|
|
|
(8
|
)
|
|
|
(11
|
)
|
|
|
764
|
|
|
|
(4
|
)
|
|
|
4
|
|
Dermatology
|
|
|
107
|
|
|
|
(5
|
)
|
|
|
|
|
|
|
1
|
|
|
|
>100
|
|
|
|
>100
|
|
|
|
39
|
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
|
67
|
|
|
|
(7
|
)
|
|
|
3
|
|
Augmentin
|
|
|
164
|
|
|
|
6
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
|
|
|
|
4
|
|
|
|
|
|
|
|
109
|
|
|
|
7
|
|
|
|
19
|
|
Avodart
|
|
|
141
|
|
|
|
(12
|
)
|
|
|
(9
|
)
|
|
|
3
|
|
|
|
(40
|
)
|
|
|
(20
|
)
|
|
|
64
|
|
|
|
(23
|
)
|
|
|
(24
|
)
|
|
|
74
|
|
|
|
3
|
|
|
|
10
|
|
Coreg
|
|
|
15
|
|
|
|
(57
|
)
|
|
|
(54
|
)
|
|
|
15
|
|
|
|
(57
|
)
|
|
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eperzan/Tanzeum
|
|
|
13
|
|
|
|
(53
|
)
|
|
|
(48
|
)
|
|
|
12
|
|
|
|
(55
|
)
|
|
|
(50
|
)
|
|
|
1
|
|
|
|
(32
|
)
|
|
|
(34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Imigran/Imitrex
|
|
|
32
|
|
|
|
(40
|
)
|
|
|
(38
|
)
|
|
|
12
|
|
|
|
(60
|
)
|
|
|
(57
|
)
|
|
|
15
|
|
|
|
(6
|
)
|
|
|
(6
|
)
|
|
|
5
|
|
|
|
(29
|
)
|
|
|
(29
|
)
|
Lamictal
|
|
|
146
|
|
|
|
(12
|
)
|
|
|
(5
|
)
|
|
|
71
|
|
|
|
(20
|
)
|
|
|
(11
|
)
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
|
|
(4
|
)
|
|
|
4
|
|
Requip
|
|
|
21
|
|
|
|
(22
|
)
|
|
|
(19
|
)
|
|
|
2
|
|
|
|
(50
|
)
|
|
|
(50
|
)
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
(24
|
)
|
|
|
(18
|
)
|
Serevent
|
|
|
20
|
|
|
|
(23
|
)
|
|
|
(15
|
)
|
|
|
10
|
|
|
|
(33
|
)
|
|
|
(20
|
)
|
|
|
8
|
|
|
|
(11
|
)
|
|
|
(22
|
)
|
|
|
2
|
|
|
|
|
|
|
|
50
|
|
Seroxat/Paxil
|
|
|
40
|
|
|
|
(11
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
11
|
|
|
|
11
|
|
|
|
30
|
|
|
|
(17
|
)
|
|
|
(8
|
)
|
Valtrex
|
|
|
28
|
|
|
|
(10
|
)
|
|
|
(3
|
)
|
|
|
3
|
|
|
|
(25
|
)
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
(10
|
)
|
|
|
(5
|
)
|
Zeffix
|
|
|
19
|
|
|
|
(27
|
)
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
(28
|
)
|
|
|
(24
|
)
|
Other
|
|
|
540
|
|
|
|
(4
|
)
|
|
|
1
|
|
|
|
61
|
|
|
|
(1
|
)
|
|
|
8
|
|
|
|
100
|
|
|
|
(8
|
)
|
|
|
(12
|
)
|
|
|
379
|
|
|
|
(4
|
)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
|
|
4,009
|
|
|
|
(4
|
)
|
|
|
2
|
|
|
|
1,570
|
|
|
|
(9
|
)
|
|
|
1
|
|
|
|
1,027
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
1,412
|
|
|
|
(3
|
)
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
Press release
|
|
|
Vaccines turnover three months ended 31 March
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
US
|
|
|
Europe
|
|
|
International
|
|
|
|
£m
|
|
|
Growth
|
|
|
£m
|
|
|
Growth
|
|
|
£m
|
|
|
Growth
|
|
|
£m
|
|
|
Growth
|
|
|
|
|
£%
|
|
|
CER%
|
|
|
|
£%
|
|
|
CER%
|
|
|
|
£%
|
|
|
CER%
|
|
|
|
£%
|
|
|
CER%
|
|
Meningitis
|
|
|
180
|
|
|
|
(6
|
)
|
|
|
(2
|
)
|
|
|
55
|
|
|
|
20
|
|
|
|
33
|
|
|
|
99
|
|
|
|
(5
|
)
|
|
|
(8
|
)
|
|
|
26
|
|
|
|
(37
|
)
|
|
|
(24
|
)
|
Bexsero
|
|
|
139
|
|
|
|
10
|
|
|
|
13
|
|
|
|
31
|
|
|
|
15
|
|
|
|
26
|
|
|
|
92
|
|
|
|
11
|
|
|
|
7
|
|
|
|
16
|
|
|
|
|
|
|
|
25
|
|
Menveo
|
|
|
37
|
|
|
|
(33
|
)
|
|
|
(25
|
)
|
|
|
24
|
|
|
|
26
|
|
|
|
42
|
|
|
|
5
|
|
|
|
(69
|
)
|
|
|
(69
|
)
|
|
|
8
|
|
|
|
(60
|
)
|
|
|
(55
|
)
|
Other
|
|
|
4
|
|
|
|
(60
|
)
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
(60
|
)
|
|
|
(60
|
)
|
|
|
2
|
|
|
|
(60
|
)
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
|
|
9
|
|
|
|
(31
|
)
|
|
|
(23
|
)
|
|
|
(1
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|
|
(40
|
)
|
|
|
(33
|
)
|
Fluarix, FluLaval
|
|
|
9
|
|
|
|
(31
|
)
|
|
|
(23
|
)
|
|
|
(1
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|
|
(40
|
)
|
|
|
(33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
Shingrix
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Vaccines
|
|
|
939
|
|
|
|
(1
|
)
|
|
|
3
|
|
|
|
333
|
|
|
|
4
|
|
|
|
15
|
|
|
|
289
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
317
|
|
|
|
(8
|
)
|
|
|
(5
|
)
|
Infanrix, Pediarix
|
|
|
206
|
|
|
|
(12
|
)
|
|
|
(6
|
)
|
|
|
106
|
|
|
|
(15
|
)
|
|
|
(6
|
)
|
|
|
73
|
|
|
|
(12
|
)
|
|
|
(14
|
)
|
|
|
27
|
|
|
|
4
|
|
|
|
19
|
|
Boostrix
|
|
|
100
|
|
|
|
(10
|
)
|
|
|
(5
|
)
|
|
|
46
|
|
|
|
(15
|
)
|
|
|
(4
|
)
|
|
|
37
|
|
|
|
(5
|
)
|
|
|
(8
|
)
|
|
|
17
|
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hepatitis
|
|
|
195
|
|
|
|
17
|
|
|
|
24
|
|
|
|
112
|
|
|
|
32
|
|
|
|
47
|
|
|
|
59
|
|
|
|
16
|
|
|
|
12
|
|
|
|
24
|
|
|
|
(23
|
)
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotarix
|
|
|
130
|
|
|
|
(11
|
)
|
|
|
(6
|
)
|
|
|
47
|
|
|
|
(13
|
)
|
|
|
(4
|
)
|
|
|
29
|
|
|
|
32
|
|
|
|
27
|
|
|
|
54
|
|
|
|
(23
|
)
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Synflorix
|
|
|
99
|
|
|
|
(26
|
)
|
|
|
(26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
(7
|
)
|
|
|
(7
|
)
|
|
|
86
|
|
|
|
(28
|
)
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priorix, Priorix Tetra, Varilrix
|
|
|
77
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40
|
|
|
|
7
|
|
|
|
5
|
|
|
|
37
|
|
|
|
(7
|
)
|
|
|
(6
|
)
|
Cervarix
|
|
|
52
|
|
|
|
>100
|
|
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
(29
|
)
|
|
|
(29
|
)
|
|
|
47
|
|
|
|
>100
|
|
|
|
>100
|
|
Other
|
|
|
80
|
|
|
|
27
|
|
|
|
30
|
|
|
|
22
|
|
|
|
>100
|
|
|
|
>100
|
|
|
|
33
|
|
|
|
7
|
|
|
|
7
|
|
|
|
25
|
|
|
|
(14
|
)
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
|
|
1,238
|
|
|
|
7
|
|
|
|
13
|
|
|
|
489
|
|
|
|
35
|
|
|
|
50
|
|
|
|
389
|
|
|
|
|
|
|
|
(3
|
)
|
|
|
360
|
|
|
|
(10
|
)
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
|
|
|
Press release
|
|
|
Balance sheet
|
|
|
|
|
|
|
|
|
|
|
31 March 2018
£m
|
|
|
31 December 2017
£m
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
10,661
|
|
|
|
10,860
|
|
Goodwill
|
|
|
5,601
|
|
|
|
5,734
|
|
Other intangible assets
|
|
|
17,290
|
|
|
|
17,562
|
|
Investments in associates and joint ventures
|
|
|
187
|
|
|
|
183
|
|
Other investments
|
|
|
961
|
|
|
|
918
|
|
Deferred tax assets
|
|
|
3,625
|
|
|
|
3,796
|
|
Derivative financial instruments
|
|
|
8
|
|
|
|
8
|
|
Other
non-current
assets
|
|
|
1,403
|
|
|
|
1,413
|
|
|
|
|
|
|
|
|
|
|
Total
non-current
assets
|
|
|
39,736
|
|
|
|
40,474
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
5,659
|
|
|
|
5,557
|
|
Current tax recoverable
|
|
|
301
|
|
|
|
258
|
|
Trade and other receivables
|
|
|
6,106
|
|
|
|
6,000
|
|
Derivative financial instruments
|
|
|
152
|
|
|
|
68
|
|
Liquid investments
|
|
|
76
|
|
|
|
78
|
|
Cash and cash equivalents
|
|
|
4,004
|
|
|
|
3,833
|
|
Assets held for sale
|
|
|
125
|
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
16,423
|
|
|
|
15,907
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
56,159
|
|
|
|
56,381
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
(3,442
|
)
|
|
|
(2,825
|
)
|
Contingent consideration liabilities
|
|
|
(732
|
)
|
|
|
(1,076
|
)
|
Trade and other payables
|
|
|
(21,088
|
)
|
|
|
(20,970
|
)
|
Derivative financial instruments
|
|
|
(100
|
)
|
|
|
(74
|
)
|
Current tax payable
|
|
|
(1,080
|
)
|
|
|
(995
|
)
|
Short-term provisions
|
|
|
(485
|
)
|
|
|
(629
|
)
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
(26,927
|
)
|
|
|
(26,569
|
)
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Long-term borrowings
|
|
|
(14,015
|
)
|
|
|
(14,264
|
)
|
Corporation tax payable
|
|
|
(396
|
)
|
|
|
(411
|
)
|
Deferred tax liabilities
|
|
|
(1,392
|
)
|
|
|
(1,396
|
)
|
Pensions and other post-employment benefits
|
|
|
(3,364
|
)
|
|
|
(3,539
|
)
|
Other provisions
|
|
|
(670
|
)
|
|
|
(636
|
)
|
Contingent consideration liabilities
|
|
|
(4,878
|
)
|
|
|
(5,096
|
)
|
Other
non-current
liabilities
|
|
|
(927
|
)
|
|
|
(981
|
)
|
|
|
|
|
|
|
|
|
|
Total
non-current
liabilities
|
|
|
(25,642
|
)
|
|
|
(26,323
|
)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
(52,569
|
)
|
|
|
(52,892
|
)
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
3,590
|
|
|
|
3,489
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
1,343
|
|
|
|
1,343
|
|
Share premium account
|
|
|
3,030
|
|
|
|
3,019
|
|
Retained earnings
|
|
|
(6,353
|
)
|
|
|
(6,477
|
)
|
Other reserves
|
|
|
1,911
|
|
|
|
2,047
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity
|
|
|
(69
|
)
|
|
|
(68
|
)
|
Non-controlling
interests
|
|
|
3,659
|
|
|
|
3,557
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
|
3,590
|
|
|
|
3,489
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
Press release
|
|
|
Statement of changes in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
£m
|
|
|
Share
premium
£m
|
|
|
Retained
earnings
£m
|
|
|
Other
reserves
£m
|
|
|
Share-
holders
equity
£m
|
|
|
Non-
controlling
interests
£m
|
|
|
Total
equity
£m
|
|
As previously reported
|
|
|
1,343
|
|
|
|
3,019
|
|
|
|
(6,477
|
)
|
|
|
2,047
|
|
|
|
(68
|
)
|
|
|
3,557
|
|
|
|
3,489
|
|
Implementation of IFRS 15
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
(4
|
)
|
Implementation of IFRS 9
|
|
|
|
|
|
|
|
|
|
|
277
|
|
|
|
(288
|
)
|
|
|
(11
|
)
|
|
|
|
|
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2018, as adjusted
|
|
|
1,343
|
|
|
|
3,019
|
|
|
|
(6,204
|
)
|
|
|
1,759
|
|
|
|
(83
|
)
|
|
|
3,557
|
|
|
|
3,474
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
549
|
|
|
|
|
|
|
|
549
|
|
|
|
210
|
|
|
|
759
|
|
Other comprehensive income for the period
|
|
|
|
|
|
|
|
|
|
|
198
|
|
|
|
95
|
|
|
|
293
|
|
|
|
(28
|
)
|
|
|
265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
|
|
|
|
|
|
|
|
|
747
|
|
|
|
95
|
|
|
|
842
|
|
|
|
182
|
|
|
|
1,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(80
|
)
|
|
|
(80
|
)
|
Dividends to shareholders
|
|
|
|
|
|
|
|
|
|
|
(929
|
)
|
|
|
|
|
|
|
(929
|
)
|
|
|
|
|
|
|
(929
|
)
|
Shares issued
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
11
|
|
Realised profits on disposal of equity investments
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down on shares held by ESOP Trusts
|
|
|
|
|
|
|
|
|
|
|
(71
|
)
|
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based incentive plans
|
|
|
|
|
|
|
|
|
|
|
90
|
|
|
|
|
|
|
|
90
|
|
|
|
|
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2018
|
|
|
1,343
|
|
|
|
3,030
|
|
|
|
(6,353
|
)
|
|
|
1,911
|
|
|
|
(69
|
)
|
|
|
3,659
|
|
|
|
3,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2017
|
|
|
1,342
|
|
|
|
2,954
|
|
|
|
(5,392
|
)
|
|
|
2,220
|
|
|
|
1,124
|
|
|
|
3,839
|
|
|
|
4,963
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
1,046
|
|
|
|
|
|
|
|
1,046
|
|
|
|
177
|
|
|
|
1,223
|
|
Other comprehensive income for the period
|
|
|
|
|
|
|
|
|
|
|
375
|
|
|
|
43
|
|
|
|
418
|
|
|
|
27
|
|
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
|
|
|
|
|
|
|
|
|
1,421
|
|
|
|
43
|
|
|
|
1,464
|
|
|
|
204
|
|
|
|
1,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(161
|
)
|
|
|
(161
|
)
|
Dividends to shareholders
|
|
|
|
|
|
|
|
|
|
|
(925
|
)
|
|
|
|
|
|
|
(925
|
)
|
|
|
|
|
|
|
(925
|
)
|
Changes in
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(5
|
)
|
Shares issued
|
|
|
1
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
32
|
|
Shares acquired by ESOP Trusts
|
|
|
|
|
|
|
10
|
|
|
|
70
|
|
|
|
(141
|
)
|
|
|
(61
|
)
|
|
|
|
|
|
|
(61
|
)
|
Write-down on shares held by ESOP Trusts
|
|
|
|
|
|
|
|
|
|
|
(160
|
)
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based incentive plans
|
|
|
|
|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2017
|
|
|
1,343
|
|
|
|
2,995
|
|
|
|
(4,906
|
)
|
|
|
2,282
|
|
|
|
1,714
|
|
|
|
3,879
|
|
|
|
5,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
|
|
|
Press release
|
|
|
Cash flow statement three months ended
31 March 2018
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Profit after tax
|
|
|
759
|
|
|
|
1,223
|
|
Tax on profits
|
|
|
348
|
|
|
|
327
|
|
Share of after tax profits of associates and joint ventures
|
|
|
(9
|
)
|
|
|
(5
|
)
|
Net finance expense
|
|
|
142
|
|
|
|
173
|
|
Depreciation, amortisation and other adjusting items
|
|
|
478
|
|
|
|
326
|
|
Increase in working capital
|
|
|
(523
|
)
|
|
|
(604
|
)
|
Contingent consideration paid
|
|
|
(445
|
)
|
|
|
(138
|
)
|
Increase in other net liabilities (excluding contingent consideration paid)
|
|
|
311
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
|
1,061
|
|
|
|
1,350
|
|
Taxation paid
|
|
|
(198
|
)
|
|
|
(206
|
)
|
|
|
|
|
|
|
|
|
|
Net cash inflow from operating activities
|
|
|
863
|
|
|
|
1,144
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(258
|
)
|
|
|
(260
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
9
|
|
|
|
13
|
|
Purchase of intangible assets
|
|
|
(97
|
)
|
|
|
(156
|
)
|
Proceeds from sale of intangible assets
|
|
|
5
|
|
|
|
|
|
Purchase of equity investments
|
|
|
(25
|
)
|
|
|
(21
|
)
|
Proceeds from sale of equity investments
|
|
|
22
|
|
|
|
6
|
|
Contingent consideration paid
|
|
|
(72
|
)
|
|
|
(22
|
)
|
Disposal of businesses
|
|
|
(9
|
)
|
|
|
223
|
|
Investment in associates and joint ventures
|
|
|
(1
|
)
|
|
|
(6
|
)
|
Interest received
|
|
|
16
|
|
|
|
24
|
|
Dividends from associates and joint ventures
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from investing activities
|
|
|
(371
|
)
|
|
|
(199
|
)
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
|
Issue of share capital
|
|
|
11
|
|
|
|
32
|
|
Shares acquired by ESOP Trusts
|
|
|
|
|
|
|
(61
|
)
|
Increase in/(repayment of) short-term loans
|
|
|
701
|
|
|
|
(528
|
)
|
Net repayment of obligations under finance leases
|
|
|
(7
|
)
|
|
|
(3
|
)
|
Interest paid
|
|
|
(96
|
)
|
|
|
(93
|
)
|
Dividends paid to shareholders
|
|
|
(929
|
)
|
|
|
(925
|
)
|
Distributions to
non-controlling
interests
|
|
|
(80
|
)
|
|
|
|
|
Other financing items
|
|
|
117
|
|
|
|
69
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from financing activities
|
|
|
(283
|
)
|
|
|
(1,509
|
)
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in cash and bank overdrafts in the period
|
|
|
209
|
|
|
|
(564
|
)
|
|
|
|
|
|
|
|
|
|
Cash and bank overdrafts at beginning of the period
|
|
|
3,600
|
|
|
|
4,605
|
|
Exchange adjustments
|
|
|
(52
|
)
|
|
|
11
|
|
Increase/(decrease) in cash and bank overdrafts
|
|
|
209
|
|
|
|
(564
|
)
|
|
|
|
|
|
|
|
|
|
Cash and bank overdrafts at end of the period
|
|
|
3,757
|
|
|
|
4,052
|
|
|
|
|
|
|
|
|
|
|
Cash and bank overdrafts at end of the period comprise:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
4,004
|
|
|
|
4,509
|
|
Overdrafts
|
|
|
(247
|
)
|
|
|
(457
|
)
|
|
|
|
|
|
|
|
|
|
|
|
3,757
|
|
|
4,052
|
|
|
|
|
|
|
|
|
|
|
28
|
|
|
Press release
|
|
|
Segment information
Operating segments are reported based on the financial information provided to the Chief Executive Officer and the responsibilities of the Corporate Executive
Team (CET). GSK reports results under four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines and Consumer Healthcare, and individual members of the CET are responsible for each segment.
The Pharmaceuticals R&D segment is the responsibility of the President, Pharmaceuticals R&D and is reported as a separate segment.
The Groups management reporting process allocates intra-Group profit on a product sale to the market in which that sale is recorded, and the profit
analyses below have been presented on that basis.
Turnover by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Pharmaceuticals
|
|
|
4,009
|
|
|
|
4,189
|
|
|
|
(4
|
)
|
|
|
2
|
|
Vaccines
|
|
|
1,238
|
|
|
|
1,152
|
|
|
|
7
|
|
|
|
13
|
|
Consumer Healthcare
|
|
|
1,975
|
|
|
|
2,043
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total turnover
|
|
|
7,222
|
|
|
|
7,384
|
|
|
|
(2
|
)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
|
Growth
£%
|
|
|
Growth
CER%
|
|
Pharmaceuticals
|
|
|
1,941
|
|
|
|
2,118
|
|
|
|
(8
|
)
|
|
|
(1
|
)
|
Pharmaceuticals R&D
|
|
|
(612
|
)
|
|
|
(678
|
)
|
|
|
(10
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals including R&D
|
|
|
1,329
|
|
|
|
1,440
|
|
|
|
(8
|
)
|
|
|
|
|
Vaccines
|
|
|
339
|
|
|
|
341
|
|
|
|
|
|
|
|
18
|
|
Consumer Healthcare
|
|
|
384
|
|
|
|
351
|
|
|
|
9
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
2,052
|
|
|
|
2,132
|
|
|
|
(4
|
)
|
|
|
6
|
|
Corporate and other unallocated costs
|
|
|
(129
|
)
|
|
|
(153
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit
|
|
|
1,923
|
|
|
|
1,979
|
|
|
|
(3
|
)
|
|
|
9
|
|
Adjusting items
|
|
|
(683
|
)
|
|
|
(261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
|
|
|
1,240
|
|
|
|
1,718
|
|
|
|
(28
|
)
|
|
|
(15
|
)
|
Finance income
|
|
|
20
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
|
(162
|
)
|
|
|
(194
|
)
|
|
|
|
|
|
|
|
|
Share of after tax profits of associates and joint ventures
|
|
|
9
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
|
|
1,107
|
|
|
|
1,550
|
|
|
|
(29
|
)
|
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
Press release
|
|
|
Legal matters
The Group is involved in significant legal and administrative proceedings, principally product liability, intellectual property, tax, anti-trust and
governmental investigations as well as related private litigation, which are more fully described in the Legal Proceedings note in the Annual Report 2017.
At 31 March 2018, the Groups aggregate provision for legal and other disputes (not including tax matters described under Taxation
below) was £0.2 billion (31 December 2017: £0.2 billion). The Group may become involved in significant legal proceedings in respect of which it is not possible to make a reliable estimate of the expected financial effect, if
any, that could result from ultimate resolution of the proceedings. In these cases, the Group would provide appropriate disclosures about such cases, but no provision would be made.
The ultimate liability for legal claims may vary from the amounts provided and is dependent upon the outcome of litigation proceedings, investigations and
possible settlement negotiations. The Groups position could change over time, and, therefore, there can be no assurance that any losses that result from the outcome of any legal proceedings will not exceed by a material amount the amount of
the provisions reported in the Groups financial accounts.
There have been no significant legal developments since the date of the Annual Report
2017.
Developments with respect to tax matters are described in Taxation below.
Taxation
Issues related to taxation are described in the Taxation note in the Annual Report 2017. The Group continues to believe it has made adequate
provision for the liabilities likely to arise from periods which are open and not yet agreed by tax authorities. The ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of agreements with relevant
tax authorities. There have been no material changes to historical tax matters since the date of the Annual Report 2017.
In the quarter, tax on Total
profits amounted to £348 million and represented an effective tax rate of 31.4% (Q1 2017: 21.1%). The rate of 31.4% has been influenced by the
non-taxable
transaction related charges arising
on the Groups put option liabilities. The tax on Adjusted profits amounted to £362 million and represented an effective Adjusted tax rate of 20.2% (Q1 2017: 22.0%).
The Groups balance sheet at 31 March 2018 included a current tax payable liability of £1,080 million, a
non-current
tax payable liability of £396 million and a tax recoverable asset of £301 million.
30
|
|
|
Press release
|
|
|
Additional information
Accounting policies and basis of preparation
This
unaudited Results Announcement contains condensed financial information for the three months ended 31 March 2018 and should be read in conjunction with the Annual Report 2017, which was prepared in accordance with International Financial
Reporting Standards as adopted by the European Union. This Results Announcement has been prepared applying consistent accounting policies to those applied by the Group in the Annual Report 2017, except for the implementation of IFRS 15 Revenue
from contracts with customers and IFRS 9 Financial instruments from 1 January 2018. These new Standards have not had a material impact on the reported results.
GSK has adopted IFRS 15 applying the modified retrospective approach, with a cumulative adjustment to decrease equity at 1 January 2018 by
£4 million. In accordance with the requirements of the Standard, where the modified retrospective approach is adopted, prior year results are not restated. GSK has adopted IFRS 9 retrospectively, but with certain permitted exceptions. As
a result, prior year results are also not restated, but a cumulative adjustment to decrease equity at 1 January 2018 by £11 million has been made.
IFRS 16 Leases is required to be implemented by the Group from 1 January 2019. The new standard will replace IAS 17 Leases and
will require lease liabilities and right of use assets to be recognised on the balance sheet for almost all leases. This is expected to result in a significant increase in both assets and liabilities recognised on the balance sheet. The
costs of operating leases currently included within operating costs will be split and the financing element of the charge will be reported within finance expense. The Group is assessing the potential impact of the new standard.
This Results Announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006. The
full Group accounts for 2017 were published in the Annual Report 2017, which has been delivered to the Registrar of Companies and on which the report of the independent auditors was unqualified and did not contain a statement under section 498 of
the Companies Act 2006.
Exchange rates
GSK operates
in many countries, and earns revenues and incurs costs in many currencies. The results of the Group, as reported in Sterling, are affected by movements in exchange rates between Sterling and other currencies. Average exchange rates, as modified by
specific transaction rates for large transactions, prevailing during the period, are used to translate the results and cash flows of overseas subsidiaries, associates and joint ventures into Sterling.
Period-end
rates are used to translate the net assets of those entities. The currencies which most influenced these translations and the relevant exchange rates were:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
Q1 2017
|
|
|
2017
|
|
Average rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/£
|
|
|
1.39
|
|
|
|
1.25
|
|
|
|
1.30
|
|
Euro/£
|
|
|
1.13
|
|
|
|
1.17
|
|
|
|
1.15
|
|
Yen/£
|
|
|
151
|
|
|
|
141
|
|
|
|
145
|
|
|
|
|
|
Period-end
rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/£
|
|
|
1.40
|
|
|
|
1.25
|
|
|
|
1.35
|
|
Euro/£
|
|
|
1.14
|
|
|
|
1.17
|
|
|
|
1.13
|
|
Yen/£
|
|
|
149
|
|
|
|
139
|
|
|
|
152
|
|
During Q1 2018, average Sterling exchange rates were weaker against the Euro but stronger against the US Dollar and the
Yen, compared with the same period in 2017.
Period-end
Sterling exchange rates were stronger against the US Dollar and the Euro, but weaker against the Yen, compared with the 2017 year end rates.
31
|
|
|
Press release
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
millions
|
|
|
Q1 2017
millions
|
|
Weighted average number of shares basic
|
|
|
4,903
|
|
|
|
4,877
|
|
Dilutive effect of share options and share awards
|
|
|
42
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares diluted
|
|
|
4,945
|
|
|
|
4,918
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2018, 4,913 million shares were in free issue (excluding Treasury shares and shares held by the ESOP
Trusts). This compares with 4,886 million shares at 31 March 2017.
Net assets
The book value of net assets increased by £101 million from £3,489 million at 31 December 2017 to £3,590 million at
31 March 2018. This primarily reflected the Total profit for the period and
re-measurement
gains on defined benefit plans exceeding the dividend paid in the period.
The carrying value of investments in associates and joint ventures at 31 March 2018 was £187 million (31 December 2017:
£183 million), with a market value of £377 million (31 December 2017: £372 million).
At 31 March 2018, the net
deficit on the Groups pension plans was £1,350 million compared with £1,505 million at 31 December 2017. The decrease in the net deficit primarily arose from increases in the rates used to discount UK pension
liabilities from 2.5% to 2.6%, and US pension liabilities from 3.6% to 3.9% together with a decrease in the UK inflation rate from 3.2% to 3.1%, partly offset by lower asset values.
At 31 March 2018, the post-retirement benefits provision was £1,405 million compared with £1,496 million at 31 December 2017.
The decrease in the provision was primarily due to a weaker US Dollar at the period end.
At 31 March 2018, the Consumer Healthcare Joint
Venture put option was recognised in Other payables in Current liabilities at a value of £9,179 million and represented the present value of the agreed valuation of $13 billion following the announcement on 27 March 2018 of the
agreement to buyout Novartis interest in the Consumer Healthcare Joint Venture (31 December 2017: £8,606 million). This is expected to be settled on 1 June 2018, at which point the liability will be extinguished. The estimated
present value of the potential redemption amount of the Pfizer put option related to ViiV Healthcare, also recorded in Other payables in Current liabilities, was £1,243 million (31 December 2017: £1,304 million).
Contingent consideration amounted to £5,610 million at 31 March 2018 (31 December 2017: £6,172 million), of which
£5,314 million (31 December 2017: £5,542 million) represented the estimated present value of amounts payable to Shionogi relating to ViiV Healthcare and £251 million (31 December 2017: £584 million)
represented the estimated present value of contingent consideration payable to Novartis related to the Vaccines acquisition. A milestone payment of $450 million was made to Novartis in January 2018. The liability due to Shionogi included
£215 million in respect of preferential dividends. The liability for preferential dividends due to Pfizer at 31 March 2018 was £17 million (31 December 2017: £17 million). An explanation of the accounting for
the
non-controlling
interests in ViiV Healthcare is set out on page 35.
Of the contingent consideration payable
(on a
post-tax
basis) at 31 March 2018, £732 million (31 December 2017: £1,076 million) is expected to be paid within one year. The consideration payable for the acquisition of the
Shionogi-ViiV Healthcare joint venture and the Novartis Vaccines business is expected to be paid over a number of years. As a result, the total estimated liabilities are discounted to their present values, on a
post-tax
basis using
post-tax
discount rates. The Shionogi-ViiV Healthcare contingent consideration liability is discounted at 8.5% and the Novartis Vaccines contingent
consideration liability is discounted partly at 8% and partly at 9%.
32
|
|
|
Press release
|
|
|
The liabilities for the put options and the contingent consideration at 31 March 2018 have been
calculated based on the closing exchange rates, primarily US$1.40/£1 and Euro 1.14/£1. The sensitivities to these exchange rates for Consumer Healthcare and ViiV Healthcare put options and the Shionogi-ViiV Healthcare and Novartis
Vaccines contingent consideration liabilities are set out below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
Healthcare
Joint Venture
put option
|
|
|
ViiV Healthcare
put option
|
|
|
Shionogi-
ViiV Healthcare
contingent
consideration
|
|
|
Novartis
Vaccines
contingent
consideration
|
|
|
|
£m
|
|
|
£m
|
|
|
£m
|
|
|
£m
|
|
Increase/(decrease) in liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 cent appreciation of US Dollar
|
|
|
340
|
|
|
|
32
|
|
|
|
150
|
|
|
|
(5
|
)
|
5 cent depreciation of US Dollar
|
|
|
(317
|
)
|
|
|
(30
|
)
|
|
|
(141
|
)
|
|
|
4
|
|
10 cent appreciation of US Dollar
|
|
|
706
|
|
|
|
67
|
|
|
|
312
|
|
|
|
(9
|
)
|
10 cent depreciation of US Dollar
|
|
|
(612
|
)
|
|
|
(58
|
)
|
|
|
(272
|
)
|
|
|
8
|
|
5 cent appreciation of Euro
|
|
|
|
|
|
|
19
|
|
|
|
47
|
|
|
|
12
|
|
5 cent depreciation of Euro
|
|
|
|
|
|
|
(18
|
)
|
|
|
(42
|
)
|
|
|
(11
|
)
|
10 cent appreciation of Euro
|
|
|
|
|
|
|
41
|
|
|
|
96
|
|
|
|
25
|
|
10 cent depreciation of Euro
|
|
|
|
|
|
|
(34
|
)
|
|
|
(79
|
)
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movements in contingent consideration are as follows:
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Contingent consideration at beginning of the period
|
|
|
6,172
|
|
|
|
5,896
|
|
Re-measurement
through income statement
|
|
|
(45
|
)
|
|
|
58
|
|
Cash payments: operating cash flows
|
|
|
(445
|
)
|
|
|
(138
|
)
|
Cash payments: investing activities
|
|
|
(72
|
)
|
|
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
Contingent consideration at end of the period
|
|
|
5,610
|
|
|
|
5,794
|
|
|
|
|
|
|
|
|
|
|
The
re-measurements
of contingent consideration in the quarter reflected updated
forecasts, exchange rate movements and the unwind of the discounts on the liabilities. The cash settlement in the period included £197 million (Q1 2017: £159 million) of payments to Shionogi in relation to ViiV Healthcare and the
£317 million milestone payment to Novartis relating to the
non-US
sales of
Bexsero
. These payments are deductible for tax purposes.
At 31 March 2018, the ESOP Trusts held 46.4 million GSK shares against the future exercise of share options and share awards. The carrying value of
£312 million has been deducted from other reserves. The market value of these shares was £646 million.
At 31 March 2018, the
company held 414.6 million Treasury shares at a cost of £5,800 million, which has been deducted from retained earnings.
Contingent
liabilities
There were contingent liabilities at 31 March 2018 in respect of guarantees and indemnities entered into as part of the ordinary
course of the Groups business. No material losses are expected to arise from such contingent liabilities. Provision is made for the outcome of legal and tax disputes where it is both probable that the Group will suffer an outflow of funds and
it is possible to make a reliable estimate of that outflow. Descriptions of the significant legal and tax disputes to which the Group is a party are set out on page 30.
33
|
|
|
Press release
|
|
|
Reconciliation of cash flow to movements in net debt
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Net debt at beginning of the period
|
|
|
(13,178
|
)
|
|
|
(13,804
|
)
|
Increase/(decrease) in cash and bank overdrafts
|
|
|
209
|
|
|
|
(564
|
)
|
Net (increase in)/repayment of short-term loans
|
|
|
(701
|
)
|
|
|
528
|
|
Net repayment of obligations under finance leases
|
|
|
7
|
|
|
|
3
|
|
Exchange adjustments
|
|
|
267
|
|
|
|
97
|
|
Other
non-cash
movements
|
|
|
19
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in net debt
|
|
|
(199
|
)
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
Net debt at end of the period
|
|
|
(13,377
|
)
|
|
|
(13,743
|
)
|
|
|
|
|
|
|
|
|
|
Net debt analysis
|
|
|
|
|
|
|
|
|
|
|
31 March
2018
£m
|
|
|
31 December
2017
£m
|
|
Liquid investments
|
|
|
76
|
|
|
|
78
|
|
Cash and cash equivalents
|
|
|
4,004
|
|
|
|
3,833
|
|
Short-term borrowings
|
|
|
(3,442
|
)
|
|
|
(2,825
|
)
|
Long-term borrowings
|
|
|
(14,015
|
)
|
|
|
(14,264
|
)
|
|
|
|
|
|
|
|
|
|
Net debt at end of the period
|
|
|
(13,377
|
)
|
|
|
(13,178
|
)
|
|
|
|
|
|
|
|
|
|
Free cash flow reconciliation
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Net cash inflow from operating activities
|
|
|
863
|
|
|
|
1,144
|
|
Purchase of property, plant and equipment
|
|
|
(258
|
)
|
|
|
(260
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
9
|
|
|
|
13
|
|
Purchase of intangible assets
|
|
|
(97
|
)
|
|
|
(156
|
)
|
Net finance costs
|
|
|
(80
|
)
|
|
|
(69
|
)
|
Dividends from joint ventures and associates
|
|
|
39
|
|
|
|
|
|
Contingent consideration paid (reported in investing activities)
|
|
|
(72
|
)
|
|
|
(22
|
)
|
Distributions to
non-controlling
interests
|
|
|
(80
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
324
|
|
|
|
650
|
|
|
|
|
|
|
|
|
|
|
34
|
|
|
Press release
|
|
|
Non-controlling
interests in ViiV Healthcare
Trading profit allocations
Because ViiV Healthcare is a subsidiary of the Group, 100% of its operating results (turnover, operating profit, profit after tax) are included within the
Group income statement and then a portion of the earnings is allocated to the
non-controlling
interests owned by the other shareholders, in line with their respective equity shareholdings (Pfizer 11.7% and
Shionogi 10%). Each of the shareholders, including GSK, is also entitled to preferential dividends determined by the performance of certain products that each shareholder contributed. As the relative performance of these products changes over time,
the proportion of the overall earnings of ViiV Healthcare allocated to each shareholder will change. In particular, the increasing sales of
Tivicay
and
Triumeq
have a favourable impact on the proportion of the preferential dividends
that is allocated to GSK. GSK was entitled to approximately 80% of the Adjusted earnings of ViiV Healthcare for 2017.
Re-measurements
of the liabilities for the preferential dividends allocated to Pfizer and
Shionogi are included within other operating income.
Acquisition-related arrangements
As part of the agreement reached to acquire Shionogis interest in the former Shionogi-ViiV Healthcare joint venture in 2012, ViiV Healthcare agreed to
pay additional consideration to Shionogi contingent on the performance of the products being developed by that joint venture, principally dolutegravir. The liability for this contingent consideration was estimated and recognised in the balance sheet
at the date of acquisition. Subsequent
re-measurements
are reflected within other operating income/expense and within Adjusting items in the income statement.
Cash payments are made to Shionogi by ViiV Healthcare each quarter which reduce the balance sheet liability and are hence not recorded in the income
statement. The payments are calculated based on the sales performance of the relevant products in the previous quarter and are reflected in the cash flow statement partly in operating cash flows and partly within investing activities. The tax relief
on these payments is reflected in the Groups Adjusting items as part of the tax charge. The part of each payment relating to the original estimate of the fair value of the contingent consideration on the acquisition of the Shionogi-ViiV
Healthcare joint venture in 2012 of £659 million is reported within investing activities in the cash flow statement and the part of each payment relating to the increase in the liability since the acquisition is reported within operating
cash flows.
Movements in contingent consideration payable to Shionogi are as follows:
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
Q1 2017
£m
|
|
Contingent consideration at beginning of the period
|
|
|
5,542
|
|
|
|
5,304
|
|
Re-measurement
through income statement
|
|
|
(31
|
)
|
|
|
48
|
|
Cash payments: operating cash flows
|
|
|
(174
|
)
|
|
|
(137
|
)
|
Cash payments: investing activities
|
|
|
(23
|
)
|
|
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
Contingent consideration at end of the period
|
|
|
5,314
|
|
|
|
5,193
|
|
|
|
|
|
|
|
|
|
|
Of the contingent consideration payable (on a
post-tax
basis) to Shionogi at
31 March 2018, £703 million (31 March 2017: £579 million) is expected to be paid within one year.
35
|
|
|
Press release
|
|
|
Exit rights
Pfizer may request an IPO of ViiV Healthcare at any time and if either GSK does not consent to such IPO or an offering is not completed within nine months,
Pfizer could require GSK to acquire its shareholding. Under the original agreements, GSK had the unconditional right, so long as it made no subsequent distribution to its shareholders, to withhold its consent to the exercise of the Pfizer put
options and, as a result, in accordance with IFRS, GSK did not recognise a liability for the put option on its balance sheet. However, during Q1 2016, GSK notified Pfizer that it had irrevocably given up this right and accordingly recognised the
liability for the put option on the Groups balance sheet during Q1 2016 at an initial value of £1,070 million. Consistent with this revised treatment, at the end of Q1 2016 GSK also recognised liabilities for the future preferential
dividends anticipated to become payable to Pfizer and Shionogi on the Groups balance sheet.
The closing balances of the liabilities related to
Pfizers shareholding are as follows:
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
£m
|
|
|
31 December
2017
£m
|
|
Pfizer put option
|
|
|
1,243
|
|
|
|
1,304
|
|
Pfizer preferential dividend
|
|
|
17
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
Under the original agreements, Shionogi could also have requested GSK to acquire its shareholding in ViiV Healthcare in six
month windows commencing in 2017, 2020 and 2022. GSK had the unconditional right, so long as it made no subsequent distribution to its shareholders, to withhold its consent to the exercise of the Shionogi put option and, as a result, GSK did not
recognise a liability for the put option on its balance sheet. However, during Q1 2016, GSK notified Shionogi that it had irrevocably given up this right and accordingly recognised the liability for the put option on the Groups balance sheet
during Q1 2016 at an initial value of £926 million. In Q4 2016, Shionogi irrevocably agreed to waive its put option and as a result GSK
de-recognised
the liability for this put option on the
Groups balance sheet directly to equity. The value of the liability was £1,244 million when it was
de-recognised.
GSK also has a call option over Shionogis shareholding in ViiV Healthcare, which under the original agreements was exercisable in six month windows
commencing in 2027, 2030 and 2032. GSK has now irrevocably agreed to waive the first two exercise windows, but the last six month window in 2032 remains. As this call option is at fair value, it has no value for accounting purposes.
36
|
|
|
Press release
|
|
|
Adjusted results reconciliations
The reconciliations between Total results and Adjusted results for Q1 2018 and Q1 2017 are set out below.
Income statement Adjusted results reconciliation
Three months ended 31 March 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
|
Intangible
amort-
isation
£m
|
|
|
Intangible
impair-
ment
£m
|
|
|
Major
restruct-
uring
£m
|
|
|
Transaction-
related
£m
|
|
|
Divestments,
significant
legal and
other items
£m
|
|
|
Adjusted
results
£m
|
|
Gross profit
|
|
|
4,831
|
|
|
|
139
|
|
|
|
27
|
|
|
|
43
|
|
|
|
3
|
|
|
|
|
|
|
|
5,043
|
|
Operating profit
|
|
|
1,240
|
|
|
|
149
|
|
|
|
27
|
|
|
|
65
|
|
|
|
437
|
|
|
|
5
|
|
|
|
1,923
|
|
Profit before taxation
|
|
|
1,107
|
|
|
|
149
|
|
|
|
27
|
|
|
|
66
|
|
|
|
437
|
|
|
|
7
|
|
|
|
1,793
|
|
Profit after taxation
|
|
|
759
|
|
|
|
117
|
|
|
|
23
|
|
|
|
49
|
|
|
|
457
|
|
|
|
26
|
|
|
|
1,431
|
|
Earnings per share
|
|
|
11.2
|
p
|
|
|
2.4
|
p
|
|
|
0.5
|
p
|
|
|
1.0
|
p
|
|
|
9.0
|
p
|
|
|
0.5
|
p
|
|
|
24.6
|
p
|
Weighted average number of shares (millions)
|
|
|
4,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
(2,391
|
)
|
|
|
139
|
|
|
|
27
|
|
|
|
43
|
|
|
|
3
|
|
|
|
|
|
|
|
(2,179
|
)
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administration
|
|
|
(2,311
|
)
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
6
|
|
|
|
(2,286
|
)
|
Research and development
|
|
|
(904
|
)
|
|
|
10
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
4
|
|
|
|
(887
|
)
|
Other operating income
|
|
|
(429
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
434
|
|
|
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance costs
|
|
|
(142
|
)
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
2
|
|
|
|
(139
|
)
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted profit after tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
|
|
(348
|
)
|
|
|
(32
|
)
|
|
|
(4
|
)
|
|
|
(17
|
)
|
|
|
20
|
|
|
|
19
|
|
|
|
(362
|
)
|
Adjusted results exclude the above items from Total results as GSK believes that Adjusted results are more representative of
the performance of the Groups operations and allow the key trends and factors driving performance to be more easily and clearly identified by shareholders. For a fuller explanation of Adjusted results, see Definitions on page 19.
37
|
|
|
Press release
|
|
|
Income statement Adjusted results reconciliation
Three months ended 31 March 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
|
Intangible
amort-
isation
£m
|
|
|
Intangible
impair-
ment
£m
|
|
|
Major
restruct-
uring
£m
|
|
|
Transaction-
related
£m
|
|
|
Divestments,
significant
legal and
other items
£m
|
|
|
Adjusted
results
£m
|
|
Gross profit
|
|
|
4,871
|
|
|
|
131
|
|
|
|
35
|
|
|
|
104
|
|
|
|
22
|
|
|
|
|
|
|
|
5,163
|
|
Operating profit
|
|
|
1,718
|
|
|
|
142
|
|
|
|
44
|
|
|
|
166
|
|
|
|
92
|
|
|
|
(183
|
)
|
|
|
1,979
|
|
Profit before taxation
|
|
|
1,550
|
|
|
|
142
|
|
|
|
44
|
|
|
|
167
|
|
|
|
92
|
|
|
|
(180
|
)
|
|
|
1,815
|
|
Profit after taxation
|
|
|
1,223
|
|
|
|
111
|
|
|
|
31
|
|
|
|
129
|
|
|
|
65
|
|
|
|
(143
|
)
|
|
|
1,416
|
|
Earnings per share
|
|
|
21.4p
|
|
|
|
2.3p
|
|
|
|
0.7p
|
|
|
|
2.7p
|
|
|
|
0.9p
|
|
|
|
(3.0
|
)p
|
|
|
25.0p
|
|
Weighted average number of shares (millions)
|
|
|
4,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
(2,513
|
)
|
|
|
131
|
|
|
|
35
|
|
|
|
104
|
|
|
|
22
|
|
|
|
|
|
|
|
(2,221
|
)
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administration
|
|
|
(2,452
|
)
|
|
|
|
|
|
|
|
|
|
|
47
|
|
|
|
|
|
|
|
58
|
|
|
|
(2,347
|
)
|
Research and development
|
|
|
(960
|
)
|
|
|
11
|
|
|
|
9
|
|
|
|
15
|
|
|
|
|
|
|
|
6
|
|
|
|
(919
|
)
|
Other operating income
|
|
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70
|
|
|
|
(247
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance costs
|
|
|
(173
|
)
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
3
|
|
|
|
(169
|
)
|
|
|
|
|
|
|
|
|
The following adjustments are made in arriving at Adjusted profit after tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
|
|
(327
|
)
|
|
|
(31
|
)
|
|
|
(13
|
)
|
|
|
(38
|
)
|
|
|
(27
|
)
|
|
|
37
|
|
|
|
(399
|
)
|
Adjusted results exclude the above items from Total results as GSK believes that Adjusted results are more representative of
the performance of the Groups operations and allow the key trends and factors driving performance to be more easily and clearly identified by shareholders. For a fuller explanation of Adjusted results, see Definitions on page 19.
38
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the
undersigned, thereunto duly authorised.
Date: May 10, 2018
|
|
|
GlaxoSmithKline plc
GlaxoSmithKline Capital plc and
GlaxoSmithKline Capital
Inc.
(Registrants)
|
|
|
By:
|
|
/s/ VICTORIA WHYTE
|
|
|
Victoria Whyte
|
|
|
Authorised Signatory for and on behalf of
GlaxoSmithKline plc
GlaxoSmithKline Capital plc and
GlaxoSmithKline Capital Inc.
|
GSK (NYSE:GSK)
Historical Stock Chart
From Sep 2024 to Oct 2024
GSK (NYSE:GSK)
Historical Stock Chart
From Oct 2023 to Oct 2024