GlaxoSmithKline 3Q Net Profit Fell Slightly But Beat Expectations; Raises 2021 Adjusted EPS View -- Update
By Cecilia Butini
GlaxoSmithKline PLC on Wednesday posted a slightly lower net
profit for the third quarter despite higher sales and it raised its
outlook for 2021 adjusted earnings per share.
The British pharma major said net profit for the period was 1.17
billion pounds ($1.61 billion), slightly down from $1.24 billion
the year prior but beating a consensus provided by FactSet which
saw the metric at GBP844 million.
Adjusted earnings per share, a closely-watched metric which
leaves out some one-off items, came in at 36.6 pence for the
period, also beating a FactSet consensus which saw it at 28.63
pence. Adjusted earnings per share in the same quarter the previous
year were 35.60 pence.
Sales rose to GBP9.08 billion in the quarter from GBP8.65
billion the previous year, GSK said.
The company raised its outlook on adjusted earnings per share
for 2021, saying it now expects the metric to decline between 2%
and 4% at constant exchange rates excluding Covid-19 solutions. It
had previously foreseen a mid-to-high single-digit decline.
Looking ahead, it reconfirmed the expectation for meaningful
improvement in revenue and margin in 2022.
GSK also declared a dividend of 19 pence for the third quarter,
continuing to expect 80 pence a share for 2021.
The company said sales in its vaccine business, especially for
its shingles vaccine Shingrix, were affected by a surge in the
delta coronavirus variant, which delayed the expected recovery of
the shot's prescriptions in the second half of the year. Despite
encouraging Shingrix prescription trends in the U.S., GSK said it
revised downward its vaccine revenue guidance for 2021, saying it
now foresees revenue to decline by mid-single digits. It had
previously expected the metric for the division to be broadly
Revenue in the pharmaceutical business is expected to grow by
low-single digits in 2021, from a previous expectation of flat to
low-single digit growth at constant exchange rates.
Consumer healthcare revenue is expected to grow by low to
mid-single digits at constant exchange rates in 2021 with
above-market growth, GSK said.
The company added that it is making progress toward the planned
demerger of the consumer healthcare business in mid-2022.
Write to Cecilia Butini at email@example.com
(END) Dow Jones Newswires
October 27, 2021 08:36 ET (12:36 GMT)
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