GlaxoSmithKline plc., (GSK) has posted net profit of £2,505 million during the fourth quarter ended December 2013 as against £823 million in the corresponding period of last year mainly due to lower tax provision of £41 million as compared to £905 million and higher other operating income. Its turnover improved marginally by 1.5 per cent to £6,906 million from £6,802 million. Its gross profit before selling, general and administration, R&D expenditure, royalty income and other operating income, declined by 8.4 per cent to £4,380 million from £4,784 million. Its other operating income increased significantly to £1,233 million from £412 million in the last period.
For the full year ended December 2013, GSK's turnover remained flat at £26,605 million (US$ 43,701 million) as compared to £26,431 million, a small growth of 0.3 per cent over the previous year. However, its net profit went up by 20.3 per cent to £5,628 million from £4,678 million as its provision for taxation was lower at £1,019 million as against £1,922 million in the previous year. Similarly, Its R&D expenditure declined to £3,923 million from £3,979 million due to the completion of a number of large trials, the phasing of ongoing project spending as well as continuing cost management. Its selling & general cost declined during 2013 to £8,480 million from £8,789 million.
The sales of pharmaceuticals, vaccines and ViiV Healthcare increased only by 0.3 per cent to £21,318 million during the year ended December 2013 from £21,261 million in the previous year mainly due to continued pricing pressures and generic competition in Europe. Its sales of pharmaceuticals reached at £17,898 million and that of vaccines to £3,420 million. The sales of consumer healthcare also increased marginally by 0.3 per cent to £5,187 million from £5,170 million.
The pharmaceutical and vaccines sales in US increased by 2.7 per cent to £7,192 million from £7,000 million and that in Europe moved up by 3.3 per cent to £5,166 million from £5,001 million. Its sales in Japan declined sharply by 15.9 per cent to £1,657 million from £1,969 million due to lower sales of vaccines. Its sales in EMAP adversely affected by the ongoing investigation in China and improved only by one per cent to £4,698 million. Its sales in China declined by 18 per cent as the sales of respiratory and hepatitis products declined sharply.
The sales of Seretide/Advair increased 4 per cent to £5,274 million during 2013. Similarly, sales of major pharmaceutical products like Ventolin, Avodart and Augmentin registered growth. However, the sales of Lamictal and Lovaza declined during 2013. The sales of Infanrix, Pediarix vaccines improved by 9 per cent to £ 862 million and that for hepatitis vaccine declined by 4 per cent to £629 million.
Sir Andrew Witty, CEO, said, “GSK's performance in 2013 represented further strong delivery for the Group. We met our guidance with core EPS growth of four per cent and sales growth of 3 per cent (ex-divestments. And returned £5.2 billion to shareholders via further growth in the dividend and our continuing share buy-back programme. We also delivered the most productive period of R&D output in the company's history and led the sector for new medicine approvals.”
“The company filed 6 major new medicine and received approval for five viz., Breo and Anoro for respiratory disease, Tafinlar and Mekinist for melanoma and Tivicay for HIV during 2013. Our pipeline remains extensive. We have around 40 NMEs in phase II/III clinical development. In 2014 and 2015 we expect phase III read-outs for 6 NMEs and are planning phase III starts for around 10 new products,” Witty added.
For the year 2014, GSK expects core earnings per share growth of 408 per cent on sales growth around two per cent on an ex-divestment basis.