GlaxoSmithKline plc., (GSK) has posted net profit of £317 million during the fourth quarter ended December 2016 as against a net loss of £428 million in the similar period of last year due to strong growth in sales. Its gross profit went up by 36 per cent to £5,078 million from £3,745 million. EPS improved to 5.3 pence from negative 7.3 pence.

The Novartis transaction completed on March 2, 2015 and so the Group's reported, results include twelve months of sales of the vaccines and consumer healthcare products acquired from Novartis and exclude the former GSK oncology business.

Sir Andrew Witty, chief executive officer, said, “2016 has seen GSK perform strongly with good sales growth across all three business, excellent new product momentum, disciplined cost control and further pipeline progress. Core EPS for the yea was 102.4 pence, up by 12 per cent and we have announced a dividend of 23 pence for the quarter, making a total dividend for shareholder of 80 pence for 2016. “

He added, “Our performance reflects the investments we have made to build new scale and sustainability in the Group and to develop new products. We expect the sales momentum of our new products to continue and, with regulatory decisions on other major product opportunities also expected this year, like Shingrix and Closed Triple, we remain confident in the financial outlook we have previously set out for investors.”

For the full year ended December 2016, GSK's net sales increased by 16.6 per cent £27,889 million from £23,923 million in the previous year. However, its net profit declined sharply by 87.3 per cent to £1,062 million from £8,372 million as it incurred other expenditure of £3,405 million as against other income of £7,715 million and its EPS moved down to 18.8 pence Taxation figure came down to £877 million from £2,154 million.

Its Pharmaceuticals sales increased by 3 per cent to £16,104 million during 2016 and Vaccines sales improved by 14 per cent to £4,592 million. The sales of Consumer Healthcare segment increased by 9 per cent and touched to £7,193 million. Its US sales improved by 10 per cent to £10,197 million and that in Europe reached at £7,498 million. Besides, US and Europe, its international sales reached at £10,194 million.

Its US pharma sales improved to £6,837 million in 2016 and that in Europe were at £3,884 million. Its pharma sales in emerging markets declined by 4 per cent due to the decline in the China business (down by 12 per cent primarily as a result of the ongoing reshaping programme and broader Healthcare reforms including price reductions). Even its Japanese pharma sales declined by 5 per cent to £1,425 million.

Its HIV sales grew by 37 per cent in the year 2016. The respiratory portfolio returned to growth with sales up two per cent, continuing the transition globally to newer products. .

Its R&D expenditure increased marginally to £3,628 million from £3,560 million. Sir Andrew Witty, chief executive officer, commented, “The next 24 months will be significant for GSK's pipeline and it marks the start of another intense period of R&d activity for the company, as we expect important data read-outs on around 20-30 assets in HIV, respiratory, immuno-inflammation, oncology and vaccines.”