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(Sharecast News) - GlaxoSmithKline backed its full-year guidance on Wednesday as it posted a jump in first-quarter turnover, with growth across all three of its business and as sales of shingles vaccine Shingrix surged.
Group sales rose 19% to ?91bn, with pharmaceuticals sales up 6% to ?4.4bn, vaccines sales 19% higher at ?1.8bn and consumer healthcare revenue up 44% at ?2.9bn.
Within the vaccines segment, sales of Shingrix increased 81% to ?647m, while the rise in consumer healthcare sales was largely driven by the inclusion of the Pfizer portfolio.
Glaxo said the sales growth reflects a strong underlying performance and the additional impact from increased demand including stock-building for many products in Europe and the US amid the Covid-19 pandemic.
The company maintained guidance for full-year 2020 adjusted earnings per share to decline between 1% and 4% at constant exchange rates. "This guidance reflected our expectations for growth in key new products, and the start of a two-year period in which we would continue to increase investment in these products and in our R&D pipeline, alongside implementation of our new programme which will prepare the group for separation," it said.
Glaxo pointed out that the guidance excluded any impact this year from divestments beyond those previously announced and any potential impact from the coronavirus outbreak.
"Based on our current assessment of the impact of Covid-19, we are maintaining our adjusted EPS guidance for the year at this point, but we will, if needed, update guidance as more information becomes available to inform our expected financial performance for the full-year 2020."
Chief executive officer Emma Walmsley said: "Our business performed strongly in the quarter with growth in sales and earnings reflecting good underlying performance and increased demand, including stock-building, for many of our products."
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "Pharmaceutical companies are generally considered defensive investments because the medicines and vaccines they provide are essential. That's perhaps more true than ever in the current health driven crisis and GlaxoSmithKline's sales have performed accordingly, with guidance for the full year unchanged.
"That's made the group, and indeed the sector, a safe harbour for income investors in the current crisis. Given both AstraZeneca and Glaxo are large contributors to the total UK stock market dividend yield that's very welcome."
2 May 2024 19:57
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