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LONDON (Alliance News) - GlaxoSmithKline PLC on Wednesday reiterated its full-year earnings and dividend guidance, as it reported a rise in pretax profit for the third quarter of 2016.
The pharmaceuticals giant reported a pretax profit of GBP1.27 billion for the third quarter to the end of September, up from GBP867 million the prior year, on revenue of GBP7.54 billion, up from GBP6.13 billion.
Glaxo saw a strong performance across all three of its businesses year-on-year, with Pharmaceuticals up 6% in constant currencies, Vaccines up 20%, and Consumer Healthcare up 5%. Additionally, new product sales in the quarter were GBP1.2 billion, and new pharmaceutical products sales made up 25% of total pharmaceutical sales in the quarter.
Core earnings per share for the quarter was 32 pence for the third quarter, up 12% from the previous year in constant currencies, Glaxo said. The company's core results strip out amortisation, impairment, major restructuring costs and legal charges, amongst other costs.
Glaxo continues to expects to deliver core earnings per share percentage growth of 11% to 12% at constant currency for 2016 as a whole. It noted that, if foreign exchange rates hold at the levels at the end of the third quarter, it would expect an around 21% boost to its sterling core earnings per share growth.
It proposed a 19 pence dividend for the third quarter, and continues to expect to pay a total dividend of 80 pence in both 2016 and 2017.
"Our third quarter results reflect strong performances across the group and the sustained progress we have made over the course of 2016 to deliver sales growth of new products, maintain effective cost control and execute on our restructuring and integration plans," said outgoing Chief Executive Officer Andrew Witty in a statement.
"Our most recent review of the group's pipeline reinforces our confidence in the near-term portfolio and the options we have in early-to-mid stage development. With the filing of Shingrix in the US this week, we have completed three of the four regulatory filings targeted for the second half of 2016, and we expect to start four Phase III trials for assets in HIV, respiratory and anaemia before the end of the year," Witty added.
Shares in Glaxo were up 0.2% to 1,633.00p after the announcement on Wednesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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