LONDON (Alliance News) - GlaxoSmithKline PLC Wednesday clarified its earnings per share expectations for 2016, although reiterated its dividend plans for the next two years, as it said it had seen an "encouraging start to the year".
The company now expects full year core earnings per share percentage growth of between 10% and 12% at constant currency for 2016, having previously said it expects core EPS growth to hit double digits at constant currency at the time of its full year results in February.
Glaxo reported a pretax profit of GBP560 million for the first quarter of 2016, down significantly from GBP9.92 billion the year before as the company had been boosted by exceptional gains from the sale of its Oncology business to Novartis AG.
Revenue rose to GBP6.23 billion from GBP5.62 billion the year before, as a 1% decline in its pharmaceuticals division was offset by a jump in revenue from its vaccines and consumer health segments, boosted by its deal with Novartis that was completed in early 2015.
Core earnings per share for the quarter rose 8% at constant currency to 19.8 pence, Glaxo said, signalling an "encouraging" start to the year.
It proposed a dividend of 19 pence for the quarter and reiterated its expectations for a full year dividend of 80 pence for both 2016 and 2017.
"Overall, the quarter reflects the progress we have made in our strategy and our ability to allocate capital across our three businesses to generate the best returns. Together with the roll out of our new commercial model, we believe the group is well placed to maximise the opportunities, and respond to the competitive pressures and challenging pricing dynamics, that we see in the global healthcare environment," said Chief Executive Officer Andrew Witty in a statement.
Glaxo shares were up 1.6% to 1,481.5p.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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