GSK - segment and product sales reporting changes

 Issued: 1 April 2022, London, U.K.

GSK publishes segment and product sales reporting changes

GlaxoSmithKline plc ("GSK") keeps its financial reporting under regular review to ensure that it remains current and in line with both the latest regulatory requirements and developing best practice within the Pharmaceutical industry.

Revised reporting segments for Pharmaceuticals and Vaccines

GSK announced at the Investor Update on 23 June 2021 that revised reporting segments for new GSK would be presented from the first quarter 2022 results. The new operating segments are reported based on the financial information provided to the Chief Executive Officer and the responsibilities of the GSK Leadership Team (GLT).

Previously, GSK reported results under four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines and Consumer Healthcare. From the first quarter 2022 results GSK will report results under three segments on the following basis:

· The Commercial Operations segment includes the results that were previously reported under the Pharmaceuticals segment and the Vaccines segment but now excludes expenditure related to research & development included in the segment below. This change reflects the closer integration and management of the commercial, manufacturing and other operations of the Pharmaceutical and Vaccines portfolio. The Commercial Operations segment continues to include the ViiV Healthcare commercial operating profit. The research and development managed expenditure related to ViiV Healthcare (previously reported within the Pharmaceuticals segment) and Vaccines (previously reported within the Vaccines segment) will be reported as part of the Research and Development segment. The Commercial Operations segment will also include the Group's global health initiatives that were previously separately reported through the Pharmaceuticals R&D and Vaccines segments as well as within Corporate and other unallocated costs;

· The Research and Development segment includes the costs previously reported under the Pharmaceuticals R&D segment. The segment will also include the research and development managed expenditure related to ViiV Healthcare (previously reported within the Pharmaceuticals segment) and Vaccines (previously reported within the Vaccines segment). The new segment reflects the changes that have been made to the management of research, development and other related costs (such as regulatory and administration costs) through the "One R&D" organisational changes. The Research and Development segment now excludes costs related to the Group's global health initiatives;

· The Consumer Healthcare segment will be reported as a "Continuing operation" operating segment until such time as the formal criteria for treating Consumer Healthcare as a 'Discontinued operation' have been satisfied (currently expected in Q2 2022). We will consolidate the business for reporting purposes until the demerger has completed.

Corporate and other unallocated costs include the costs of corporate functions that are not managed by and are not the responsibility of the operating segments.

The revised segment turnover and operating profit tables below set out the new operating segments that will be used from the first quarter 2022 results, as applied to the 2021 quarterly reported turnover and profits.

Product sales to be reported within three product groups - Specialty Medicines, General Medicines and Vaccines

GSK will report product sales within three product groups from the first quarter 2022 results:

· Specialty Medicines products will include GSK's marketed products for HIV, oncology, immuno-inflammation, respiratory and other specialty medicines (including Nucala) and the pandemic solution, Xevudy;

· General Medicines products, which include products previously reported as Established Pharmaceuticals and sales of Trelegy Ellipta and Anoro Ellipta (previously reported within the Respiratory category under Specialty products). These products are typically accessed by patients through primary care settings;

· Vaccines products, including sales of GSK's AS03 adjuvant as part of the pandemic solutions.

Disclosure of Consumer Healthcare category for brands divested and under review to be removed

Following the completion of the Consumer Healthcare brand divestment programme in the first quarter 2021, the sales of the remaining products that were reported under the brands divested and under review category and which have not been divested will be reported under their original category again from the first quarter 2022 results. In addition, the sales of the brands divested in the first quarter 2021 will also not be reported in the separate brands divested category for the comparative periods of 2021.

As a result of these changes, from the first quarter 2022 the presentation of a separate category for brands divested and under review will no longer be required.

The revised turnover tables below set out the revised format for reporting sales that will be used from the first quarter 2022 results, as applied to the 2021 quarterly reported product sales.

An Excel version of this data is available on www.gsk.com.

GSK - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com

Analyst/Investor enquiries:

Nick Stone

+44 (0) 7717 618834

(London)

James Dodwell

+44 (0) 7881 269066

(London)

Mick Readey

+44 (0) 7990 339653

(London)

Joshua Williams

+44 (0) 7385 415719

(London)

Jeff McLaughlin

+1 215 589 3774

(Philadelphia)

Frances De Franco

+1 570 236 4850

(Philadelphia)

Sonya Ghobrial

+44 (0) 7392 784784

(Consumer)

Rakesh Patel

+44 (0) 7552 484646

(Consumer)

Emma White

+44 (0) 7823 523562

(Consumer)

Cautionary statement regarding forward-looking statements 

GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described in the Company's Annual Report on Form 20-F for 2021, and any impacts of the COVID-19 pandemic. 

Brand names

Brand names appearing in italics throughout this document are trademarks of GSK or associated companies or used under licence by the Group.

This Announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006. The information for 2021 has been derived from the full Group accounts published in the Annual Report 2021.

Registered in England & Wales:

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Registered Office:

980 Great West Road

Brentford, Middlesex

TW8 9GS

Turnover by segment

Q1 2021

£m

Q2 2021

£m

Q3 2021

£m

Q4 2021

£m

Full Year

£m

Commercial Operations

5,106 

5,800 

6,571

7,030 

24,507 

Consumer Healthcare

2,312 

2,292 

2,506

2,497 

9,607 

Total turnover

7,418 

8,092 

 9,077

9,527 

34,114 

Operating profit by segment

Q1 2021

£m

Q2 2021

£m

Q3 2021

£m

Q4 2021

£m

Full Year

£m

Commercial Operations

2,451 

2,871 

3,455 

2,701 

11,478 

Research and Development

(1,030)

(1,119)

(1,139)

(1,281)

(4,569)

Consumer Healthcare

535 

498 

648 

558 

2,239 

Segment profit

1,956 

2,250 

2,964 

1,978 

9,148 

Corporate and other unallocated costs

(75)

(92)

(90)

(85)

(342)

Adjusted operating profit

1,881 

2,158 

2,874 

1,893 

8,806 

Adjusting items

(188)

(483)

(936)

(998)

(2,605)

Total operating profit

1,693 

1,675 

1,938 

895 

6,201 

Finance income

10 

7 

7 

4 

28 

Finance costs

(201)

(192)

(200)

(191)

(784)

Loss on disposal of interests in associates

- 

(36)

- 

- 

(36)

Share of after tax profits of associates

and joint ventures

16 

16 

3 

(2)

33 

Profit before taxation

1,518 

1,470 

1,748 

706 

5,442 

Commercial Operations turnover

Q1 2021

£m

Q2 2021

£m

Q3 2021

£m

Q4 2021

£m

Full Year

£m

HIV

1,031 

1,235 

1,251 

1,260 

4,777 

Oncology

110 

119 

128 

132 

489 

Immuno-inflammation, respiratory and other

434 

525 

526 

558 

2,027 

Pandemic

- 

- 

114 

828 

958 

Specialty Medicines

1,575 

1,879 

2,019 

2,778 

8,251 

Respiratory

1,492 

1,514 

1,492 

1,550 

6,048 

Other General Medicines

815 

836 

886 

893 

3,430 

General Medicines

2,307 

2,350 

2,378 

2,443 

9,478 

Meningitis

190 

225 

352 

194 

961 

Influenza

18 

33 

384 

244 

679 

Shingles

327 

295 

502 

597 

1,721 

Established vaccines

689 

758 

841 

682 

2,970 

Pandemic

- 

260 

95 

92 

447 

Vaccines

1,224 

1,571 

2,174 

1,809 

6,778 

Total Commercial Operations turnover

5,106 

5,800 

6,571 

7,030 

24,507 

Consumer Healthcare turnover

Q1 2021

£m

Q2 2021

£m

Q3 2021

£m

Q4 2021

£m

Full Year

£m

Oral health

695 

663 

702 

672 

2,732 

Pain relief

548 

563 

588 

582 

2,281 

Vitamins, minerals and supplements

349 

359 

406 

398 

1,512 

Respiratory health

244 

212 

330 

357 

1,143 

Digestive health and other

476 

495 

480 

488 

1,939 

2,312 

2,292 

2,506 

2,497 

9,607