UK GSK's net profit down 14% on flat group sales

23 October 2013 16:06  [Source: ICIS news]

LONDON (ICIS)--GlaxoSmithKline’s (GSK) third-quarter net profit fell by 14% year on year to £1.01bn on largely flat sales, the UK pharmaceutical firm said on Wednesday.

Group core turnover for the quarter was £6.51bn from £6.53bn in the same quarter last year, while operating profit fell by 5.3% to £1.57bn ($2.53bn, €1.85bn), the company said in a statement.

Earnings per share for the quarter were 20.0 pence compared with 22.6 pence in the 2012 third quarter.

GSK said pharmaceuticals and vaccines sales had been flat and were impacted by a decline in China sales.

“Contributions from across the group helped to deliver sales growth in Q3 [up 1% on a constant exchange rate - CER - basis] despite a significant decline in sales from our Chinese business and lower vaccine shipments in emerging markets due to the phasing of tender orders,“ said CEO Andrew Witty.

GSK’s operations in China have been disrupted by a criminal investigation into alleged bribery and tax-related violations by the senior members of the company’s Chinese division.

Sales there have declined by 61%, the CEO said, adding: “We continue to co-operate with the authorities and we remain fully committed to supplying our products to patients in the country.

“At this stage, it is still too early for us to quantify the longer-term impact of the investigation on our performance in China.”

($1 = €0.73, €1 = £0.85)

By: Graeme Paterson
+44 20 8652 3214

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