23rd Oct 2013 11:38
LONDON (Alliance News) - GlaxoSmithKline PLC Wednesday posted lower pretax profit and revenue in the third quarter as it continued to feel the impact of ongoing investigations in China and vaccine shipments in emerging markets fell.
The drugs giant said pretax profit in the three months to end-September was GBP1.40 billion, down from GBP1.49 billion a year earlier, while revenues dipped to GBP6.51 billion from GBP6.53 billiion in the previous year.
Core operating profit, the company's preferred measure of profitability as it excludes items like restructuring costs and acquisitions and disposals, rose 11%, driven by strong cost control and reductions in research and development expenditure.
Despite significant declines in sales from the company's Chinese business and lower vaccine shipments in emerging markets, Glaxo said that it had seen overall sales growth in the third quarter at constant exchange rates.
EMAP pharmaceuticals and vaccines were down 9%. Ongoing investigations into bribery in the business in China have disrupted operations. The company said it was continuing to co-operate with authorities, but it was too early to quantify the long-term impact of this issue.
In the US pharmaceuticals and vaccines sales grew 2%, but were negatively impacted by wholesaler and retailer de-stocking. Sales in the company's European pharmaceuticals and vaccines business were up 5% despite the challenging commercial environment, Glaxo said, as measures taken to restructure and focus the business had begun to show benefits.
Core earnings per share were 28.9 pence. The company proposed a dividend of 19 pence, up from 18 pence in the previous year.
GlaxoSmithKline reaffirmed its full year guidance for 2013, expecting core EPS growth between 3% to 4%, with sales growth around 1%.
Shares in the pharmaceutical giant were trading up 0.50 pence at 1,600.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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