9th Feb 2022 08:26
(Alliance News) -Â GlaxoSmithKline PLC on Wednesday met expectations with its 2021 results as it said the demerger of its consumer health business is on track for this year.
Revenue for 2021 nudged up to GBP34.11 billion from GBP34.10 billion the year before, marginally ahead of market forecasts for GBP34.08 billion.
The Brentford, England-based pharmaceutical firm noted that sales, while stable year-on-year on a reported basis, were up 5% at constant exchange rates. Covid-19 sales contributed 4 percentage points to growth.
Pretax profit declined to GBP5.44 billion from GBP6.97 billion. Adjusted pretax profit came in at GBP8.09 billion, in line with analyst expectations.
Glaxo declared a dividend of 23 pence for the fourth quarter, bringing the year's total to 80p, in line with the year before.
Pharmaceutical turnover in 2021 was GBP17.73 billion, up 4% on a reported basis up 10% higher at constant currencies.
Vaccines sales of GBP6.78 billion were down 3% reported but up 2% at constant rates, primarily driven by pandemic adjuvant sales and partially offset by lower demand for routine adult vaccination due to Covid vaccine efforts. Vaccines sales excluding Covid fell 9% on a reported basis.
Consumer Healthcare turnover was GBP9.61 billion, down 4% on a reported basis but remained stable at constant exchange rates.
For Consumer Healthcare, Glaxo said it is on track to demerge the business mid-year. It will provide a medium-term outlook for the division at a capital markets day later this month.
"At our capital markets event later this month, we will set out the future growth ambitions and highly attractive financial profile of this business, and the outstanding opportunity it provides for shareholders," said Chief Executive Emma Walmsley.
Turning to the outlook for the remaining company without the consumer health arm, new GSK expects 2022 sales to grow by between 5% to 7% at constant exchange rates and adjusted operating profit to grow by between 12% to 14% at constant currency as compared with 2021.
Adjusted operating profit in 2021 rose 9% at constant exchange rates to GBP8.81 billion, though declined 1% on a reported basis.
Assuming global economies and healthcare systems approach normality as the year progresses, Glaxo said it expect sales of Specialty Medicines to grow 10% at constant currency and sales of General Medicines to show a slight decrease. Glaxo said this was "primarily reflecting increased genericisation" of established Respiratory products. Vaccines sales are expected to grow at a low teens percentage at for the year as a whole.
"We have ended the year strongly, with another quarter of excellent performance driven by first-class commercial execution, and we enter 2022 with good momentum. This is going to be a landmark year for GSK, with a step-change in growth expected and multiple R&D catalysts, including milestones on up to 7 key late-stage pipeline assets," Walmsley said.
Shares in Glaxo were up 0.6% at 1,652.80 pence in London on Wednesday.
By Lucy Heming;Â [email protected]
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