GSK delivers Q1 sales of £7.4 billion -18% AER, -15% CER Total EPS 21.5p, -32% AER, -25% CER; Adjusted EPS 22.9p -39% AER, -33% CER

On April 28, 2021 GSK reported that Q1 sales of £7.4 billion -18% AER, -15% CER Total EPS 21.5p, -32% AER, -25% CER; Adjusted EPS 22.9p -39% AER, -33% CER (Press release, GlaxoSmithKline, APR 28, 2021, View Source [SID1234578654])

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Highlights
Strong growth in new pharmaceutical products offset by stocking and pandemic disruption
Pharmaceuticals £3.9 billion -12% AER, -8% CER, with growth in new and specialty products (+3% CER) including: Respiratory +24% CER; Immuno-inflammation +26% CER; and Oncology +38% CER partly offsetting decline in Established Products -17% CER. HIV -11% CER impacted by 2020 stocking and tender phasing; HIV two-drug regimen sales +41% CER
Vaccines £1.2 billion -32% AER, -30% CER (Shingrix -47% CER) reflecting government prioritisation of COVID-19 vaccinations. Continue to expect strong growth from Shingrix in H2
Consumer Healthcare £2.3 billion -19% AER, -16% CER (-9% excluding divestments/brands under review) reflecting year-on-year "pantry-loading" comparison and weak cold/flu season
Effective cost control supports delivery of adjusted earnings per share of 22.9p
Total Group operating margin 22.8%. Total EPS 21.5p -32% AER, -25% CER
Adjusted Group operating margin 25.4%. Adjusted EPS 22.9p -39% AER, -33% CER
Q1 net cash flow from operations £331 million. Free cash outflow £3 million
Continued R&D delivery and strengthening of Biopharma pipeline
Launch of Cabenuva, the world’s first and only long-acting HIV treatment
Approvals of Rukobia and Jemperli (dostarlimab) and positive regulatory opinion for Benlysta
Phase III trial starts for RSV older adults vaccine and GSK ‘294 for severe asthma
Positive data for antibody treatment VIR-7831 with EUA filed in US and EU
Phase III trial start with Medicago for adjuvanted COVID-19 vaccine
On track to create New GSK and standalone Consumer Healthcare company in 2022
Consumer Healthcare JV commercial integration broadly complete; separation activities advancing
Pharmaceutical portfolio rationalisation continues with cephalosporin divestment announced
New GSK Investor Update on 23 June to outline strategy, growth outlooks (2022-2031), capital allocation priorities and timing and approach to separation
Reconfirming full-year 2021 EPS guidance and 2022 outlook
Continue to expect 2021 Adjusted EPS to decline by a mid to high-single digit percentage in CER
2022 outlook unchanged with meaningful improvements expected in revenues and margins
Dividend of 19p declared for Q1 2021. Continue to expect 80p/share for 2021

Emma Walmsley, Chief Executive Officer, GSK said:
"Our first quarter results are in line with our expectations and reflect the anticipated impacts of COVID-19. We continue to expect a significant improvement in performance over the remainder of the year and reconfirm our guidance for 2021 and 2022 outlook. The launch of Cabenuva for HIV and Phase III starts for our RSV vaccine and a new long-acting treatment for severe asthma are key milestones as we continue to strengthen our growth prospects. Separation plans are also well underway and we look forward to sharing our strategy and growth outlook for New GSK with investors in June."