GlaxoSmithKline FY21 Adj. Operating Profit Rises 9% At CER; Turnover Up 5%

(RTTNews) - GlaxoSmithKline Plc (GSK.L, GSK) reported fiscal 2021 adjusted operating profit of 8.81 billion pounds, 1% lower than 2020 at AER, but 9% higher at CER on a turnover increase of 5% CER. The company said the increase in adjusted operating profit primarily reflected the benefit from incremental pandemic sales, sales growth in Pharmaceuticals and tight control of ongoing costs, favourable legal settlements and benefits from continued restructuring across the business. Adjusted earnings per share was 113.2 pence compared to 115.9 pence, previous year, down 2% AER but up 9% CER.

Looking forward, in 2022 for new GSK, sales are expected to grow between 5% to 7% at CER and adjusted operating profit to grow between 12% to 14% at CER as compared with 2021.

Fiscal year profit before tax declined to 5.44 billion pounds from 6.97 billion pounds, prior year. Earnings per share was 86.6 pence compared to 114.1 pence. The Group said this primarily reflected an unfavourable comparison as 2020 benefited from the net profit on disposal of Horlicks and related transactions.

Fiscal 2021 Group turnover was 34.11 billion pounds, stable at AER but up 5% CER. Sales of COVID-19 solutions contributed approximately 4 percentage points to growth in the year. Pharmaceutical turnover was 17.73 billion pounds, up 4% AER and 10% CER.

Vaccines turnover was 6.78 billion pounds, down 3% AER but up 2% CER. Vaccines turnover excluding pandemic vaccines decreased 9% AER, 5% CER to 6.33 billion pounds. Consumer Healthcare turnover was 9.61 billion pounds, down 4% AER but remained stable at CER.

The Board has declared a fourth interim dividend for 2021 of 23 pence per share. GSK expects to declare a 27 pence per share dividend payable by the current group for the first half. This comprises 22 pence per share for new GSK and 5 pence per share representing Consumer Healthcare during the first half whilst part of the group. For the second half of 2022, new GSK continues to expect to declare a 22 pence per share dividend.