GlaxoSmithKline PLC on Wednesday posted higher earnings and revenue for the first quarter, beating expectations as sales rose across the biopharma and consumer healthcare businesses.
Net profit at the British pharmaceutical major
came in at 1.80 billion pounds ($2.26 billion) for the quarter, up from GBP1.07 billion in the same quarter a year prior. Revenue grew to GBP9.78 billion, compared with GBP7.41 billion in the first quarter of 2021. A company-provided consensus had seen net profit coming in at GBP1.51 billion and revenue at GBP9.15 billion.
Earnings per share were 35.6 pence in the quarter, a jump from 21.3 pence in the same quarter the year prior. Adjusted earnings per share —a closely-watched metric — were 32.8 pence, which the company said is 43% higher than the year prior.
Turnover was boosted by the pandemic recovery of bestselling shingles vaccine Shingrix, recovery in the antibiotics market and sales of Covid-19 treatment Xevudy, the company said.
Shingrix sales more than doubled in the quarter, Glaxo said. The company continues to expect strong demand for the shot, though it acknowledged the potential for continued disruptions due to the pandemic, which could mean governments would prioritize Covid-19 vaccination programs to the detriment of other adult immunizations.
Glaxo confirmed its guidance for 2022, saying it expects to deliver sales growth of between 5% and 7% at constant exchange rates, and adjusted operating profit growth of between 12% and 14% at constant exchange rates. The guidance excludes contribution from Covid-19 solutions, the company said. The Covid-19 business is expected to contribute similar sales levels to 2021, but with substantially reduced profit contributions, the company said. This is due to an increased proportion of Xevudy sales, which have a lower margin. This is expected to reduce adjusted operating profit growth, including Covid-19 solutions, by between 5% to 7%, Glaxo said.
It reiterated that it is on track to demerge and list its consumer-healthcare business, named Haleon, in July.
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