GSK delivers 2013 core EPS of 112.2p (+4% CER) and dividend of 78p (+5%)
Summary
GSK delivers 2013 reported turnover of £26.5 billion, up 1% (CER), and core EPS of 112.2p, up 4%
(CER), in line with financial guidance
£5.2 billion of cash returned to shareholders through 5% increase in 2013 dividend to 78p,
(Q4 23p) and repurchase of £1.5 billion of shares
Exceptional year for R&D delivery with approvals for 6 major products and 5 additional regulatory
filings completed, helping to drive continued improvement in estimated R&D internal rate of return
to 13%
New product launches strengthen businesses in Respiratory, Vaccines, HIV and Oncology. Around
30 brand innovations/extensions expected in Consumer Healthcare in 2014
Expanding respiratory portfolio with 2 significant recent approvals and 7 potential new products in
late-stage development provides platform to maintain market leadership to 2020 and beyond
Pipeline opportunity remains substantial with Phase III data for 6 potential new drugs and vaccines
and around 10 NME Phase III starts across 2014 and 2015
Portfolio re-shaping continues with £2.5 billion raised from divestments completed in 2013 to
increase focus of Consumer Healthcare and Pharmaceutical businesses. New Established Products
Portfolio provides further opportunities to optimise value
Operating and financial efficiencies driving EPS leverage. Year-on-year cost savings of around
£400 million delivered in 2013 with similar amount expected in 2014 helping to offset mix pressure
and fund ongoing investment requirements
Continued strong cash generation, with adjusted net cash inflow from operating activities of
£7.3 billion (+5%)
Expect 2014 core EPS growth of 4 to 8% CER, on turnover growth of around 2% CER, on an
ex-divestment basis (2013 EPS base 108.4p)
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