GSK delivers 2013 core EPS of 112.2p (+4% CER) and dividend of 78p (+5%)

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)

- read the full release (PDF)

Suggested Articles

Pfizer will exit its Perth, Australia sterile injectables manufacturing site by 2024 as part of a global production reorganization effort.

Agios has withdrawn a European application for Tibsovo in AML after the same phase 1 data that earned it an FDA nod failed to impress the EMA.

Sanofi is reportedly considering a sale of some of its anti-inflammation drugs that could snare $234 million as the company pivots toward Dupixent.