Results Announcement for the third quarter 2016

Issued: London, UK

GSK delivers sales growth, improved cash flow and sustained pipeline progression in Q3

  • Group sales £7.5 billion, +8% CER, with continued growth across all three businesses

  • New product sales £1.21 billion +79% (Q1 2016: £821 million; Q2 2016: £1.05 billion) driven by HIV (Tivicay, Triumeq), Respiratory (Relvar/Breo, Anoro, Incruse, Nucala) and Meningitis vaccines (Bexsero, Menveo)

  • Improved operating leverage driven by sales growth, delivery of restructuring and integration benefits and continued tight control of costs including targeted reinvestments

  • Q3 total earnings per share 16.6p, -1% CER, impacted by charges resulting from increases in valuations of Consumer Healthcare and HIV businesses

  • Q3 core earnings per share 32p, +12% CER

  • Continue to expect 2016 core EPS percentage growth to be 11-12% CER

  • Q3 net cash inflow from operations of £1.8 billion (Q3 2015: £0.5 billion)

  • 19p dividend declared for Q3.  Continue to expect 80p for FY 2016 and 2017

  • Sustained delivery in R&D pipeline

Full details available in the quarterly results section of GSK's global website.