Pharmaceuticals giant GlaxoSmithKline (GSK) has revealed profits fell by more than a fifth last year, but said it remained on track to spin off its consumer healthcare arm by the middle of 2022.
The group reported a 22 per cent drop in pre-tax profits to £5.4 billion – a 10 per cent decline with currency movements stripped out. It said the drop in earnings was largely down to the sale of Horlicks and other consumer brands, as well as its share in Hindustan Unilever.
On an underlying basis GlaxoSmithKline said operating profits stood at £8.8 billion – 1 per cent lower, but 9 per cent higher on a constant currency basis as turnover rose 5 per cent to £34.1 billion thanks to strong pandemic-related sales, higher drugs revenues and cost savings amid restructuring efforts.
It forecast underlying operating profits to rise by between 12 per cent and 14 per cent on a constant currency basis this year on sales 5 per cent to 7 per cent higher.
The group is pressing ahead with a demerger and listing of its consumer healthcare arm in the middle of the year having recently seen Unilever drop its £50 billion bid interest for the division, which was dismissed by GSK for being to low.
Emma Walmsley, chief executive of GSK, said: "We have ended the year strongly with another quarter of excellent performance driven by first-class commercial execution, and we enter 2022 with good momentum.
“This is going to be a landmark year for GSK, with a step-change in growth expected and multiple R&D catalysts, including milestones on up to seven key late-stage pipeline assets.”
She added: “2022 is also the year when we demerge our world-leading consumer healthcare business.” - Reuters
