GlaxoSmithKline Net Income Boosted by Strong Sales, Weak Pound

By Denise Roland

GlaxoSmithKline PLC said net income ballooned in the first quarter of the year thanks to strong sales growth of the company's newer drugs, a boost from a weak pound, and a favorable year-earlier comparison.

The U.K. drug maker said net profit nearly quadrupled to 1.05 billion pounds in the first three months of the year, compared with GBP282 million a year ago, when earnings were hurt by a GBP489 million charge related to the re-evaluation of various joint ventures.

Adjusted operating profit, a measure that strips out one-time items, rose 30% to GBP1.98 billion, while revenue climbed 19% to GBP7.38 billion.

Glaxo, which reports in sterling but makes most of its revenue in other currencies, is benefiting from the weakness of the pound, which has fallen some 15% against the U.S. dollar and 10% against the euro since the U.K. voted to leave the European Union on June 23 last year.

Stripping out the currency effect, adjusted operating profit rose 9% and revenue climbed 5%.

Write to Denise Roland at [e-mail]

(END) Dow Jones Newswires

April 26, 2017 07:59 ET (11:59 GMT)

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