GlaxoSmithKline profits down as European sales falter

GSK office GlaxoSmithKline could launch 15 new products in the next three years

Related Stories

UK drug giant GlaxoSmithKline (GSK) has reported pre-tax profits of £7.64bn for the year to 31 December 2012, down 4% on the year before.

Turnover fell 1% to £26.4bn, hit by "weaker than expected" European sales, which were down 7%.

Chief executive Sir Andrew Witty described the operating environment as "challenging".

But sales in emerging markets grew 10% and now account for 26% of GSK's business, the company said.

GSK, which makes well-known drug brands such as Seroxat/Paxil, Zovirax and Avandia, "returned over £6.3bn to shareholders", Sir Andrew said, and has the potential to launch 15 new products over the next three years, pending regulatory review and successful trial data.

The company's restructuring and cost-cutting programme aims to achieve annual pre-tax savings of £1bn a year by 2016, but will cost £1.5bn.

As part of the programme, GSK is carrying out a review of its "iconic" consumer drinks brands Lucozade and Ribena, looking at "the best ways to ensure their continued growth".

Looking forward to 2013, the company expects to achieve earnings per share growth of 3% to 4% and sales growth of about 1%, Sir Andrew said.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • Man holding lipWitch hunt

    The country where a writer accused of blasphemy must run


  • Espresso cupNews quiz

    Which city serves the strongest cup of coffee?


  • A woman's stomach with the words "I love IDF"'War porn'?

    Support - and disdain - for women posting sexy selfies for the IDF


  • Malaysian plane wreckage in UkraineFlight risk

    How odd is it to have three plane crashes in eight days?


Elsewhere on the BBC

  • Canada.Hidden rail trip

    Canada's tiny, two-car shuttle is a train lover's dream with scenic views

Programmes

  • Leader of Hamas Khaled MeshaalHARDtalk Watch

    BBC exclusive: Hamas leader on the eagerness to end bloodshed in Gaza

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.