GlaxoSmithKline (NYSE: GSK) reported Q1 EPS of GBP0.20, versus GBP0.17 reported last year. Revenue for the quarter came in at GBP6.23 billion, versus GBP5.62 billion reported last year.

Summary

• Group sales £6.2 billion +8% CER on a reported basis, +6% CER pro-forma
- Pharmaceuticals £3.6 billion, -1% (+5% pro-forma); Vaccines £882 million, +23% (+14% pro-forma); Consumer Healthcare £1.8 billion, +26% (+4% pro-forma)

• New product sales £821 million (Q4 2015: £682 million, Q1 2015: £269 million) driven by HIV (Tivicay, Triumeq), Respiratory (Relvar/Breo, Anoro, Incruse, Nucala) and Meningitis vaccines (Menveo, Bexsero)
- New Pharmaceutical product sales now represent 20% of total Pharmaceutical sales

• Sales momentum, cost control and restructuring/integration benefits driving improved operating leverage and margin delivery across all three businesses
- Restructuring and integration programme delivered incremental cost savings in Q1 2016 of £0.4 billion; remains on track for £3 billion annual cost savings by end 2017
- Q1 operating margins of Pharmaceuticals 32%, Vaccines 29%, Consumer Healthcare 17%

• Q1 core EPS 19.8p, +8% CER

• Q1 total EPS 5.8p with year-on-year decline reflecting £9.3 billion profit from Oncology disposal and other disposal gains in Q1 2015
- Restructuring charges of 3.3p per share and non-cash transaction-related charges of 6.9p (principally related to HIV and Consumer Healthcare businesses)

• 2016 core EPS percentage growth now expected to be 10-12% CER
- At Q1 period-end rates estimated FX impact of +8% to FY 2016 core EPS growth

• 19p dividend declared for Q1. Continue to expect 80p for FY 2016 and FY 2017

• Development of new R&D pipeline continues with progress made in core therapy areas of Respiratory, HIV, Oncology, Immuno-inflammation and Rare diseases
- Nucala approved in Japan for severe asthma
- Strimvelis received positive CHMP opinion for rare disease, ADA-SCID
- Phase II data support progression of HIV asset cabotegravir into Phase III studies for prevention and maintenance in H2 2016; transactions to acquire BMS HIV R&D portfolio completed
- Phase II study start for anti GM-CSF antibody for inflammatory hand OA
- FDA breakthrough therapy designation awarded to NY-ESO in synovial sarcoma; Phase I/II data supports development of BET inhibitor in NUT midline carcinoma; 11 oncology assets currently in Phase I/II development

For earnings history and earnings-related data on GlaxoSmithKline (GSK) click here.