GSK announces profit rise

GlaxoSmithKline (GSK) has recorded in-line annual results, while its profits before tax for the year ended December 31st 2006 were up 19 per cent.

Turnover was up nine per cent for the period to 23.2 billion pounds, on the back of a strong performance in US pharmaceutical businesses, the group said. This part of the company grew 16 per cent, causing earnings per share to rise 19 per cent.

Pharmaceuticals sales were up nine per cent over the year, with GSK recording revenues of 21.1 billion pounds. Performance was “strong” from all GSK’s products, with the highest growth being seen from Coreg – up 38 per cent to 779 million pounds.

In addition, the group said next year’s earnings will exceed market expectations. This guidance caused shares to rise to a three-month high in trading, AFX said.

Commenting on the 2006 performance and next year’s outlook, JP Garnier, the company’s chief executive, said: “GSK continues to make progress on all fronts. Sales growth is coming from an ever-widening portfolio of fast-growing products, and sustained improvements in margin have enabled us to deliver a strong financial performance.”

He added that the firm has “very healthy momentum” in its innovations, citing ten new products added to its late-stage development list over the last year.