Results announcement for the first quarter 2014

Q1 turnover £5.6 billion, -2% (CER) on an ex-divestment* basis.

View full Q1 2014 results (PDF)

• Pharmaceutical and Vaccines sales growth in all major regions except US: Europe +3%, Emerging Markets +2%, Japan +13%. US (-10%) impacted by continued competition in respiratory market and quarterly volatility in wholesaler/retailer stocking patterns
• HIV sales +4%, driven by uptake of recently launched integrase inhibitor, Tivicay
• Vaccines sales +3%, with US growth partly offset by phasing of tenders in Emerging Markets
• Consumer Healthcare sales flat with Rest of World growth (+6%) offsetting the impact in US and Europe of temporary supply interruptions to certain products
• Core EPS 21.0p (+2% CER) driven by operating leverage and financial efficiencies
• Continued progress in strategy to renew and diversify respiratory portfolio
• Continued R&D momentum expected to continue with around 40 NMEs currently in phase II/III clinical development
• First quarter dividend +6% to 19p. Share buy backs of £1-2 billion targeted during 2014
• Full year guidance of core EPS growth of 4-8% CER reiterated. Sales expected to grow in CER terms and on an ex-divestment basis
• Major three-part transaction announced with Novartis intended to strengthen sustainability of Group sales base and improve long term earnings outlook. Completion, subject to shareholder and regulatory approval, expected by H1 2015