Results announcement for the fourth quarter 2014

Issued: London, UK

GSK delivers 2014 core EPS of 95.4p (-1% CER excluding divestments) and dividend of 80 pence per share (+3%)

View full Q4 2014 results (PDF)

• 2014 Group revenues £23 billion (-3% excluding divestments) with Pharmaceutical and Vaccine sales growth in Emerging Markets (+5%), Japan (+1%) and HIV (+15%) partly offsetting US (-10%) reflecting challenging trading conditions in primary care market and Established Products (-16%); Europe sales flat
• Consumer Healthcare sales -1% with return to growth in Q4 (+2%) following remediation of manufacturing supply issues
• Proposed 3-part transaction with Novartis remains on track for completion in H1 2015
• Investor Day to be held following completion of transaction to profile medium and long term opportunities and shape for the Group
• R&D Day to profile new pharmaceuticals and vaccines pipelines to be held in October 2015
• Ongoing restructuring programmes delivered £400 million incremental annual cost savings in 2014
• Core EPS 95.4p (-1%) benefiting from cost and financial efficiencies
• Total EPS 57.3p (-40%) primarily reflecting non-cash adjustments to the contingent consideration due in relation to ViiV Healthcare as a result of the improved sales outlook for Tivicay and Triumeq as well as an unfavourable comparison with product and asset disposal gains in 2013
• Adjusted net cash inflow from operations £5.9 billion (-20% in Sterling terms) significantly impacted by strength of Sterling in first nine months; Q4 broadly flat (in Sterling terms), benefiting from more favourable currency movements and working capital improvements
• 2014 dividend 80p (+3%).  Expectation reiterated for 2015 dividend per share to be maintained at the same level
• £4 billion of net proceeds from Novartis transaction expected to be returned to shareholders in 2015**

* The full results are presented under ‘Income Statement’ on page 31 and Core results reconciliations are presented on pages 46 to 49.
For explanations of the measures ‘Core results’, and ‘CER’, see page 29. 2014 core performance is measured against 2013 core results excluding divestments completed during 2013. All commentaries are presented in terms of CER growth, unless otherwise stated.
** If any repayment of consideration for the Oncology disposal is required in connection with the COMBI-d trial, the amount to be returned will be reduced by the after-tax impact of that repayment.

Full details with CEO and CFO interviews available in the quarterly results section of this website.

GSK cautionary statement regarding forward-looking statements
GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described under Item 3.D 'Risk factors' in the company's Annual Report on Form 20-F for 2013.