Blueprint
 
FORM 6-K
 
 
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
 
Report of Foreign Issuer
 
 
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
 
 
 
For period ending 28 March 2019
 
GlaxoSmithKline plc
(Name of registrant)
 
 
 
980 Great West Road, Brentford, Middlesex, TW8 9GS
(Address of principal executive offices)
 
 
 
Indicate by check mark whether the registrant files or
will file annual reports under cover Form 20-F or Form 40-F
 
 
 
Form 20-F x     Form 40-F
 
--
 
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
 
 
 
Yes      No x
 
 
 
 
 
28 March 2019, London, U.K.
 
 
GSK publishes product sales reporting changes and the impact of IFRS 16 'Leases'
 
 
GSK keeps its financial reporting under regular review to ensure that it remains current and in line with both the latest regulatory requirements and developing best practice within the Pharmaceutical industry.
 
Respiratory category for reported sales to be updated
Following the approval of a generic alternative to Advair in the US, GSK has reviewed the presentation of its respiratory product sales and will report the Ellipta products portfolio and Nucala under the "Respiratory" category and all other respiratory products under "Established Pharmaceuticals" (disclosed separately as an Established Respiratory section) with effect from the first quarter 2019 Results Announcement.  This reflects the different stages of the product life-cycle of the various respiratory products and ensures consistency of reporting for the sales of products with similar levels of strategic focus.
The revised Pharmaceutical turnover tables below set out the revised format for reporting Pharmaceutical product sales that will be used from the first quarter 2019 results, as applied to the 2018 reported Pharmaceutical product sales.
 
New accounting requirements - IFRS 16 "Leases"
IFRS 16 "Leases" was issued in January 2016 and has been implemented by the Group from 1 January 2019. The Standard replaces IAS 17 "Leases" and will require lease liabilities and 'right of use' assets to be recognised on the balance sheet for almost all leases. This has resulted in a significant increase in both assets and liabilities recognised. The costs of operating leases previously included within operating costs will be split and the financing element of the charge will be reported within finance expense.
 
GSK has implemented IFRS 16 by applying the modified retrospective approach. For larger leases, the right of use asset at 1 January 2019 has been calculated based on the original lease inception date and for smaller leases the right of use asset has been set equal to the lease liability, adjusted for any prepaid or accrued lease payments, onerous lease provisions and business combination fair value adjustments.
 
The table overleaf shows the amount of adjustment for each financial statement line item affected by the application of IFRS 16 at 1 January 2019.
 
 
 
 
 
 
 
As previously reported
IFRS 16 adjustments
As adjusted
 
£m
£m
£m
Property, plant and equipment
11,058
(98)
10,960
Right of use assets
-
1,071
1,071
Other non-current assets
1,576
(11)
1,565
Trade and other receivables
6,423
3
6,426
Deferred tax assets
3,887
39
3,926
 
 
 
 
Short-term borrowings
(5,793)
(229)
(6,022)
Long-term borrowings
(20,271)
(1,074)
(21,345)
 
 
 
 
Trade and other payables
(14,037)
10
(14,027)
Current and non-current provisions
(1,423)
35
(1,388)
Other non-current liabilities
(938)
160
(778)
Deferred tax liabilities
(1,156)
 1
(1,155)
 
 
 
 
Total effect on net assets
3,672
(93)
3,579
 
 
 
 
 
 
 
 
Retained earnings
(2,137)
 (93)
(2,230)
 
 
 
 
Total effect on equity
3,672
 (93)
3,579
 
The adoption of IFRS 16 will have no impact on overall cash flows for the Group although the presentation of the lease payments in the cash flow statement will change resulting in an increase to the net cash inflow from operating activities, and hence free cash flow, and a corresponding increase in the net cash outflow from financing items (split between interest paid and net repayment of obligations under finance leases).
 
 
The IFRS 16 impact tables below set out, on a pro forma basis, the impact of IFRS 16 on the Total and Adjusted results for the quarters of 2018 assuming the same transition adjustments were made as at 1 January 2018 instead of 1 January 2019. The impact of the change would have been to increase the operating profit on a Total basis by £18 million and on an Adjusted basis by £23 million in 2018 and to increase the net finance expense by £28 million on a Total basis and £30 million on an Adjusted basis.
 
The impact of IFRS 16 for the full years 2019 and 2020 is expected to be at a similar level to 2018, and so this change is not expected to affect the Group's previously announced guidance related to its expectations for Adjusted EPS growth in CER terms for 2019 or the Group's medium-term outlook for Adjusted EPS growth in CER terms for the five year period 2016-2020.
 
An Excel version of this data is available on www.gsk.com.
 
 
 
 
 
 
GSK - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer.  For further information please visit www.gsk.com
 
 
 
 
 
 
Analyst/Investor enquiries:
Sarah Elton-Farr
+44 (0) 20 8047 5194
(London)
 
James Dodwell
+44 (0) 20 8047 2406
(London)
 
Danielle Smith
+44 (0) 20 8047 7562
(London)
 
Jeff McLaughlin
+1 215 751 7002
(Philadelphia)
 
 
 
 
 
This Announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006.  The information for 2018 has been derived from the full Group accounts published in the Annual Report 2018.
 
CER growth
In order to illustrate underlying performance, it is the Group's practice to discuss its results in terms of constant exchange rate (CER) growth. This represents growth calculated as if the exchange rates used to determine the results of overseas companies in Sterling had remained unchanged from those used in the comparative period.
 
 
 
 
 
Assumptions related to 2019 guidance and 2016-2020 outlook
In outlining the expectations for 2019 and the five-year period 2016-2020, the Group has made certain assumptions about the healthcare sector, the different markets in which the Group operates and the delivery of revenues and financial benefits from its current portfolio, pipeline and restructuring programmes.
For the Group specifically, over the period to 2020, GSK expects further declines in sales of Seretide/Advair. The introduction of a generic alternative to Advair in the US has been factored into the Group's assessment of its future performance. The Group assumes no premature loss of exclusivity for other key products over the period.
The assumptions for the Group's revenue, earnings and dividend expectations assume no material interruptions to supply of the Group's products, no material mergers, acquisitions or disposals, except for the acquisition of Tesaro, the proposed divestment of Horlicks and other Consumer Healthcare products to Unilever and the proposed formation of a new Consumer Healthcare Joint Venture with Pfizer, all announced in December 2018, no material litigation or investigation costs for the Company (save for those that are already recognised or for which provisions have been made), no share repurchases by the Company, and no change in the Group's shareholdings in ViiV Healthcare. The assumptions also assume no material changes in the macro-economic and healthcare environment. The 2019 guidance and 2016-2020 outlook have factored in all divestments and product exits since 2015, including the divestment and exit of more than 130 non-core tail brands (£0.5 billion in annual sales) as announced on 26 July 2017 and the product divestments planned in connection with the proposed Consumer Healthcare transaction with Pfizer.
The Group's expectations assume successful delivery of the Group's integration and restructuring plans over the period 2016-2020, including the extension and enhancement to the combined programme announced on 26 July 2017 as well as the new major restructuring plan announced on 25 July 2018.
They also assume that the proposed Consumer Healthcare nutrition disposal closes by the end of 2019 and the proposed Consumer Healthcare Joint Venture with Pfizer closes during H2 2019 and that the integration and investment programmes following the Tesaro acquisition and the proposed Consumer Healthcare Joint Venture with Pfizer over this period are delivered successfully.
Material costs for investment in new product launches and R&D have been factored into the expectations given. Given the potential development options in the Group's pipeline, the outlook may be affected by additional data-driven R&D investment decisions. The expectations are given on a constant currency basis (2016-2020 outlook at 2015 CER).
Subject to material changes in the product mix, the Group's medium-term effective tax rate is expected to be around 19% of Adjusted profits. This incorporates management's best estimates of the impact of US tax reform on the Group based on the information currently available. As more information on the detailed application of the US Tax Cuts and Jobs Act becomes available, the assumptions underlying these estimates could change with consequent adjustments to the charges taken that could have a material impact on the results of the Group.
 
Cautionary statement regarding forward-looking statements
The Group's reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document and written information released, or oral statements made, to the public in the future by or on behalf of the Group, may contain forward-looking statements. Forward-looking statements give the Group's current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as 'anticipate', 'estimate', 'expect', 'intend', 'will', 'project', 'plan', 'believe' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should, however, consult any additional disclosures that the Group may make in any documents that it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and shareholders and investors are cautioned not to place undue reliance on the forward-looking statements.
Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group's control or precise estimate. The Group cautions investors that a number of important factors, including those in this document, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under 'Principal risks and uncertainties' on pages 257-266 of the GSK 2018 Annual Report. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge of and information available to the Directors on the date of this report.
 
 
Registered in England & Wales:
No. 3888792
 
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
 
 
 
 
 
Revised format for reporting Pharmaceuticals product sales
 
The revised format for the reporting of Pharmaceutical product sales applied to the 2018 Pharmaceutical sales is as follows:
 
 
 
Pharmaceuticals turnover - year ended 31 December 2018
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
2,612
35 
38 
1,586
28 
31 
609
55 
54 
417
40 
45 
Ellipta products
2,049
29 
32 
1,245
24 
27 
457
42 
41 
347
33 
38 
   Anoro Ellipta
476
39 
42 
318
36 
39 
101
46 
45 
57
46 
54 
   Arnuity Ellipta
44
26 
29 
39
22 
25 
-
5
67 
67 
   Incruse Ellipta
284
41 
44 
186
39 
42 
74
45 
45 
24
50 
56 
   Relvar/Breo Ellipta
1,089
10 
581
(3)
(1)
253
25 
24 
255
26 
31 
   Trelegy Ellipta
156
>100 
>100 
121
>100 
>100 
29
>100 
>100 
6
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
563
64 
66 
341
44 
48 
152
>100 
>100 
70
84 
89 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
4,722
9 
11 
2,913
8 
10 
1,194
7 
6 
615
14 
20 
Dolutegravir products
4,420
14 
16 
2,830
11 
13 
1,091
18 
17 
499
28 
35 
   Tivicay
1,639
17 
19 
1,036
12 
15 
377
20 
18 
226
37 
47 
   Triumeq
2,648
1,670
706
17 
15 
272
21 
25 
   Juluca
133
>100 
>100 
124
>100 
>100 
8
1
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
117
(50)
(48)
7
(74)
(74)
44
(61)
(61)
66
(28)
(24)
Selzentry
115
(10)
(9)
58
(12)
(11)
35
(17)
(17)
22
10 
15 
Other
70
(41)
(40)
18
(59)
(59)
24
(35)
(38)
28
(26)
(21)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
472
25 
28 
420
24 
27 
36
33 
33 
16
45 
64 
Benlysta
473
26 
29 
420
24 
27 
37
37 
33 
16
60 
80 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
9,463
(11)
(8)
2,534
(23)
(21)
2,233
(9)
(10)
4,696
(4)
1 
Established Respiratory
4,316
(15)
(13)
1,782
(23)
(21)
924
(13)
(14)
1,610
(4)
-
    Seretide/Advair
2,422
(23)
(21)
1,097
(32)
(30)
599
(19)
(20)
726
(7)
(4)
    Flixotide/Flovent
595
333
93
(2)
(3)
169
(5)
    Ventolin
737
(4)
(1)
352
(7)
(5)
130
(2)
(2)
255
    Avamys/Veramyst
300
10 
-
74
(3)
(4)
226
11 
16 
    Other Respiratory
262
(9)
(7)
-
28
234
(9)
(7)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
435
(4)
3
(57)
(57)
161
(1)
(2)
271
(5)
Augmentin
570
(3)
-
181
(1)
(2)
389
(4)
Avodart
572
(7)
(5)
12
(20)
(20)
240
(19)
(20)
320
11 
Imigran/Imitrex
141
(16)
(16)
58
(25)
(23)
57
(12)
(14)
26
Lamictal
617
(5)
(3)
310
(7)
(5)
113
194
(8)
(4)
Seroxat/Paxil
170
(8)
(5)
-
39
131
(10)
(7)
Valtrex
123
(4)
(1)
21
30
72
(9)
(4)
Other
2,519
(6)
(9)
348
(34)
(32)
488
(3)
(4)
1,683
(4)
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
17,269
- 
2 
7,453
(2)
1 
4,072
2 
1 
5,744
- 
5 
 
--------
--------
--------
--------
----------
--------
--------
---------
--------
--------
---------
--------
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pharmaceuticals turnover - three months ended 31 December 2018
 
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
827
38 
34 
520
32 
27 
179
58 
57 
128
36 
35 
Ellipta products
654
36 
33 
413
33 
28 
135
52 
51 
106
33 
31 
   Anoro Ellipta
144
32 
28 
98
27 
21 
29
45 
45 
17
42 
50 
   Arnuity Ellipta
13
11
10 
10 
-
2
(50)
   Incruse Ellipta
87
43 
38 
60
46 
39 
20
33 
33 
7
40 
40 
   Relvar/Breo Ellipta
333
13 
186
(2)
71
31 
28 
76
25 
26 
   Trelegy Ellipta
77
>100 
>100 
58
>100 
>100 
15
>100 
>100 
4
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
173
43 
38 
107
29 
23 
44
83 
79 
22
57 
57 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
1,276
10 
6 
786
10 
3 
317
9 
7 
173
15 
18 
Dolutegravir products
1,205
14 
766
11 
291
15 
13 
148
28 
29 
   Tivicay
452
14 
10 
281
10 
104
20 
18 
67
24 
28 
   Triumeq
691
429
(6)
182
10 
80
29 
29 
   Juluca
62
>100 
>100 
56
>100 
>100 
5
1
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
30
(29)
(31)
4
(25)
11
(35)
(35)
15
(29)
(29)
Selzentry
31
(3)
16
(13)
9
(10)
(10)
6
50 
50 
Other
10
(63)
(52)
-
6
(50)
(50)
4
(56)
(33)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
136
40 
34 
121
39 
31 
10
43 
43 
5
67 
>100 
Benlysta
138
42 
34 
121
39 
31 
10
43 
43 
7
>100 
>100 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
2,571
(4)
(5)
692
(17)
(22)
604
(3)
(4)
1,275
4 
6 
Established Respiratory
1,164
(10)
(12)
503
(18)
(23)
236
(12)
(13)
425
    Seretide/Advair
647
(18)
(20)
299
(27)
(31)
150
(18)
(20)
198
    Flixotide/Flovent
166
94
(2)
26
(4)
46
    Ventolin
215
(1)
110
(1)
(6)
36
(3)
69
    Avamys/Veramyst
73
12 
12 
-
17
56
17 
17 
    Other Respiratory
63
(5)
(5)
-
7
17 
33 
56
(2)
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
115
(1)
1
(80)
(80)
43
71
Augmentin
146
-
49
97
Avodart
149
(1)
3
(67)
60
(6)
(8)
86
Imigran/Imitrex
40
11 
19
27 
27 
14
(7)
(13)
7
17 
17 
Lamictal
159
(5)
(8)
83
(2)
(9)
30
15 
15 
46
(19)
(18)
Seroxat/Paxil
46
(2)
(4)
-
10
36
(3)
(5)
Valtrex
33
7
75 
50 
7
17 
17 
19
(10)
(5)
Other
719
76
(33)
(34)
155
488
11 
13 
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
4,810
6 
4 
2,119
4 
(1)
1,110
7 
6 
1,581
7 
9 
 
--------
--------
--------
--------
----------
--------
--------
---------
--------
--------
---------
--------
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pharmaceuticals turnover - nine months ended 30 September 2018
 
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
1,785
34 
40 
1,066
26 
33 
430
54 
53 
289
42 
50 
Ellipta products
1,395
26 
31 
832
20 
27 
322
38 
37 
241
34 
42 
   Anoro Ellipta
332
42 
48 
220
40 
48 
72
47 
45 
40
48 
56 
   Arnuity Ellipta
31
35 
43 
28
27 
32 
-
3
>100 
>100 
   Incruse Ellipta
197
41 
46 
126
35 
43 
54
50 
50 
17
55 
64 
   Relvar/Breo Ellipta
756
11 
395
(6)
(1)
182
23 
22 
179
27 
33 
   Trelegy Ellipta
79
63
14
2
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
390
75 
81 
234
53 
61 
108
>100 
>100 
48
100 
>100 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
3,446
8 
12 
2,127
7 
13 
877
7 
6 
442
14 
21 
Dolutegravir products
3,215
14 
19 
2,064
10 
16 
800
20 
19 
351
29 
37 
   Tivicay
1,187
18 
23 
755
13 
19 
273
20 
18 
159
43 
56 
   Triumeq
1,957
12 
1,241
524
19 
18 
192
19 
24 
   Juluca
71
68
3
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
87
(54)
(52)
3
(87)
(83)
33
(66)
(66)
51
(28)
(23)
Selzentry
84
(14)
(10)
42
(16)
(10)
26
(19)
(19)
16
Other
60
(35)
(37)
18
(53)
(53)
18
(28)
(32)
24
(17)
(17)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
336
20 
26 
299
19 
25 
26
30 
30 
11
37 
50 
Benlysta
335
21 
27 
299
19 
25 
27
35 
30 
9
29 
71 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
6,892
(13)
(9)
1,842
(25)
(21)
1,629
(11)
(12)
3,421
(6)
-
Established Respiratory
3,152
(16)
(13)
1,279
(25)
(21)
688
(14)
(15)
1,185
(6)
(1)
    Seretide/Advair
1,775
(24)
(21)
798
(34)
(30)
449
(19)
(20)
528
(10)
(5)
    Flixotide/Flovent
429
(1)
239
67
(3)
(3)
123
(8)
(2)
    Ventolin
522
(5)
242
(10)
(5)
94
(2)
(2)
186
(1)
    Avamys/Veramyst
227
-
57
(3)
(5)
170
15 
    Other Respiratory
199
(10)
(8)
-
21
(10)
178
(11)
(7)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
320
(6)
(1)
2
118
(3)
(4)
200
(7)
Augmentin
424
(5)
-
132
(3)
(4)
292
(5)
Avodart
423
(9)
(6)
9
(25)
(8)
180
(23)
(24)
234
12 
Imigran/Imitrex
101
(23)
(23)
39
(37)
(35)
43
(14)
(14)
19
(5)
(5)
Lamictal
458
(5)
(1)
227
(8)
(3)
83
148
(4)
Seroxat/Paxil
124
(9)
(6)
-
29
95
(12)
(7)
Valtrex
90
(7)
(3)
14
(12)
(6)
23
53
(9)
(3)
Other
1,800
(13)
(9)
272
(34)
(31)
333
(6)
(7)
1,195
(8)
(3)
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
12,459
(2)
2 
5,334
(4)
2 
2,962
1 
(1)
4,163
(2)
4 
 
--------
--------
--------
--------
----------
--------
--------
---------
--------
--------
---------
--------
 
 
 
 
 
 
 
 
 
 
 
 
Pharmaceuticals turnover - three months ended 30 September 2018
 
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
645
39 
40 
395
36 
37 
151
51 
50 
99
34 
39 
Ellipta products
500
34 
35 
308
34 
36 
110
37 
36 
82
28 
33 
   Anoro Ellipta
115
34 
34 
77
33 
34 
24
33 
33 
14
40 
30 
   Arnuity Ellipta
10
43 
43 
9
50 
50 
-
1
   Incruse Ellipta
75
34 
38 
51
31 
33 
18
38 
38 
6
50 
75 
   Relvar/Breo Ellipta
258
15 
16 
139
11 
59
20 
20 
60
22 
24 
   Trelegy Ellipta
42
32
9
1
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
145
59 
62 
87
43 
44 
41
>100 
>100 
17
70 
80 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
1,209
11 
12 
754
11 
12 
290
2 
1 
165
27 
34 
Dolutegravir products
1,138
16 
17 
733
13 
14 
267
12 
11 
138
42 
51 
   Tivicay
432
19 
21 
271
11 
12 
93
16 
15 
68
70 
85 
   Triumeq
669
427
172
70
23 
26 
   Juluca
37
35
2
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
24
(51)
(47)
1
(50)
9
(65)
(65)
14
(33)
(29)
Selzentry
26
(16)
(13)
14
(18)
(18)
8
(27)
(27)
4
33 
67 
Other
21
(30)
(37)
6
(54)
(54)
6
(25)
(37)
9
(11)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
122
28 
29 
108
27 
28 
9
29 
29 
5
67 
67 
Benlysta
121
29 
31 
108
27 
29 
10
43 
29 
3
50 
100 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
2,245
(11)
(9)
636
(18)
(17)
501
(10)
(11)
1,108
(8)
(4)
Established Respiratory
1,021
(11)
(9)
451
(14)
(13)
200
(15)
(15)
370
(5)
(1)
    Seretide/Advair
619
(17)
(15)
309
(20)
(19)
132
(20)
(20)
178
(7)
(2)
    Flixotide/Flovent
117
(6)
(6)
59
(9)
(11)
19
39
(7)
(2)
    Ventolin
172
12 
83
26 
29 
29
(6)
(3)
60
(3)
    Avamys/Veramyst
60
-
15
(7)
45
    Other Respiratory
53
(10)
(10)
-
5
(17)
(33)
48
(8)
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
109
(5)
1
(50)
(50)
40
68
(7)
Augmentin
133
(10)
(5)
-
40
(2)
(2)
93
(13)
(7)
Avodart
144
3
33 
59
(11)
(12)
82
12 
Imigran/Imitrex
33
(13)
(13)
13
(19)
(19)
13
(19)
(19)
7
17 
17 
Lamictal
148
(11)
(10)
74
(14)
(13)
30
11 
11 
44
(19)
(17)
Seroxat/Paxil
42
(9)
(4)
-
9
(10)
33
(8)
(6)
Valtrex
32
(6)
(3)
6
(14)
(14)
8
18
(5)
Other
583
(16)
(14)
88
(36)
(37)
102
(11)
(12)
393
(12)
(8)
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
4,221
1 
3 
1,893
3 
4 
951
1 
- 
1,377
(3)
2 
 
--------
--------
--------
--------
----------
--------
--------
---------
--------
--------
---------
--------
 
 
 
 
 
 
 
Pharmaceuticals turnover - six months ended 30 June 2018
 
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
1,140
32 
39 
671
21 
30 
279
56 
54 
190
46 
55 
Ellipta products
895
22 
29 
524
13 
22 
212
39 
37 
159
37 
47 
   Anoro Ellipta
217
48 
56 
143
44 
56 
48
55 
52 
26
53 
71 
   Arnuity Ellipta
21
31 
44 
19
19 
25 
-
2
>100 
>100 
   Incruse Ellipta
122
45 
52 
75
39 
50 
36
57 
57 
11
57 
57 
   Relvar/Breo Ellipta
498
256
(13)
(6)
123
24 
23 
119
29 
37 
   Trelegy Ellipta
37
31
5
1
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
245
86 
95 
147
60 
73 
67
>100 
>100 
31
>100 
>100 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
2,237
7 
12 
1,373
5 
14 
587
9 
8 
277
7 
14 
Dolutegravir products
2,077
14 
20 
1,331
17 
533
24 
22 
213
21 
30 
   Tivicay
755
18 
25 
484
14 
24 
180
22 
20 
91
28 
39 
   Triumeq
1,288
14 
814
10 
352
25 
23 
122
16 
23 
   Juluca
34
33
1
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
63
(56)
(54)
2
(90)
(90)
24
(66)
(66)
37
(26)
(20)
Selzentry
58
(13)
(9)
28
(15)
(6)
18
(14)
(14)
12
(8)
(8)
Other
39
(37)
(37)
12
(52)
(56)
12
(29)
(29)
15
(25)
(20)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
214
16 
24 
191
14 
23 
17
31 
31 
6
20 
40 
Benlysta
214
16 
25 
191
15 
23 
17
31 
31 
6
20 
60 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
4,647
(14)
(10)
1,206
(28)
(23)
1,128
(11)
(12)
2,313
(5) 
Established Respiratory
2,131
(19)
(14)
828
(30)
(24)
488
(13)
(14)
815
(7) 
(1)
    Seretide/Advair
1,156
(28)
(24)
489
(40)
(35)
317
(18)
(19)
350
(12)
(7)
    Flixotide/Flovent
312
180
16 
48
(6)
(6)
84
(8)
(1)
    Ventolin
350
(11)
(5)
159
(22)
(16)
65
(2)
126
10 
    Avamys/Veramyst
167
12 
-
42
(5)
(5)
125
11 
18 
    Other Respiratory
146
(10)
(7)
-
16
130
(13)
(9)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
211
(6)
(1)
1
78
(5)
(6)
132
(7)
Augmentin
291
(2)
-
92
(3)
(5)
199
(1)
Avodart
279
(13)
(10)
6
(33)
(22)
121
(28)
(28)
152
12 
Imigran/Imitrex
68
(28)
(27)
26
(43)
(41)
30
(12)
(12)
12
(14)
(14)
Lamictal
310
(2)
153
(5)
53
(2)
(4)
104
10 
Seroxat/Paxil
82
(10)
(7)
-
20
62
(14)
(8)
Valtrex
58
(8)
(3)
8
(11)
15
35
(10)
(5)
Other
1,217
(11)
(7)
184
(33)
(28)
231
(4)
(5)
802
(7) 
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
8,238
(4) 
1 
3,441
(7)
- 
2,011
- 
(1) 
2,786
(2) 
5 
 
--------
--------
--------
--------
----------
--------
--------
---------
--------
--------
---------
--------
 
 
 
 
 
 
 
 
 
Pharmaceuticals turnover - three months ended 30 June 2018
 
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
650
31 
37 
405
21 
28 
145
53 
53 
100
47 
59 
Ellipta products
509
20 
26 
317
12 
18 
109
36 
36 
83
38 
50 
   Anoro Ellipta
120
41 
48 
83
41 
47 
24
41 
35 
13
44 
78 
   Arnuity Ellipta
10
25 
38 
9
13 
13 
-
1
-
   Incruse Ellipta
74
48 
54 
48
41 
50 
20
54 
54 
6
100 
100 
   Relvar/Breo Ellipta
279
(1)
156
(15)
(10)
61
22 
24 
62
29 
35 
   Trelegy Ellipta
26
-
-
21
-
-
4
-
-
1
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
141
93 
>100 
88
76 
86 
36
>100 
>100 
17
>100 
>100 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
1,189
7 
11 
744
7 
13 
288
3 
4 
157
11 
16 
Dolutegravir products
1,113
13 
18 
727
10 
16 
263
16 
17 
123
24 
31 
   Tivicay
407
20 
25 
256
15 
21 
92
18 
19 
59
51 
62 
   Triumeq
682
448
170
15 
16 
64
12 
   Juluca
24
-
-
23
-
-
1
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
26
(59)
(56)
(1)
>(100)
>(100)
10
(69)
(69)
17
(29)
(21)
Selzentry
29
-
-
13
-
8
9
(18)
(18)
7
40 
20 
Other
21
(43)
(46)
5
(55)
(73)
6
(45)
(45)
10
(31)
(23)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
114
23 
29 
102
23 
30 
9
29 
29 
3
-
-
Benlysta
114
23 
29 
102
23 
29 
8
14 
29 
4
33 
33 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
2,276
(14)
(11)
620
(28)
(25)
542
(11)
(11)
1,114
(5)
-
Established Respiratory
1,046
(20)
(17)
432
(32)
(29)
234
(12)
(12)
380
(6)
(2)
    Seretide/Advair
590
(30)
(28)
260
(45)
(43)
151
(17)
(17)
179
(6)
(2)
    Flixotide/Flovent
154
12 
94
21 
27 
21
(9)
(4)
39
(11)
(7)
    Ventolin
170
(5)
-
78
(9)
(6)
31
61
(3)
    Avamys/Veramyst
69
11
-
22
(4)
47
14 
    Other Respiratory
63
(6)
(10)
-
9
29 
54
(14)
(17)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
104
(6)
(2)
-
39
(5)
(5)
65
(7)
Augmentin
127
(10)
(5)
-
37
(12)
(12)
90
(9)
(2)
Avodart
138
(14)
(11)
3
(25)
(25)
57
(32)
(32)
78
14 
Imigran/Imitrex
36
(12)
(12)
14
(13)
(12)
15
(17)
(17)
7
Lamictal
164
10 
13
82
14 
19
27
(4)
(7)
55
12 
16 
Seroxat/Paxil
42
(9)
(9)
-
10
(10)
32
(11)
(8)
Valtrex
30
(6)
(3)
5
8
17
(11)
(5)
Other
589
(12)
(7)
84
(35)
(34)
115
390
(8)
(2)
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
4,229
(3) 
1 
1,871
(5)
- 
984
(1) 
(1) 
1,374
(1) 
4 
 
--------
--------
--------
--------
----------
--------
--------
---------
--------
--------
---------
--------
 
 
 
 
 
 
 
Pharmaceuticals turnover - three months ended 31 March 2018
 
 
 
Total
US
Europe
International
 
-------------------------------------
-------------------------------------
-------------------------------------
-------------------------------------
 
 
Growth
 
Growth
 
Growth
 
Growth
 
 
-----------------------
 
-----------------------
 
-----------------------
 
-----------------------
 
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Respiratory
490
34 
42 
266
20 
34 
134
60 
56 
90
45 
52 
Ellipta products
386
25 
34 
207
16 
29 
103
41 
38 
76
36 
43 
   Anoro Ellipta
97
56 
68 
60
50 
67 
24
71 
71 
13
62 
62 
   Arnuity Ellipta
11
37 
50 
10
25 
37 
-
1
>100 
>100 
   Incruse Ellipta
48
41 
50 
27
35 
50 
16
60 
60 
5
25 
25 
   Relvar/Breo Ellipta
219
14 
100
(10)
62
27 
22 
57
30 
39 
   Trelegy Ellipta
11
10
1
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Nucala/Mepolizumab
104
76 
86 
59
40 
57 
31
>100 
>100 
14
>100 
>100 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
1,048
6 
14 
629
3 
15 
299
15 
12 
120
3 
11 
Dolutegravir products
964
15 
23 
604
20 
270
32 
28 
90
17 
27 
   Tivicay
348
15 
24 
228
14 
27 
88
26 
21 
32
13 
   Triumeq
606
12 
20 
366
13 
182
36 
32 
58
29 
38 
   Juluca
10
10
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Epzicom/Kivexa
37
(53)
(52)
3
(79)
(79)
14
(64)
(64)
20
(23)
(19)
Selzentry
29
(24)
(16)
15
(25)
(15)
9
(10)
(10)
5
(37)
(25)
Other
18
(30)
(26)
7
(50)
(43)
6
5
(14)
(14)
 
 
 
 
 
 
 
 
 
 
 
 
 
Immuno-inflammation
100
9 
20 
89
6 
17 
8
33 
33 
3
50 
100 
Benlysta
100
10 
21 
89
18 
9
50 
33 
2
>100 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
-
-
-
-
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Established
Pharmaceuticals
2,371
(14) 
(8) 
586
(28) 
(21) 
586
(11)
(13)
1,199
(5) 
Established Respiratory
1,085
(18) 
(12) 
396
(27) 
(20) 
254
(15)
(17)
435
(8) 
    Seretide/Advair
566
(25)
(20)
229
(32)
(25)
166
(19)
(21)
171
(17)
(12)
    Flixotide/Flovent
158
(4)
86
(3)
27
(4)
(7)
45
(4)
    Ventolin
180
(16)
(9)
81
(31)
(23)
34
(3)
(6)
65
15 
    Avamys/Veramyst
98
13 
-
20
(5)
(10)
78
11 
20 
    Other Respiratory
83
(13)
(4)
-
7
(12)
76
(12)
(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatology
107
(5)
1
>100 
>100 
39
(5)
(7)
67
(7)
Augmentin
164
12 
-
55
109
19 
Avodart
141
(12)
(9)
3
(40)
(20)
64
(23)
(24)
74
10 
Imigran/Imitrex
32
(40)
(38)
12
(60)
(57)
15
(6)
(6)
5
(29)
(29)
Lamictal
146
(12)
(5)
71
(20)
(11)
26
49
(4)
Seroxat/Paxil
40
(11)
(4)
-
10
11 
11 
30
(17)
(8)
Valtrex
28
(10)
(3)
3
(25)
7
18
(10)
(5)
Other
628
(11)
(6)
100
(31)
(24)
116
(8)
(12)
412
(6) 
 
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
--------
Pharmaceuticals
4,009
(4) 
2 
1,570
(9)
1 
1,027
2 
(1) 
1,412
(3) 
5 
 
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Pro forma IFRS 16 impact on 2018 total and adjusted income statement
 
As stated above, GSK has implemented IFRS 16 by applying the modified retrospective approach with an effective transition date of 1 January 2019. As a result, the reported results for 2018 on both a Total and Adjusted basis are not required to be restated for the impact of the adoption of IFRS 16. The information in the tables below is therefore presented on a pro forma basis as indicative of the impact that IFRS 16 would have had on the Total and Adjusted income statements of the Group in 2018.
 
 
 
Total income statement
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter 1
 
Quarter 2
 
6 months
 
Quarter 3
 
9 months
 
Quarter 4
 
Full Year
 
£m
 
£m
 
£m
 
£m
 
£m
 
£m
 
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
7,222 
 
7,310 
 
14,532 
 
8,092 
 
22,624 
 
8,197 
 
30,821 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
(2,390)
 
(2,311)
 
(4,701)
 
(2,637)
 
(7,338)
 
(2,906)
 
(10,244)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
4,832 
 
4,999 
 
9,831 
 
5,455 
 
15,286 
 
5,291 
 
20,577 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administration
 
(2,304)
 
 
(2,452)
 
 
(4,756)
 
 
(2,524)
 
 
(7,280)
 
 
(2,617)
 
 
(9,897)
Research and development
 
(903)
 
 
(924)
 
 
(1,827)
 
 
(988)
 
 
(2,815)
 
 
(1,075)
 
 
(3,890)
Royalty income
53 
 
73 
 
126 
 
94 
 
220 
 
79 
 
299 
Other operating income/(expense)
 
(429)
 
 
(912)
 
 
(1,341)
 
 
(125)
 
 
(1,466)
 
 
(122)