GlaxoSmithKline (GSK) says it has trebled year-end profits to £5.3bn for 2011, assisted by massive reductions in overheads.
The figures were boosted by profits of £1.25bn in the final three months of the year, compared to a loss of £633m in the same period last year.
GSK's revenue declined three per cent even as sales increased by four per cent but the company's decision to slash sales and administration costs by a third to to £8.8bn has helped the bottom line.
Restructuring costs of £150m pounds were roughly half the previous year's figures.
Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers commented:
“The results have materialised at the lower end of expectations. Tough conditions in the US and falling sales in Europe look to have impacted. Furthermore, pricing pressure has been seen across a number of the group’s markets, while the company’s R&D efforts are yet to yield what the group itself sees as an acceptable return.
