GlaxoSmithKline (GSK) has reported robust results ahead of the planned disposal of its consumer healthcare division.
The pharmaceutical giant is basking in a nine per cent rise in adjusted operating profits, with earnings of £8.8bn for the full-year.
It has been boosted by significant growth across its pharmaceutical, vaccines and consumer health care divisions, enjoying full-year sales of £34bn, a five per cent increase on last year’s total.
Pharmaceuticals have provided £17.7bn of the GSK’s revenu, while its new and specialty medicines division offered a further £10bn boost.
It has also raised £6.8bn from vaccines, and £1.4bn from Covid-19 solutions, such as Xevudy which generated £958m in sales.
GSK has now declared a fourth quarter dividend of 23p per share, bringing the total for the year to 80p.
The group also confirmed three major product approvals over the course of 2021. Alongside Xevudy, this included Apretude, a HIV long-acting medicine for prevention and Jemperli for endometrial cancer.
The healthcare giant currently has 43 medicines and 21 vaccines in its development pipeline.
Meanwhile, GSK remains on track to de-merge its consumer healthcare business by the middle of 2022, with the company looking to create a new board with the appointment of a chair designate.
In recent months, GSK fended off a £50bn takeover bid for the consumer business from Unilever, with the group committing to its spin-off plans.
In terms of cost discipline, the total group’s operating margin is now estimated at 18.2 per cent, with adjusted earnings per share of 113.2p.
It has also reported £8bn in net cash flow from operations over the course of the past 12-months.
For its 2022 guidance, GSK expects its biopharma business to deliver growth in sales between five and seven per cent with an adjusted operating profit between 12 and 14 per cent.
Laura Hoy, equity analyst at Hargreaves Lansdown said: “Things are ticking over nicely at GlaxoSmithKline as the group gears up to separate its consumer healthcare business later this year. This arm of the business garnered a lot of attention when Unilever expressed an interest in buying it, but there’s been no word of another potential suitor.”
GSK has promised a comprehensive outlook and strategy announcement on 28 February.