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GlaxoSmithKline Is Global Leader in Consumer Healthcare Business

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Consumer Healthcare business performance in 3Q17

In 3Q17, GlaxoSmithKline (GSK) reported revenues close to 2.0 billion pounds from the sale of its consumer healthcare products, which is year-over-year (or YoY) growth of 5% on a reported basis and 2% on a constant exchange rate (or CER). The growth was attributed to robust uptake of power brands in the company’s pain and oral segments. However, the worldwide slowdown in demand for key categories, implementation of the Goods & Service Tax (or GST) tax in India on July 1, 2017, and the divestment of its Nigerian beverages business had an adverse impact on sales of GlaxoSmithKline’s consumer healthcare products.

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GlaxoSmithKline witnessed sales worth 429 million pounds for its consumer healthcare franchise in the US market in 3Q17, which is YoY growth of 1% on a reported basis but a drop of 1% on a CER basis. GlaxoSmithKline earned revenues close to 612 million pounds from the sale of consumer healthcare products in Europe in 3Q17, which is a YoY rise of 7% on a reported basis and of 3% on a CER basis. Further, in 3Q17, the company witnessed consumer healthcare sales close to 923 million pounds in international markets, which is YoY growth of 6% on a reported basis and 4% on a CER basis. Notably, GlaxoSmithKline makes up about 1.4% of the Vanguard International High Dividend Yield ETF’s (VYMI) total portfolio holdings.

The above diagram lists the key characteristics of GlaxoSmithKline’s consumer healthcare business. The company has managed to secure market share ahead of other major consumer healthcare players such as Pfizer (PFE), Sanofi (SNY), and Johnson & Johnson (JNJ).

Consumer Healthcare business performance in the first nine months of 2017

GlaxoSmithKline’s consumer healthcare franchise earned revenues close to 5.9 billion pounds in the first nine months of 2017, which is 10% YoY growth on a reported basis and 2% growth on a CER basis. Revenues from the US market were close to 1.4 billion pounds, a YoY rise of 7% on a reported basis and a decline of 1% on a CER basis. The company also witnessed consumer healthcare franchise sales of 1.8 billion pounds in the European market, which is YoY growth of 11% on a reported basis and 3% YoY growth on a CER basis. GlaxoSmithKline also earned revenues close to 2.7 billion pounds from the sale of its consumer healthcare products in international markets in the first nine months of 2017, which is a YoY rise of 11% on a reported basis and 2% on a CER basis.

In the next article, we’ll discuss the dynamics of the consumer healthcare industry in greater detail.

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