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Assessing GlaxoSmithKline’s Quarterly Revenues

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GlaxoSmithKline’s revenue

GlaxoSmithKline (GSK) reported a 4% rise in operating revenue to ~7.2 billion British pounds in Q1 2018 compared to ~7.3 billion pounds in Q1 2017.

The rise was more than offset by the 6% negative impact of foreign exchange, which resulted in an overall revenue fall of 2% year-over-year in Q1 2018.

The chart above compares GlaxoSmithKline’s quarterly revenues since Q1 2017.

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Q1 2018 revenue

GlaxoSmithKline has segregated its product portfolio into three segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. All three segments reported rises in their operating revenues in Q1 2018, but these rises were more than offset by the negative impact of foreign exchange compared to Q1 2017.

The Pharmaceuticals segment reported a 2% rise in operating revenue to 4.0 billion pounds offset by the 6% negative impact of foreign exchange in Q1 2018. The rise in the segment’s operating revenue was driven by strong sales of its new respiratory products, including Trelegy, and a double-digit rise in the sales of its HIV products, including Triumeq, Tivicay, and Juluca, offset by lower sales of other respiratory products and established pharmaceutical products.

The Vaccines segment reported a 13% rise in operating revenue to 1.2 billion pounds offset by the 6% negative impact of foreign exchange in Q1 2018. The rise in its operating revenue was driven by strong sales of its shingles vaccines, including Shingrix and established vaccines, offset by lower sales of its meningitis and influenza vaccines.

The Consumer Healthcare segment reported a 2% rise in operating revenue to ~2.0 billion pounds offset by the 5% negative impact of foreign exchange in Q1 2018. The rise in its operating revenue was driven by strong sales of its oral health and wellness products offset by lower sales of its nutrition and skin health products.

GlaxoSmithKline has announced the buyout of Novartis’s (NVS) stake in their consumer healthcare joint venture. This buyout will increase GSK’s cash flows and assist the company in its future capital allocation.

The First Trust Value Line Dividend ETF (FVD) holds 0.5% of its total investments in GlaxoSmithKline, 0.5% in Novartis, 0.5% in Pfizer (PFE), and 0.5% in Johnson & Johnson (JNJ).

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