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How GSK’s Consumer Healthcare Segment Fared in Q1 2018

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Consumer Healthcare

GlaxoSmithKline’s (GSK) Consumer Healthcare segment includes various products for oral health, wellness, nutrition, and skin health. The Consumer Healthcare segment reported a 3% fall in its YoY (year-over-year) revenue to ~2.0 billion pounds in Q1 2018 compared to Q1 2017.

The fall included a 5% fall in revenue due to the negative impact of foreign exchange, partially offset by a 2% rise in operating revenue in the quarter.

The chart above compares the Consumer Healthcare segment’s revenues since Q1 2017. GlaxoSmithKline announced its buyout of Novartis’s (NVS) stake in their consumer healthcare joint venture in Q1 2018.

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Q1 2018 performance

Oral health products reported revenue of 638 million British pounds in Q1 2018, a 2% rise compared to Q1 2017. This rise included a rise of 7% in operating revenue offset by a 2% negative impact of foreign exchange in Q1 2018.

Nutrition products reported revenue of 168 million pounds in Q1 2018, an 8% fall compared to Q1 2017. This fall included a 1% fall in operating revenue and a 7% negative impact of foreign exchange in Q1 2018.

Skin health products reported revenue of 152 million pounds in Q1 2018, a 7% fall compared to Q1 2017. This fall included a 2% fall in operating revenue and a 5% negative impact of foreign exchange in Q1 2018.

Wellness products reported revenue of 1.0 billion pounds in Q1 2018, a 5% fall compared to Q1 2017. This fall included flat operating revenue offset by a 5% negative impact of foreign exchange in Q1 2018.

Geographical performance

The US markets reported revenue of ~459 million pounds in Q1 2018, a ~13% fall in revenue compared to Q1 2017. This performance included flat operating revenue offset by a ~6.0% fall in revenue due to the negative impact of foreign exchange.

The European markets reported revenue of ~625 million pounds in Q1 2018, a 5% rise in revenue compared to Q1 2017. This performance included a 2% rise in operating revenue and a 3% rise in revenue due to the positive impact of foreign exchange.

The international markets reported revenue of ~891 million pounds in Q1 2018, a ~3% fall compared to Q1 2017. This performance included a 5% rise in operating revenue offset by an 8% fall in revenue due to the negative impact of foreign exchange.

The Vanguard FTSE All-World ex-US ETF (VEU) holds 0.4% of its total investments in GlaxoSmithKline, 0.7% in Novartis, 0.4% in Sanofi (SNY), and 0.1% in Teva Pharmaceutical (TEVA).

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