GlaxoSmithKline PLC Price Rallies On Dividend Lift

GlaxoSmithKline (LON: GSK) reveals sales up 1% and earnings up 4%.

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The shares of GlaxoSmithKline (LSE: GSK) (NYSE: GSK.US) soared 45p to 1,600p during afternoon trading after the pharmaceutical giant today announced its full-year results.  

The FTSE 100 member, which supplies 900 million vaccine doses to 170 countries and employs nearly 100,000 people, reported a 1% rise in turnover to £26.4bn.

Glaxo also boasted core earnings per share stepping-up 4% to 112.2p, which the group said was “in line with financial guidance”.  

The statement also highlighted operating profits flat at £8bn.

The company claimed “strong” cash generation, with full-year net cash flow up 5% to £7.3bn. The dividend was lifted 5% to 78p per share.

Sir Andrew Witty, Glaxo’s chief executive, said:

“GSK’s performance in 2013 represented further strong delivery for the Group.  We met our guidance with core EPS growth of 4% and sales growth of 1% (+3% ex-divestments) and returned £5.2 billion to shareholders via further growth in the dividend and our continuing share buy-back programme.” 

“We also delivered the most productive period of R&D output in the Company’s history and led the sector for new medicine approvals.”

Sir Andrew added that GlaxoSmithKline’s financial success provided the firm with the flexibility to “fund organic investment and restructuring programmes as well as our ongoing commitment to a growing dividend.

Of course, whether today’s full-year results as well as the wider prospects for the healthcare sector both combine to make GlaxoSmithKline a ‘buy’ right now is something only you can decide.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

> Douglas does not own any share mentioned in this article. The Motley Fool has recommended shares in GlaxoSmithKline.

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