GlaxoSmithKline reports drop in pre-tax profit

Link: IFRS update – a management briefing

Higher provisions for legal matters included a charge of £141m at the end of 2004, reflecting a change in the company’s accounting method of provisions for potential claims against GSK.

Earnings per share dropped slightly to 75 pence on sales down 5% to £20.36bn

JP Garnier, chief executive officer, was however upbeat for the future: ‘These results confirm the success with which GSK has navigated a difficult year, absorbing over £1.5bn of lost sales to generics and still managing to grow the business. The continuing success of our key products means we can now look forward to a good performance in 2005.’

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