GlaxoSmithKline PLC said net income ballooned in the first quarter of the year thanks to strong sales growth of the company's newer drugs, a boost from a weak pound, and a favorable year-earlier comparison.
The U.K. drug maker said net profit nearly quadrupled to 1.05 billion pounds in the first three months of the year, compared with GBP282 million a year ago, when earnings were hurt by a GBP489 million charge related to the re-evaluation of various joint ventures.
Continue Reading Below
Adjusted operating profit, a measure that strips out one-time items, rose 30% to GBP1.98 billion, while revenue climbed 19% to GBP7.38 billion.
Glaxo, which reports in sterling but makes most of its revenue in other currencies, is benefiting from the weakness of the pound, which has fallen some 15% against the U.S. dollar and 10% against the euro since the U.K. voted to leave the European Union on June 23 last year.
Stripping out the currency effect, adjusted operating profit rose 9% and revenue climbed 5%.
Write to Denise Roland at Denise.Roland@wsj.com
(END) Dow Jones Newswires
April 26, 2017 07:59 ET (11:59 GMT)