FTSE-100 listed pharmaceutical giant GlaxoSmithKline (GSK) has posted a 1.0 per cent decline in its annual turnover for the year ending December 31st, according to a financial update issued by the company on Wednesday.
Turnover contracted to £26,431m with the adverse impact to performance in 2012 being blamed on weaker than expected sales from GSK's European business.
Group turnover by geographical regions contracted 7.0% to £7,320m at constant exchange rates, while sales slid 4.0% to £8,446m in the US.
In Japan, GSK's sales also dropped by 5.0% to £2,225m. These reductions in sales were partially offset by growth in the Emerging Markets division.
GSK reported that total sales in emerging markets currently account for 26% of its business and the group reported sales there had risen by 10% over the year.
The group delivered core earnings per share of 112.7p in 2012 and cash inflow from operating activities of £7.0bn before legal settlements.
Pharmaceuticals turnover fell 2.0%, which GSK said reflected increased pressure from austerity measures in Europe.
Vaccines turnover declined 2.0%, reflecting the impact of lower sales of Cervarix in Japan - £132m worth of Cervarix was sold in 2012, compared to £344m in 2011 following the completion of the 2011 HPV vaccination catch-up programme.
GSK reported that "significant progress" had been made in its research and development department, stating that the group had six new products under regulatory review. It said that over the next 15 years GSK would have the potential to launch around 15 new products globally.
Underlying group revenue rose 3.0 per cent to £503m in the three month period to December 30th at Daily Mail and General Trust, an interim management statement for the company has disclosed.
The company reported underlying growth of 8% from its business-to-business businesses and 4% underlying growth at its Risk Management Solutions business.
Underlying revenue declined by 4% at Associated Newspapers - since renamed as dmg media- and the improved profit margin was described as having been driven by cost efficiencies.
Newspaper advertising declined in the quarter while digital advertising increased, reflecting a wider trend seen in the media industry.
In the case of the former revenues were down by 9% in the quarter but improved as the quarter progressed, with December 2012 advertising stable year-on-year.
Digital advertising was up 18% and the group reported that it had put up the price of its weekday print newspaper on February 4th. The price of the Monday-to-Friday published Daily Mail was increased to 60p from 55p previously.
Despite increased investment in digital products, dmg media's profit margin for the quarter increased year-on-year due to the rationalisation of printing facilities that took place during 2012. The group reported that headcount had reduced by 3% to 3,179 individuals.