GlaxoSmithKline looked to put worries about its future dividend to bed as it reported 3% growth in sales and 4% in earnings per share at constant currency rates.
Turnover of £30.2bn in 2017 were up 8% at actual exchange rates, with growth coming across its three business divisions. Pharmaceuticals was up 7% £17.3bn at AER, vaccines up 12% to £5.2bn and consumer healthcare up 8% to £7.8.

Total earnings per share increased 67% to 31.4p even after accounting charges of £1.6bn from recent US tax reforms, while adjusted EPS of 111.8p was up 11% AER, in line with management's guidance.

With the business throwing off free cash flow of £3.4bn in the year, a fourth quarter dividend of 23p made for 80p for the year.

Investors and analysts feared future dividend payments might be in the firing line as the pharmaceuticals giant looks to fund further growth, especially as new CEO Emma Walmsley, who was promoted in April after running the consumer division, might be tempted by acquisition opportunities as US rivals Pfizer and Merck look to exit this area. She put this to bed, for 2018 at least, and said the board continued to expect 80p dividend for 2018.

For 2018, EPS guidance was given, as last year, bearing in mind the uncertainty over the timing and impact of possible generic competition to GSK's Advair asthma drug in the US. In the event of no substitutable generic competitor, Walmsley guided to adjusted EPS growth of 4-7% as CER, falling to potentially flat-to-3% growth if a generic competitor in launched mid-year. Such a launch is expected to see full year 2018 US Advair sales of around £750m.

Both scenarios reflect the benefit of US tax reform with expected 2018 effective tax rate on adjusted profits of 19-20%.

"Looking ahead, in 2018 we could see a potential generic version of Advair in the US and our 2018 guidance reflects this," Walmsley said. "With the sales momentum we anticipate from new and recent launches and focused improvements in operating performance we are increasingly confident in our ability to deliver mid to high single digit growth in adjusted EPS CAGR."

In other her comments alongside results, Walmsley highlighted GSK's focus three new drug launches: triple-drug inhaler Trelegy Ellipta to treat COPD; Juluca, the first two-drug, once-daily, pill for HIV; and Shingrix, a new vaccine to prevent shingles.

"Improving our Pharmaceuticals business remains our main priority and we are strengthening our pipeline with a focus on priority assets in two current therapy areas, Respiratory and HIV, and two potential areas, Oncology and Immuno-inflammation," she said.

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