Pound weakness to boost Glaxo´s second quarter sales and EPS

The pound´s depreciation against the US dollar and Japanese yen during the second quarter of the year were set to significantly boost GlaxoSmithKline´s reported sales and profits in sterling terms, the company said.

During the quarter ended on 30 June 2016 the pound had traded at an average rate of 1.41 versus the greenback, 1.28 against the euro and 162 in comparison to the yen.

That, the company said, would boost its second quarter revenues when reported in sterling by between 6.0% to 7.0% with an even greater positive impact on the firm´s earnings per share likely.

At the time of its first quarter results, the company had said that: "if exchange rates were to hold at the March closing rates (£1/$1.44, £1/€1.26 and £1/Yen 162) for the rest of 2016, the estimated positive impact on 2016 Sterling turnover growth would be around 5% and if exchange losses were recognised at the same level as in 2015, the estimated positive impact on 2016 Sterling core EPS growth would be around 8%.”

As of 16:19BST shares in the drug outfit were trading up by 0.51% to 1,661p.