Consumer Healthcare product sales category changes
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Issued: 30 March 2020, London, UK - LSE Announcement
GSK publishes Consumer Healthcare product sales category reporting changes |
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GSK keeps its financial reporting under regular review to ensure that it remains current and in line with both the latest regulatory requirements and developing best practice within the Pharmaceutical industry.
Consumer Healthcare product sales categories updated Following the closing of the transaction that combined the assets of the legacy GSK Consumer Healthcare business with Pfizer consumer healthcare on 31 July 2019, GSK completed a review of the segment sales disclosures applicable to the new Consumer Healthcare Joint Venture business. A revised and more detailed disclosure of category sales will provide greater transparency to the main drivers of the Consumer Healthcare Joint Venture's performance. Previously reported Nutrition and Skin health categories will no longer be used as a result of GSK's focus in the portfolio on core categories via targeted divestments. Nutrition, Skin health and the category previously called "Wellness" will be replaced by four more specific categories structured around GSK's global power brand 1 portfolio and closely aligned to consumer healthcare industry standard definitions: · Oral health (unchanged) includes the power brands Sensodyne, Parodontax and the Denture care franchise comprising approximately 85% 2 of category sales. GSK leads the therapeutic Oral health segment globally 3 . · Pain relief includes the power brands Voltaren, Panadol and Advil comprising 86% 2 of category sales with an additional 11% of sales from leading regional brands ('local stars'). GSK holds the global #1 position in this category 4 . · Respiratory health includes cold & flu, allergy and cough brands. Combined power brands (Theraflu and Otrivin) and 'local star' brands comprise over 70% 2 of category sales. GSK holds the global #1 position in this category 4 . · Vitamins, minerals and supplements includes power brand Centrum and 'local stars' Caltrate and Emergen-C as well as smaller brands that were previously reported in the Nutrition category. Power brands and 'local stars' comprise over 70% 2 of category sales and GSK holds the global #1 position in this category 4 . · Digestive health and other includes 'local star' Digestive health brands Tums, Nexium and Eno; the OTC Smokers' health franchise; small dermatology brands previously reported in Skin health; and any other products not reported elsewhere. · Brands divested and under review includes those brands that have been divested but remain in the comparative sales disclosures for 2019 and earlier years; previously announced divestments including the sale of the Horlicks and other family nutrition brands in India and certain other markets to Hindustan Unilever Ltd; and brands under review as part of the divestment programme announced at the time of the formation of the joint venture with Pfizer. The revised Consumer Healthcare turnover tables below set out the new format for reporting Consumer Healthcare product sales that will be used beginning with the Q1 2020 Results Announcement and applied to the 2019 reported and pro forma Consumer Healthcare product sales.
An Excel version of this data is available on www.gsk.com . ___________________________________________________________________________
1 GSK Consumer Healthcare has a portfolio of nine global power brands and fifteen leading regional ('local star') brands comprising over 70% 2 of total sales excluding brands divested and under review. 2 Percentages are estimated based on 2019 sales of legacy GSK and Pfizer consumer healthcare brands. 3 GSK analysis based on Nielsen, IRI and Euromonitor data. 4 Nicholas Hall's DB6 Consumer Healthcare database 2018.
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GSK - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com |
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Analyst/Investor enquiries: |
Sarah Elton-Farr |
+44 (0) 20 8047 5194 |
(London) |
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James Dodwell |
+44 (0) 20 8047 2406 |
(London) |
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Danielle Smith |
+44 (0) 20 8047 7562 |
(London) |
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Jeff McLaughlin |
+1 215 751 7002 |
(Philadelphia) |
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Brand names Brand names appearing in italics throughout this document are trademarks of GSK or associated companies or used under licence by the Group.
This Announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006. The information for 2019 and 2018 has been derived from the full Group accounts published in the Annual Report 2019.
CER growth In order to illustrate underlying performance, it is the Group's practice to discuss its results in terms of constant exchange rate (CER) growth. This represents growth calculated as if the exchange rates used to determine the results of overseas companies in Sterling had remained unchanged from those used in the comparative period.
Pro-forma growth The acquisition of the Pfizer consumer healthcare business completed on 31 July 2019 and so GSK's reported results for 2019 include five months of results of the former Pfizer consumer healthcare business from 1 August 2019.
The Group has presented pro-forma growth rates at CER for turnover taking account of this transaction. Pro-forma growth rates are calculated for comparing reported results for the periods from 1 August 2019, calculated applying the exchange rates used in the comparative period, with the results for periods from 1 August 2018 adjusted to include the equivalent results of the former Pfizer consumer healthcare business during 2018, as consolidated (in US$) and included in Pfizer's US GAAP results.
Cautionary statement regarding pro-forma growth rates The pro-forma growth rates at CER in the press release have been provided to illustrate the position in Q3 2019, nine months 2019, Q4 2019 and year-ended 31 December 2019 relative to the position in Q3 2018, nine months 2018, Q4 2018 and year-ended 31 December 2018 as if, for the purposes of the Q3 2018, nine months 2018, Q4 2018 and year-ended 31 December 2018, the acquisition of the Pfizer consumer healthcare business had taken place as at 31 July 2018. Accordingly, two months of results of the former Pfizer consumer healthcare business were included in Q3 2018 and nine months 2018, three months of results of the Pfizer consumer healthcare business were included in Q4 2018 and five months of results of the former Pfizer consumer healthcare business were included in the year-ended 31 December 2018. The results of the former Pfizer consumer healthcare business included for Q3 2018, nine months 2018, Q4 2018 and year-ended 31 December 2018 are as consolidated (in US$) and included in Pfizer's US GAAP results. The results for Q3 2019, nine months 2019, Q4 2019 and the year-ended 31 December 2019 used to calculate the pro-forma growth rates are as reported at CER.
The pro forma growth rates have been provided for illustrative purposes only and, by their nature, address a hypothetical situation and therefore do not represent the Group's actual growth rates. The pro-forma growth rates do not purport to represent what the Group's results of operations would have actually been if the Pfizer acquisition had been completed on the date indicated, nor do they purport to represent the results of operations at any future date. In addition, the pro-forma growth rates do not reflect the effect of anticipated synergies and efficiencies or accounting and reporting differences associated with the acquisition of the Pfizer consumer healthcare business. |
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Registered in England & Wales: No. 3888792 |
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Registered Office: 980 Great West Road Brentford, Middlesex TW8 9GS |
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Revised format for reporting Consumer Healthcare product sales
The revised format for the reporting of Consumer Healthcare product sales applied to the 2019 quarterly and 2018 full year Consumer Healthcare sales is as follows:
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2019 |
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Reported |
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Pro-forma |
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£m |
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Growth |
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Growth |
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Growth |
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£% |
CER% |
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CER% |
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Oral health |
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2,673 |
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7 |
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7 |
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7 |
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Pain relief |
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1,781 |
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24 |
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24 |
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4 |
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Respiratory health |
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1,186 |
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9 |
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8 |
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(2) |
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Vitamins, minerals and supplements |
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611 |
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>100 |
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>100 |
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(3) |
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Digestive health and other |
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1,646 |
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15 |
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13 |
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- |
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7,897 |
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20 |
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20 |
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3 |
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Brands divested and under review |
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1,098 |
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- |
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(1) |
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(4) |
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8,995 |
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17 |
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17 |
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2 |
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Consumer Healthcare turnover - three months ended 31 December 2019
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Q4 2019 |
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Reported |
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Pro-forma |
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£m |
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Growth |
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Growth |
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Growth |
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£% |
CER% |
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CER% |
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Oral health |
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651 |
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4 |
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7 |
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7 |
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Pain relief |
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501 |
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42 |
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45 |
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2 |
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Respiratory health |
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354 |
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21 |
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22 |
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(3) |
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Vitamins, minerals and supplements |
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332 |
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>100 |
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>100 |
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(7) |
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Digestive health and other |
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473 |
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35 |
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38 |
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2 |
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2,311 |
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41 |
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43 |
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1 |
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Brands divested and under review |
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260 |
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(3) |
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- |
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(10) |
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2,571 |
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35 |
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37 |
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- |
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Consumer Healthcare turnover - nine months ended 30 September 2019 |
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9 months 2019 |
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Reported |
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Pro-forma |
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£m |
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Growth |
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Growth |
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Growth |
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£% |
CER% |
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CER% |
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Oral health |
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2,022 |
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8 |
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6 |
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6 |
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Pain relief |
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1,280 |
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18 |
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17 |
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5 |
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Respiratory health |
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832 |
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5 |
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3 |
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(2) |
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Vitamins, minerals and supplements |
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279 |
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>100 |
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>100 |
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2 |
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Digestive health and other |
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1,173 |
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8 |
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5 |
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(1) |
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5,586 |
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14 |
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12 |
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3 |
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Brands divested and under review |
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838 |
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1 |
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(1) |
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(3) |
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6,424 |
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12 |
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10 |
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2 |
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Consumer Healthcare turnover - three months ended 30 September 2019
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Q3 2019 |
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Reported |
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Pro-forma |
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£m |
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Growth |
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Growth |
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Growth |
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£% |
CER% |
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CER% |
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Oral health |
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709 |
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14 |
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10 |
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10 |
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Pain relief |
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526 |
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43 |
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40 |
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6 |
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Respiratory health |
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344 |
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15 |
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12 |
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(1) |
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Vitamins, minerals and supplements |
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224 |
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>100 |
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>100 |
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2 |
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Digestive health and other |
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425 |
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20 |
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15 |
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(3) |
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2,228 |
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33 |
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29 |
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4 |
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Brands divested and under review |
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298 |
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8 |
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3 |
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(3) |
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2,526 |
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30 |
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25 |
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3 |
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Consumer Healthcare turnover - six months ended 30 June 2019 |
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6 months 2019 |
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Reported |
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£m |
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Growth |
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Growth |
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£% |
CER% |
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Oral health |
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1,313 |
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5 |
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5 |
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Pain relief |
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754 |
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5 |
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5 |
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Respiratory health |
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488 |
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(1) |
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(3) |
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Vitamins, minerals and supplements |
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55 |
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2 |
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4 |
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Digestive health and other |
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748 |
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2 |
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1 |
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3,358 |
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3 |
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3 |
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Brands divested and under review |
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540 |
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(2) |
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(3) |
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3,898 |
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2 |
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2 |
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Consumer Healthcare turnover - three months ended 30 June 2019
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Q2 2019 |
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Reported |
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£m |
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Growth |
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Growth |
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£% |
CER% |
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Oral health |
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651 |
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7 |
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5 |
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Pain relief |
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383 |
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11 |
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10 |
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Respiratory health |
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197 |
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4 |
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2 |
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Vitamins, minerals and supplements |
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29 |
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7 |
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11 |
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Digestive health and other |
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398 |
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4 |
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2 |
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1,658 |
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7 |
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5 |
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Brands divested and under review |
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259 |
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(5) |
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(7) |
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1,917 |
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5 |
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4 |
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Consumer Healthcare turnover - three months ended 31 March 2019 |
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3 months 2019 |
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Reported |
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£m |
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Growth |
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Growth |
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£% |
CER% |
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Oral health |
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662 |
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4 |
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4 |
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Pain relief |
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371 |
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(1) |
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- |
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Respiratory health |
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291 |
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(5) |
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(5) |
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Vitamins, minerals and supplements |
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26 |
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(4) |
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(4) |
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Digestive health and other |
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350 |
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- |
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- |
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1,700 |
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- |
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- |
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Brands divested and under review |
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281 |
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- |
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1 |
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1,981 |
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- |
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1 |
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Consumer Healthcare turnover - twelve months ended 31 December 2018
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2018 |
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£m |
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Oral health |
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2,496 |
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Pain relief |
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1,440 |
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Respiratory health |
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1,085 |
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Vitamins, minerals and supplements |
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103 |
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Digestive health and other |
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1,435 |
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6,559 |
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Brands divested and under review |
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1,099 |
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7,658 |
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