GSK profits down in 2014 after China bribery scandal

GlaxoSmithKline's profits suffered a dramatic fall in 2014 as the company was hit by a large fine over a bribery scandal at its Chinese operation, the drug maker said on 4 February, 2015.

Net profits almost halved to £2.8bn ($4.2bn, €4.7bn,) compared to £5.4bn in the previous year, according to the company's results.

However, the 2013 profits were given a boost following the sale of major drink brands Lucozade and Ribena.

Legal costs amounted to £548m in 2014, following a 3bn yuan fine from Chinese prosecutors over bribery charges.

"Legal charges of £548m, included a £301m fine paid to the Chinese government," the company said in a statement.

The company's image was battered in 2014 amid a series of bribery scandals. GSK faced investigations into allegations of bribery at its operations in the Middle East, including Lebanon and Jordan, as well as its Polish operation in Europe.

GSK's former head of China operations, Mark Reilly, received a suspended prison sentence, along with four other former officials.