GSK, a leading pharmaceutical company, has exceeded analysts' expectations with its robust sales and earnings. This achievement can largely be attributed to the success of their popular shingles vaccine, Shingrix, and the recent launch of their RSV vaccine, Arexvy.
Shares in GSK were down by 1.1%, or 16.8 pence, at 1,520.8 pence as of 1001 GMT. However, over the past month, they have shown an upward trend, increasing by 4.9%. In the last year, the shares have risen by an impressive 6.8%. This growth surpasses the wider FTSE 100 index, which experienced a monthly decline of 1% and a year-on-year decrease of 1.5%.
During the fourth quarter of last year, GSK reported sales of £8.05 billion ($10.22 billion), surpassing the previous year's figure of £7.33 billion. This strong performance exceeded the Visible Alpha consensus estimate of £7.61 billion. Sales of vaccines witnessed a substantial increase of 25% to reach £2.58 billion. This growth can be attributed to the successful market presence of Shingrix and the successful launch of Arexvy in the third quarter.
Looking ahead, GSK has expressed optimism for the current year, projecting a 5%-7% growth in turnover, a 7%-10% rise in adjusted operating profit, and a 6%-9% increase in adjusted earnings per share.
Furthermore, GSK has raised its long-term outlook for the period from 2021 to 2026. They now anticipate sales to grow at a compound annual growth rate of more than 7%, with an adjusted operating profit compound annual growth rate of over 11%. These figures represent an upgrade from their previous guidance of more than 5% and more than 10%, respectively, for these two metrics in 2021.
Sales Outlook for 2031
The sales outlook for 2031 has recently been revised and is now projected to exceed GBP38 billion, a significant increase of GBP5 billion compared to the previous estimate given in 2021. It's important to note that this forecast does not take into account any potential earnings from early-stage pipeline assets, business developments, or the Blenrep cancer medication.
Future Launches and Developments
Emma Walmsley, the Chief Executive, has stated that the company is now planning for at least 12 major launches starting from 2025. These launches will introduce new Vaccines and Specialty Medicines targeting infectious diseases, HIV, respiratory conditions, and oncology. This ambitious plan demonstrates the company's commitment to advancing healthcare solutions across various medical areas.
Last Year's Highlights
According to Walmsley, Arexvy's strong launch was one of the significant accomplishments of the past year. The vaccine generated impressive revenue of GBP1.2 billion in 2023 alone. Additionally, the company achieved notable progress in its drug pipeline, further contributing to its success.
Financial Performance
In the fourth quarter, adjusted operating profit reached GBP1.75 billion, a growth from GBP1.595 billion in the previous period. Looking at the overall performance for the full year, operating profit rose to GBP6.745 billion compared to GBP6.43 billion last year. The company also experienced an increase in turnover, reaching GBP30.32 billion compared to GBP29.32 billion previously. These positive results surpassed the consensus estimate provided by the company, which was GBP29.92 billion.
Dividends
The board of directors has declared a quarterly dividend of 16 pence per share. This brings the total dividend for the year to 58 pence per share, slightly lower than the previous year's figure of 61.25 pence per share. However, the board anticipates a dividend payment of 60 pence per share for the year 2024.
