GSK delivers continued strong performance and upgrades 2024 guidance
Broad-based performance drives sales, core profit and core EPS growth:
•
Total Q2 2024 sales £7.9 billion +13%
•
Vaccines sales +1%, +3% ex COVID. Shingrix £0.8 billion -4%
•
Specialty Medicines sales +22%. HIV sales +13%. Oncology sales more than doubled at £0.4 billion
•
General Medicines sales +12%. Trelegy £0.8 billion +41%
•
Total operating profit -22% and Total EPS -27% for Q2 2024 primarily reflected higher charges for CCL(1) remeasurements driven by improved longer term HIV prospects and foreign currency movements
•
Core operating profit +18% (with further positive impact of 3% ex COVID) and Core EPS +13% (with further positive impact of 4% ex COVID). This reflected continued leverage from strong sales and favourable product and regional mix, partly offset by continued increased investment in R&D and growth assets, and lower royalty income
•
Cash generated from operations in the quarter £1.7 billion with Free cash flow of £0.3 billion
(Financial Performance – Q2 2024 results unless otherwise stated, growth % and commentary at CER, ex COVID is excluding COVID-19 solutions as defined on page 60).
Q2 2024
Year to date
£m
% AER
% CER
£m
% AER
% CER
Turnover
7,884
10
13
15,247
8
12
Turnover ex COVID
7,884
10
13
15,246
9
13
Total operating profit
1,646
(23)
(22)
3,136
(26)
(20)
Total operating margin %
20.9%
(8.9ppts)
(9.1ppts)
20.6%
(9.3ppts)
(8.4ppts)
Total EPS
28.8p
(28)
(27)
54.5p
(29)
(24)
Core operating profit
2,513
16
18
4,956
16
22
Core operating margin %
31.9%
1.6ppts
1.3ppts
32.5%
2.3ppts
2.9ppts
Core EPS
43.4p
12
13
86.5p
14
20
Cash generated from operations
1,650
2
2,776
46
Continued R&D progress with growth prospects strengthened in all key therapeutic areas:
•
Infectious Diseases: FDA approval for Arexvy in adults aged 50-59 at increased risk from RSV; filings accepted for meningitis (ABCWY) vaccine
•
HIV: regimen selection for CAB-ULA, and data for new 3rd generation integrase inhibitor, support portfolio progression and long-term growth outlooks
•
Respiratory/Immunology: Pivotal data for depemokimab (SWIFT 1/2) support filings as first ultra-long-acting biologic for severe asthma
•
Oncology: Pivotal data for Blenrep (DREAMM-8) support regulatory submissions (EU filed; US H2 2024). Data supporting expanded use of Jemperli in patients with endometrial cancer presented (regulatory decisions expected H2 2024). Approval for Omjjara received in Japan
2024 guidance upgraded; Q2 2024 dividend of 15p declared continue to expect 60p full year dividend:
•
2024 turnover growth increase of 7% to 9% (previously 5% to 7%); Core operating profit growth of 11% to 13% (previously 9% to 11%); Core EPS growth of 10% to 12% (previously 8% to 10%)
Guidance all at CER and excluding COVID-19 solutions
Emma Walmsley, Chief Executive Officer, GSK:“GSK’s momentum this year continues with excellent second quarter performance, reflecting strong operational execution and the strengthening breadth of our portfolio to both prevent and treat disease. Q2 sales grew in all areas, with Specialty Medicines in particular benefitting from new product launches in oncology and HIV. In R&D, so far this year, we have secured approvals or filings for 10 major opportunities and reported positive data from 7 phase III trials. We have also strengthened capabilities in key technology platforms and completed investments to develop new mRNA vaccines, ultra-long-acting HIV medicines and a promising new medicine for severe asthma. All this supports our future growth and confidence to bring meaningful innovation to patients”.
The Total results are presented in summary above and on page 8 and Core results reconciliations are presented on pages 20 and 23. Core results are a non-IFRS measure that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. The following terms are defined on page 60: Core results, £% or AER% growth, CER% growth,COVID-19 solutions, turnover excluding COVID-19 solutions; and other non-IFRS measures. GSK provides guidance on a Core results basis only, for the reasons set out on page 18. All expectations, guidance and targets regarding future performance and dividend payments should be read together with ‘Guidance and outlooks, assumptions and cautionary statements’ on page 62. (1) Contingent consideration liability is abbreviated to CCL.
2024 Guidance
GSK revises its full-year guidance at constant exchange rates (CER). All guidance, expectations and full-year growth rates exclude any contributions from COVID-19 solutions.
GSK delivered a strong first half 2024 performance with excellent business momentum, including increased sales growth of Specialty Medicines, particularly reflecting successful new launches in Oncology and for long-acting HIV medicines. General Medicines, including Trelegy, also continued to perform better than expected. Sales are now expected to grow between 7 to 9 per cent at CER (previously “upper part of the range of between 5 to 7 per cent increase”). Improved sales performances in Specialty and General Medicines are expected to more than offset lower sales growth of Vaccines this year, which reflects revised recommendations for RSV vaccinations issued in June by the US Advisory Committee on Immunization Practices.