Our step-change in growth
- Expected sales growth of more than 7%* and adjusted operating profit growth of more than 11%* on a compound basis 2021-26
- R&D focused on the science of the immune system and advanced technologies
- Positively impacting the health of 2.5 billion people by the end of the decade
- Leading ESG performance to be maintained
*View our cautionary statement regarding forward-looking statements
ANNUAL REPORT 2023
We are a focused biopharma company with strong momentum and big ambitions
Business model
We improve the health of hundreds of millions of people around the world by discovering, developing and manufacturing innovative vaccines, specialty and general medicines at scale.
We invest in outstanding people
Central to our success are our people. We also collaborate with world-leading experts and form strategic partnerships to complement our existing capabilities.
The value we create: now and in the future
- The greatest contribution we make is to improve the health of people around the world. In 2023 that included delivering more than 500 million vaccine doses and 1.8 billion packs of medicines.
- Looking ahead, GSK has a clear ambition to positively impact the health of 2.5 billion people by the end of the decade.
- We also create value for shareholders by investing in our business to provide shareholder returns, and in 2023 we paid a dividend of 58 pence per share.
- Our bold ambitions for patients are reflected in our upgraded growth outlooks to 2026 and 2031.
In recent years, we have transformed GSK to improve performance, strengthen capabilities and prepare for a new future. We have done this by prioritising Innovation, Performance and Trust across the entire company – driving a multi-year programme to improve R&D productivity, commercial execution, group structure and capital allocation.
| Innovation | Performance | Trust |
|---|---|---|
|
Innovation is critical to how we improve health and create financial value. We focus on the science of the immune system and the use of new platform and data technologies, investing in four core therapeutic areas (infectious diseases, HIV, respiratory/immunology and oncology). In 2023, our R&D expenditure was £6,223 million, up 13% AER and 14% CER on 2022. We’ve also strengthened our pipeline and technology capabilities through business development, seeking out new, differentiated opportunities in diseases with high patient need. |
Performance is delivered by investing effectively in our business and our people and executing competitively. In 2023 we've continued to focus on operational performance, with strong growth across all product areas and regions. This builds on good progress in 2022 and demonstrates strong, sustained performance momentum. It means we are confident in delivering our upgraded growth outlooks for the period 2021-26, and for 2031. |
ESG is embedded in our strategy and supports our sustainable performance and long-term growth. It helps us to build trust with and generate value for our stakeholders, reduce risk to our operations and create positive social impact. Our ESG Performance Rating is on track based on 95% of all performance metrics being met or exceeded. The metrics cover our six focus areas: access to healthcare, global health and health security, environment, diversity, equity and inclusion (DEI), ethical standards, and product governance.
|
Broad-based performance drove sales, profits and earnings growth
- Group turnover £30.3 billion +3% AER, +5% CER (+14% CER excluding COVID-19 solutions*)
- Vaccines £9.9 billion +24% AER, +25% CER (+24% CER excluding COVID-19 solutions*)
- Specialty Medicines £10.2 billion -9% AER, -8% CER (+15% CER excluding COVID-19 solutions*)
- General Medicines £10.2 billion +1% AER, +5% CER
- Total operating profit £6.7 billion +5% AER, +10% CER
- Adjusted operating profit £8.8 billion +8% AER, +12% CER
- Total continuing EPS 121.6p +10% AER, +16% CER
- Adjusted EPS 155.1p +11% AER, +16% CER
- Dividend of 58p per share
*COVID-19 solutions defined on page 53 of FY 2023 press release
Continued momentum in R&D delivery and strengthening of pipeline
- 4 major approvals
- 71 assets in the pipeline, 18 in phase III/registration
- 6 major business development deals
Leading ESG performance
- 1st in the pharmaceuticals industry in the S&P Global Corporate Sustainability Assessment, with a score of 84 (as of 24 November 2023)
- 12 Global Health pipeline assets progressed to address priority WHO diseases
- 10% reduction in operational carbon emissions
Our long-term priorities
We prioritise Innovation, Performance and Trust to be ambitious for patients, shareholders and our people.
Business sustainability
ESG is an integral part of our strategy and our investment case. It is a key driver in our goal to deliver health impact and shareholder returns as well as being core to the motivation of our people. We will pursue a focused approach to ESG, driven by our strengths, informing our strategy and addressing the key challenges of our industry over the long-term.
We have six ESG focus areas addressing what matters most to our business and to our stakeholders.
Governance
We are committed to operating at the highest standards of corporate governance. We believe our governance structure underpins our ability to deliver the Group's strategy to create long-term value and benefit for our shareholders and stakeholders.
Governance and risk managementFinancial highlights 2023
*COVID-19 solutions defined on page 53 of FY 2023 press release
