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Issued: London, UK
GSK on track to deliver 2024 outlooks with further good progress made in R&D
Q3 2024 sales and core earnings growth driven by strong performance of Specialty Medicines helping to offset lower Vaccines sales:
- Total Q3 2024 sales £8.0 billion -2% AER; +2% CE
- Vaccines sales -15%. Shingrix -7% and Arexvy -72% reflecting ACIP guideline changes, prioritisation of COVID vaccinations in the US and annualisation of Arexvy launch in Q3 2023
- Specialty Medicines sales +19%. HIV sales +12%. Oncology +94%. Respiratory/Immunology and other +14%
- General Medicines sales +7%. Trelegy +16%
- Total operating profit -86% and Total EPS -100% driven by a charge of £1.8 billion ($2.3 billion) in relation to the Zantac settlement
- Core operating profit +5% and Core EPS +5% reflecting strong Specialty Medicines performance, together with effective cost management
- Cash generated from operations in the quarter £2.5 billion with Free cash flow of £1.3 billion
| Q3 2024 | Year to date | |||||
|---|---|---|---|---|---|---|
| £m | % AER | % CER | £m | % AER | % CER | |
| Turnover | 8,012 | (2) | 2 | 23,259 | 4 | 8 |
| Turnover ex COVID | 8,012 | (2) | 2 | 23,258 | 5 | 9 |
| Total operating profit | 189 | (90) | (86) | 3,325 | (46) | (41) |
| Total operating margin % | 2.4% | (21.6ppts) | (20.6ppts) | 14.3% | (13.4ppts) | (12.5ppts) |
| Total EPS | (1.4p) | >(100) | (100) | 53.0p | (53) | (48) |
| Core operating profit | 2,761 | – | 5 | 7,717 | 10 | 16 |
| Core operating margin % | 34.5% | 0.4ppts | 1.0ppts | 33.2% | 1.6ppts | 2.2ppts |
| Core EPS | 49.7p | (1) | 5 | 136.2p | 8 | 14 |
| Cash generated from operations | 2,499 | – | 5,275 | 19 | ||
Further progress in R&D with growth prospects strengthened in all key therapeutic areas:
- Infectious Diseases: EU approval for Arexvy in adults aged 50-59 at increased risk, and positive new data indicates protection over three RSV seasons; US FDA file acceptance for gepotidacin in uncomplicated UTI; bepirovirsen granted SENKU designation in Japan for chronic hepatitis B
- HIV: Real-world studies demonstrate 99% effectiveness for Apretude, the only approved long-acting medicine for HIV PrEP
- Respiratory/Immunology: Positive results announced for ultra long-acting biologic, depemokimab, for phase III ANCHOR trial (CRSwNP)(1) and full results for SWIFT-1&2 trials (severe asthma) supporting filing for severe asthma and CRSwNP before year end with dual indication, potential launch in 2025. Positive headline results announced for phase III MATINEE trial for Nucala in COPD. Nucala approved in Japan for CRSwNP
- Oncology: Expanded US FDA approval for Jemperli in endometrial cancer; Blenrep filed in US, EU and Japan and received Breakthrough Therapy Designation in China; US FDA Breakthrough Therapy Designation for GSK5764227 (B7-H3-targeted antibody-drug conjugate) in small-cell lung cancer
2024 guidance confirmed; Q3 2024 dividend of 15p declared and continue to expect 60p full year dividend:
- 2024 turnover growth of 7% to 9%; Core operating profit growth of 11% to 13%; Core EPS growth of 10% to 12%. Expected to deliver broadly around the middle of existing ranges
Emma Walmsley, Chief Executive Officer, GSK:
“We have delivered another quarter of sales and core operating profit growth, and further good progress in R&D. Strong growth in specialty medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV, as well as the resilience we have now built into GSK’s portfolio and performance. Our pipeline continues to strengthen with 11 positive phase III trials reported so far this year and we are currently planning launches for 5 major new product approval opportunities next year: Blenrep, Depemokimab, Nucala for COPD, Gepotidacin, and our new vaccine to prevent meningitis (MenABCWY). We also resolved the vast majority of Zantac litigation in the quarter, to remove uncertainty and so we can focus forward. All this means we are on track to deliver our 2024 guidance, and we are even more confident in our 2026 and 2031 outlooks.”
Assumptions and cautionary statement regarding forward-looking statements
The Group’s management believes that the assumptions outlined above are reasonable, and that the guidance, outlooks, and expectations described in this report are achievable based on those assumptions. However, given the forward-looking nature of these guidance, outlooks, and expectations, they are subject to greater uncertainty, including potential material impacts if the above assumptions are not realised, and other material impacts related to foreign exchange fluctuations, macro-economic activity, the impact of outbreaks, epidemics or pandemics, changes in legislation, regulation, government actions or intellectual property protection, product development and approvals, actions by our competitors, and other risks inherent to the industries in which we operate.
This document contains statements that are, or may be deemed to be, “forward-looking statements”. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should, however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements.
All guidance, outlooks and expectations should be read together with the guidance and outlooks, assumptions and cautionary statements in this Q3 2024 earnings release and in the Group's 2023 Annual Report on Form 20-F. Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group’s control or precise estimate. The Group cautions investors that a number of important factors, including those in this document, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under Item 3.D ‘Risk Factors’ in the Group’s Annual Report on Form 20-F for 2023. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this report.
