GSK Bets on Further Growth After Shingles and RSV Vaccines Boost Sales — Update

By Joe Hoppe

GSK expects to further grow sales and earnings after its best-selling shingles vaccine Shingrix and the launch of RSV vaccine Arexvy helped the pharma giant beat analysts' estimates.

The British pharmaceutical major posted sales of 8.05 billion pounds ($10.22 billion) for the fourth quarter of last year, up from GBP7.33 billion the year prior and beating a Visible Alpha consensus of GBP7.61 billion. Vaccine sales rose 25% to GBP2.58 billion, driven by Shingrix growth and the Arexvy launch in the third quarter.

The company said Wednesday that it expects turnover in the current year to grow between 5% and 7%, adjusted operating profit to rise 7%-10%, and adjusted earnings per share growth of 6%-9%.

It also upgraded its longer-term 2021-26 outlook to sales rising more than 7% on a compound annual growth rate, and an adjusted operating profit compound annual growth rate of more than 11%. In 2021, it had guided for more than 5% and more than 10%, respectively.

The 2031 sales outlook has been hiked to more than GBP38 billion, an increase of GBP5 billion compared to an estimate given in 2021.

Fourth-quarter adjusted operating profit increased to GBP1.75 billion from GBP1.595 billion.

For the full-year, operating profit rose to GBP6.745 billion from GBP6.43 billion, while turnover rose to GBP30.32 billion from GBP29.32 billion, beating a company-provided consensus of GBP29.92 billion.

The board declared a quarterly dividend of 16 pence a share, bringing the total for the year to 58 pence a share from 61.25 pence. The board expects to pay 60 pence over 2024.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

January 31, 2024 03:07 ET (08:07 GMT)

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