GSK Boosts 2024 Profit Outlook, Anticipates H1 Sales Surge
GSK, a UK-based pharmaceutical giant, has updated its financial outlook, projecting higher profits and sales for the upcoming year. The company now forecasts an 8% to 10% increase in annual adjusted earnings per share, marking an improvement from its previously estimated growth range of 6% to 9%. This optimistic revision is largely due to robust demand for GSK's respiratory virus and shingles vaccines, which are expected to drive sales more significantly in the first half of the year.
The company's recent performance reflects a broader growth across its portfolio, notably in vaccines and specialty medicines. GSK's Shingrix vaccine, in particular, contributed £0.9 billion in sales. Despite facing higher charges related to contingent consideration liabilities, GSK has reported a substantial 27% growth in core operating profit.
Looking ahead, GSK anticipates its 2024 sales to align with the upper end of its 5% to 7% forecast range, while core operating profits are expected to grow by 9% to 11%, an adjustment from the 7% to 10% range previously predicted. The upward revision in projections aligns with CEO Emma Walmsley's strategic focus on strengthening the company's position in vaccines and infectious diseases, as well as transitioning its HIV treatments towards long-acting therapies.
Despite a dip in operating profit in the first quarter due to several one-time charges, GSK remains confident in its financial health, with expectations for higher royalty income throughout the year. The company's dividend policy is set to maintain a payout of 15p per share for the first quarter and a total of 60p for the full year of 2024.
