GSK PLC (LON:GSK) has announced its 1st quarter results.
Specialty Medicines growth drives Q1 performance
- Total Q1 sales £7.5 billion +2% AER; +4% CER
- Specialty Medicines sales £2.9 billion (+17%); Respiratory, Immunology and Inflammation £0.8 billion (+28%); Oncology £0.4 billion (+53%); HIV sales £1.7 billion (+7%)
- Vaccines sales £2.1 billion (-6%); Shingrix £0.9 billion (-7%); Meningitis vaccines £0.4 billion (+20%); and Arexvy £0.1 billion (-57%)
- General Medicines sales £2.5 billion (stable); Trelegy £0.7 billion (+15%)
- Total operating profit +50% and Total EPS +56% driven by lower CCL charges
- Core operating profit +5% and Core EPS +5% reflecting strong Specialty Medicines performance and disciplined increased investment in R&D portfolio progression, new asset launches and growth assets
- Cash generated from operations exceeded £1 billion with free cash flow of £0.7 billion
(Financial Performance – Q1 2025 results unless otherwise stated, growth % and commentary at CER as defined on page 44).
| Q1 2025 | |||||
| £m | % AER | % CER | |||
| Turnover | 7,516 | 2 | 4 | ||
| Total operating profit | 2,216 | 49 | 50 | ||
| Total operating margin % | 29.5% | 9.2ppts | 9.0ppts | ||
| Total EPS | 39.7p | 55 | 56 | ||
| Core operating profit | 2,533 | 4 | 5 | ||
| Core operating margin % | 33.7% | 0.5ppts | 0.3ppts | ||
| Core EPS | 44.9p | 4 | 5 | ||
| Cash generated from operations | 1,301 | 16 | |||
Pipeline progress and investment delivering future growth opportunities:
5 major new FDA product approvals expected in 2025:
- Q1 2025 approvals: Penmenvy, meningitis vaccine; Blujepa, first-in-class antibiotic treatment for uUTIs
- Positive ACIP recommendations for Penmenvy (and Arexvy (adults 50-59))
- Further approvals expected for: Nucala (COPD); Blenrep (multiple myeloma); and depemokimab (severe asthma and nasal polyps)
14 key opportunities expected to launch 2025-2031 each with PYS potential above £2 billion
- Data presented at CROI for VH184, VH499 and N6LS support development plans for ULA HIV regimens
- Breakthrough designation granted for GSK’227 B7H3 ADC for 2L osteosarcoma
- Pivotal/Phase III trials expected to start in 2025 for: Respiratory (depemokimab COPD programme – ENDURA); Oncology (GSK’227 B7H3 ADC ES-SCLC; IDRx-42 2L GIST; Ojjaara (MDS)); and HIV (Q4M treatment)
Investment in targeted business development continues
- Acquisition of IDRx completed
- New partnership with ABL Bio in neurodegenerative diseases; and novel research collaboration with UK Dementia Research Institute & HDRUK to investigate shingles vaccination with prevention of dementia
Continued commitment to shareholder returns
- Dividend declared of 16p for Q1 2025; 64p expected for full year 2025
- £273 million of shares bought back as part of the £2 billion share buyback programme commenced in Q1 2025
Confident for delivery of 2025 guidance
- Continue to expect 2025 turnover growth 3% to 5%; Core operating profit growth 6% to 8%; Core EPS growth 6% to 8%
Guidance all at CER
Emma Walmsley, Chief Executive Officer:
“GSK continues to make strong progress, demonstrating the quality, strength and resilience of our portfolio. Specialty Medicines, our largest business, delivered strong sales contributions in the quarter and R&D progress continued, with two of the five FDA product approvals expected this year now secured, and the acquisition of a promising new oncology asset. We are very focused on preparing for launches of Blenrep, Nucala and depemokimab, and pivotal trials for potential new medicines in respiratory, oncology, HIV and hepatitis. This momentum, together with the strength of our portfolio and proven ability to drive operating leverage, underpin our confidence in guidance for the year and our longer-term outlooks.”
The Total results are presented in summary above and on page 7 and Core results reconciliations are presented on pages 19 and 20. 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 pages 44-45: Core results, AER% growth, CER% growth, turnover; and other non-IFRS measures. GSK provides guidance on a Core results basis only for the reasons set out on page 17. 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 46. Abbreviations are defined on page 50.
2025 Guidance
GSK affirms its full-year 2025 guidance at constant exchange rates (CER).
Turnover is expected to increase between 3 to 5 per cent
Core operating profit is expected to increase between 6 to 8 per cent
Core earnings per share is expected to increase between 6 to 8 per cent
This guidance is supported by the following turnover expectations for full-year 2025 at CER
Specialty Medicines
- expected increase of a low double-digit per cent in turnover
Vaccines
- expected decrease of a low single-digit per cent in turnover
General Medicines
- expected to be broadly stable for turnover
Core operating profit is expected to grow between 6 to 8 per cent at CER. GSK expects to deliver leverage at a gross margin level due to improved product mix from Specialty Medicines growth and continued operational efficiencies. In addition, GSK anticipates further leverage in Operating profit as we continue to take a returns-based approach to SG&A investments. Royalty income is now expected to be higher than previously guided at £750-800 million, including an IP settlement agreed in April. This additional income will be reinvested in the pipeline this year.
Core earnings per share is expected to increase between 6 to 8 per cent at CER, in line with Core operating profit growth, reflecting higher interest charges and the tax rate which is expected to rise to around 17.5%, offset by the expected benefit of up to 1% from the share buyback programme. Expectations for non-controlling interests remain unchanged relative to 2024.
Tariffs
GSK notes that the US Administration has initiated an investigation under Section 232 of the Trade Expansion Act to determine the effects on national security of imports of pharmaceutical products. The company is well positioned to respond to the potential financial impact of sector-specific tariffs, should they be implemented, with mitigation options identified in the supply chain and productivity initiatives. The company will continue to monitor and review developments related to this situation.
Dividend policy
The Dividend policy and the expected pay-out ratio remain unchanged. Consistent with this, GSK has declared a dividend for Q1 2025 of 16p per share. GSK’s future dividend policy and guidance regarding the expected dividend pay-out in 2025 are provided on page 31.
GSK has commenced a £2 billion share buyback programme, to be implemented over the period to the end of Q2 2026.
2021-2026 and 2031 Outlooks
In February 2025 GSK set out improved outlooks for 2031. Please see 2024 full year and fourth quarter results on gsk.com(1).
Exchange rates
If exchange rates were to hold at the closing rates on 24 April 2025 ($1.33/£1, €1.17/£1 and Yen 190/£1) for the rest of 2025, the estimated impact on 2025 Sterling turnover growth for GSK would be -2% and if exchange gains or losses were recognised at the same level as in 2024, the estimated impact on 2025 Sterling Core Operating Profit growth for GSK would be -4%.
Results presentation
A conference call and webcast for investors and analysts of the quarterly results will be hosted by Emma Walmsley, CEO, at 12 noon BST (US EDT at 07.00 am) on 30 April 2025. Presentation materials will be published on www.gsk.com prior to the webcast and a transcript of the webcast will be published subsequently.
Notwithstanding the inclusion of weblinks, information available on the company’s website, or from non GSK sources, is not incorporated by reference into this Results Announcement.
