GSK (GSK) Q3 2024 earnings summary

Executive summary

• Achieved 9% year-to-date sales growth and 19% core operating profit growth, led by Specialty Medicines, with strong performance in HIV, Respiratory/Immunology, and Oncology.

• Specialty Medicines now the largest product area, with 19% Q3 growth and double-digit gains in HIV, Respiratory/Immunology, and Oncology.

• Pipeline momentum continues with 67 vaccines and medicines in development, 11 positive phase 3 readouts, and five major launches planned for 2025.

• Resolved most Zantac litigation with a £1.8 billion charge, reducing legal risk and enabling focus on future growth.

• Strong cash flow and capital allocation support increased pipeline investment, higher dividends, and shareholder returns.

Financial highlights

• Q3 2024 sales reached £8.0 billion (+2% CER), with year-to-date sales up 9%.

• Core operating profit up 5% in Q3, with core EPS also up 5% to 49.7p.

• Cash generated from operations reached £5.3 billion year-to-date; free cash flow for Q3 was £1.3 billion.

• Dividend for Q3 increased to 15p per share.

• Net debt reduced to £12.8 billion by end of Q3 2024.

Outlook and guidance

• 2024 guidance reaffirmed: 7%-9% sales growth, 11%-13% core operating profit growth, and 10%-12% core EPS growth.

• Specialty Medicines expected to grow high teens, Vaccines to decline low single digits, General Medicines to grow mid single digits.

• Confident in 2026 and 2031 outlooks: >7% sales CAGR, >11% core operating profit CAGR, and 2031 sales target >£38bn.

• No further COVID-19 solution sales expected in 2024, with a 1–2 percentage point adverse impact on growth.

• Full-year dividend expected at 60p per share.