GSK (GSK) Q4 2024 earnings summary

Executive summary

• 2024 sales grew 8% to over GBP 31.4 billion, driven by specialty medicines and offsetting vaccine headwinds.

• Core operating profit rose 13%, core EPS up 12% to 159.3p, and dividend increased to GBP 0.61 per share.

• Specialty medicines and vaccines now dominate the portfolio, with strong innovation and operational performance.

• Five new product approvals expected in 2025, including Blenrep and Depemokimab.

• Announced GBP 2 billion share buyback over 18 months, maintaining increased R&D and launch investments.

Financial highlights

• Sales: GBP 31.4 billion (+8% year-over-year, excluding COVID-19 solutions).

• Core operating profit: GBP 9.1 billion (+13% year-over-year, excl. COVID-19).

• Core EPS: 159.3p (+12% year-over-year, excl. COVID-19); dividend: GBP 0.61/share for 2024 (+5%), guidance for GBP 0.64/share in 2025.

• Core operating margin: 29.2%, up 130 bps year-over-year.

• Free cash flow (ex-Zantac): GBP 3.5 billion; net debt reduced to GBP 13 billion.

Outlook and guidance

• 2025 sales expected to grow 3–5%; core operating profit and EPS to rise 6–8%.

• 2025 growth to be second-half weighted due to base effects and non-repeating 2024 benefits.

• 2031 sales outlook raised to over GBP 40 billion, with specialty medicines >50% of sales.

• Five major approvals expected in 2025; margin guidance unchanged at >31% by 2026.

• 2025 dividend expected at 64p/share; GBP 2 billion share buyback program initiated.