GSK PLC on Wednesday upgraded its full-year guidance, after seeing a strong quarterly performance on the strength of segments like HIV and Vaccines.
For the three months ended June 30, the London-based pharmaceutical company reported pretax profit of £1.99 billion, more than doubled from £896 million a year before.
Adjusted operating profit rose to £2.17 billion from £2.00 billion.
GSK said that total operating profit margin was higher in the quarter and year to date thanks to a strong operating performance, as well as favourable movements in contingent consideration liabilities.
For the second quarter in particular, GSK noted strong sales across all three product areas and higher royalty income, partly offset by increased investment in research and development and product launches
Turnover increased to £7.18 billion from £6.93 billion a year prior.
GSK declared a quarterly dividend of 14 pence per share, the same as for the first quarter. It still expects to pay 56.5p for the year as a whole. This will be down 7.8% from 61.25p in 2022.
Reflecting on the first half, GSK said it had exceeded its full-year guidance expectations. It attributed this to ‘strong business momentum’ across all product areas, but particularly in HIV, as well as in General Medicines.
As a result, the firm upgraded its full-year 2023 guidance.
Turnover is now expected to increase by between 8% and 10%, raised from 6% to 8% previously.
Adjusted operating profit is expected to increase by between 11% to 13%, improved from 10% to 12%, and adjusted earnings per share are expected to increase between 14% to 17%, compared to guidance of 12% to 15% previously.
‘We have delivered another excellent quarter of performance, with strong sales and earnings growth, notably in HIV and Vaccines, and continued strengthening of the R&D pipeline and product portfolio,’ said Chief Executive Officer Emma Walmsley.
‘Our momentum supports the upgrade we have made to our financial guidance for 2023 and further increases our confidence in delivering longer-term profitable growth for shareholders.’
GSK shares were trading 0.8% higher at 1,403.80 pence each in London on Wednesday morning.
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