GSK has upgraded its growth outlook for the years ahead after delivering a five per cent increase in sales in 2023 fuelled by strong vaccine sales.
In its end of year results, the pharmaceutical giant reported that vaccine sales were up 25 per cent over the year bringing total turnover to £30.3bn.
This helped GSK’s pretax profit to rise 14 per cent at constant exchange rates, taking it to just over £6bn.
GSK’s Arexvy vaccine for the respiratory syncytial virus, approved in the US in May last year, generated £1.2bn in the year while its shingles vaccination made £3.5bn, up 17 per cent on the year before.
This helped to offset the continued fall in revenue from Covid medications. The firm said it “does not anticipate any further COVID-19 pandemic-related sales or operating profit”.
“GSK delivered excellent performance in 2023, with clear highlights being the exceptional launch of Arexvy and continued progress in our pipeline,” Emma Walmsley, chief executive at GSK said.
The strong performance of GSK will be seen as an endorsement of Walmsley’s decision to split the business two years ago.
It was split into a vaccine and advanced healthcare wing – GSK – and the consumer healthcare spinout Haleon, which has also seen positive financial results. GSK remains a significant shareholder in the listed Haleon.
“We are now planning for at least 12 major launches from 2025, with new Vaccines and Specialty Medicines for infectious diseases, HIV, respiratory and oncology,” she continued.
The firm announced a 16p per share dividend for the final quarter, bringing the total annual dividend to 58p. It expects a full year dividend of 60p per share next year.
Looking into 2024, the pharmaceutical firm said it expects turnover growth of between five per cent to seven per cent.
Longer term it expects its sales to increase at a compound annual growth rate of more than seven per cent between 2021 and 2026 while adjusted operating profit will rise more than 11 per cent.