GSK lifts guidance as Q2 sales beat forecasts

31st Jul 2024 07:37

(Sharecast News) - UK pharmaceutical company GSK raised annual forecasts after better-than-expected second-quarter results, driven by a strong performance from its cancer and HIV treatments.

Second-quarter sales rose 13% to £7.88bn beating analysts' average forecasts of £7.51bn in a company-compiled consensus.

The company now expects 2024 core earnings per share to grow between 10% and 12%, from earlier forecasts of 8% to 10%. Sales for the year are forecast to rise between 7% - 9%, up from 5% - 7%.

Core operating profit rose 18% on "strong sales and favourable product and regional mix", partly offset by continued increased investment in research and development and growth assets along with lower royalty income.

However, total operating profit fell by 22% to £1.6bn and earnings per shares by 27% due to "improved longer term HIV prospects and foreign currency movements".

"We have strengthened capabilities in key technology platforms and completed investments to develop new mRNA vaccines, ultra-long-acting HIV medicines and a promising new medicine for severe asthma. All this supports our future growth and confidence to bring meaningful innovation to patients," said chief executive Emma Walmsley.

Reporting by Frank Prenesti for Sharecast.com