GSK 2Q Operating Profit Slipped Despite Higher Sales; Raises 2022 Outlook -- Update
By Joe Hoppe
GSK PLC said Wednesday that its second quarter operating profit
fell from the previous year though sales grew, and raised its
outlook for 2022.
The British pharmaceutical major posted an operating profit of
1.08 billion pounds ($1.30 billion) for the period, down from
GBP1.28 billion the year prior, primarily reflecting higher
accounting charges for reassessing liabilities, it said.
Adjusted earnings per share was 34.7 pence compared with 23
pence for the same period a year earlier.
Sales came in at GBP6.93 billion, up from GBP5.84 billion for
the second quarter of 2021, reflecting a strong performance across
all three of its product groups, the company said. Specialty
medicine sales rose 44% on an annual equivalent rate, while general
medicines rose 5% and vaccine turnover rose 9% on year, GSK
The company raised its outlook for 2022, saying that it now
expects sales growth of 6% to 8% and adjusted operating profit
growth of between 13% and 15%, both at constant exchange rates. The
boost particularly reflects exceptional second quarter results for
Shingrix, its shingle vaccine, and expectations for it to achieve
record annual growth.
The company had previously expected sales to grow 5% to 7% and
adjusted operating profit to rise 12% to 14%.
GSK said it expects slightly lower growth in the second half of
2022, due to a more challenging comparative period for sales and an
expected increase in research and development spend. Uncertain
economic conditions notwithstanding, GSK said it has also seen
evidence of healthcare systems recovering from the Covid-19
The board declared a dividend of 16.25 pence a share for the
second quarter and said it continues to expect a dividend of 61.25
pence a share for the full-year.
"Improvements in [research and development] and operating
performance, together with a strengthened post-demerger balance
sheet, create new capacity and flexibility for GSK to invest in
growth and innovation for patients and shareholders," Chief
Executive Emma Walmsley said.
Write to Joe Hoppe at firstname.lastname@example.org
(END) Dow Jones Newswires
July 27, 2022 03:11 ET (07:11 GMT)
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