FX.co ★ GSK Q2 Profit Declines, Sales Rise; Lifts FY24 Guidance; Declares Dividend

GSK plc (GSK, GSK.L) announced on Wednesday that its second-quarter profit attributable to shareholders decreased to £1.17 billion, down from £1.62 billion in the same period last year. Earnings per share dropped 27% to 28.8 pence from 40.1 pence last year.

The decline in profit was primarily due to higher charges for Contingent Consideration Liability (CCL) remeasurements, driven by improved long-term HIV prospects and foreign currency movements.

Core earnings were reported at £1.77 billion, or 43.4 pence per share, compared to £1.57 billion, or 38.8 pence per share, from the previous year. Total operating profit fell by 22% to £2.14 billion, while core operating profit increased by 18% to £2.17 billion.

Turnover for the quarter rose by 10% to £7.88 billion, up from £7.18 billion in the previous year. When measured at constant currency rates, the growth was 13%.

Additionally, GSK has upgraded its fiscal 2024 outlook at constant exchange rates, now expecting core earnings per share to rise between 10% and 12%, higher than the previously anticipated growth of 8% to 10%. This is attributed to continued higher operating profit with lower net finance costs. Core operating profit is projected to grow between 11% and 13% at constant exchange rates (CER), an increase from the previously expected 9% to 11% rise. Annual turnover growth is now anticipated to be between 7% and 9%, higher than the previously expected range of 5% to 7%.

The guidance provided excludes contributions from COVID-19 solutions.

The Board has declared a second interim dividend for the second quarter of 15 pence per share, up from last year's 14 pence per share, and the company expects to declare a dividend of 60 pence per share for the full year 2024.