GSK shares gained 0.4% to 1,762.1p in late morning trading on Wednesday after the pharmaceutical company announced a 19% AER sales climb to £6.9 billion in Q2 2022.
The group reported a 44% growth in Speciality Medicines revenue to £2.7 billion, alongside a 9% rise in Vaccines revenue to £1.7 billion and a 5% General Medicines revenue increase to £2.5 billion.
GSK highlighted a total continuing operating margin of 16% and an adjusted operating margin of 29%.
The company noted a total EPS fall of 40% to 20.8p and an adjusted EPS rise of 23% to 34.7p.
GSK mentioned an adjusted operating profit rise of 22% to £2 billion, along with a total operating profit of £1 billion against £1.2 billion year-on-year, following higher re-measurement charges for contingent consideration liabilities, partly offset by increased profits on turnover growth of 13% at CER and a rise in milestone income.
The firm announced a Q2 2022 continuing cash generation from operations of £1.6 billion and a free cash flow of £300 million.
The company added its balance sheet was strengthened after its demerger and listing of Haleon on 18 July, through a dividend of over £7 billion from the group.
Guidance FY 2022
GSK reported an expected sales growth between 6% to 8%, revised from 5% to 7% for FY 2022, with an adjusted operating profit climb between 13% to 15% from its previous estimation of 12% to 14% at CER.
The pharmaceutical giant said it projected an adjusted EPS rise of 1% lower than its operating profit.
GSK confirmed a dividend per share of 16.2p for Q2 2022, with no change anticipated in the expected dividend of 61.2p per share for FY 2022.
“This is GSK’s first set of results as a newly focused biopharma company, and we have delivered an excellent second quarter performance, with strong growth in Specialty Medicines, including HIV, and a record quarter for our shingles vaccine Shingrix,” said GSK CEO Emma Walmsley.
“With this momentum in sales and operating profit growth, we have raised our full-year guidance and are confident in delivering the long-term growth outlooks we set out for shareholders last year.”
