GSK Q3 pharmaceutical sales grow 5%, lifts 2021 EPS guidance
By Jenny McCall
12:07, 27 October 2021
UK pharmaceutical company GlaxoSmithKline (GSK) raised its full year earnings per share (EPS) guidance Wednesday while reporting higher third quarter sales.
Turnover for the three months ended 30 September rose 5% to £9.1bn on a reported basis and increased 10% at constant exchange rates (CER).
Adjusted operating profit grew 8% (16% CER) to £2.9bn, or 36.6p per share.
The group said its sales growth was driven by strong commercial execution and underlying demand.
Pharmaceutical sales increased by 5% (10% CER) to £4.4bn, with New and Speciality medicines up 24% at CER. Respiratory, Immuno-inflammation (ex-Covid-19 solutions) and Oncology all grew more than 30% at CER.
Vaccine sales rose 7% (13% CER) to £2.2bn.
Covid-19 sales totalled £209m.
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Improved EPS guidance
GSK raised its EPS guidance. The group now expects 2021 Adjusted EPS to decline 2%–4% at CER, excluding Covid-19 solutions versus previous expectations of a drop in the mid-to-high single digits.
Covid-19 solutions are expected to contribute 7%–9% to EPS at CER. GSK’s previous guidance did not address Covid-19 solutions.
The group reaffirmed its expectation of “meaningful improvement in revenues and margins.”
Chief executive Emma Walmsley said: “GSK has delivered another quarter of strong business performance, with double-digit sales growth in Pharmaceuticals and Vaccines, increased momentum in Consumer Healthcare, and continued discipline on costs.
“This has allowed us to improve our full-year guidance and, alongside the progress in strengthening our Research and Development pipeline, reinforces our confidence in the outlook for a step-change in growth and performance in 2022 and beyond. We also continue to make excellent progress towards unlocking the value of Consumer Healthcare through a successful demerger in mid-2022.”
The group declared an interim dividend of 19p and continues to expect 80p per share for 2021.
Shares are up 0.99% in afternoon trading.
Read more: GSK backs CEO after Elliott charge
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