Record vaccine sales boost profits at GSK

Fourth-quarter profits at GSK came in ahead of expectations on Wednesday, boosted by strong demand for the drug giant’s blockbuster shingles vaccine.

The UK blue chip reported a 4% rise in fourth-quarter turnover, to £7.4bn, although on a constant currency basis sales eased 3%. Adjusted operating profits jumped 21%, or 5% when currency effects were taken into account, to £1.6bn, with earnings per share coming in at 25.8p.

Analysts had been expecting turnover of around £7.1bn and EPS closer to 21.2p.

Over the year, which saw GSK spin out its consumer healthcare business, turnover rose 13% on a constant currency basis to £29.3bn, with adjusted operating profits up 14% on the same basis at £8.2bn.

Within that, sales of speciality medicines jumped 29% to £11.3bn, while vaccines turnover was ahead 11% at £7.9bn. Sales of Shingrix, GSK’s shingles vaccine, soared 60% to £3bn.

Emma Walmsley, chief executive, said: "2022 was a landmark year for GSK, delivering the step change in performance we committed to, driven by strong growth in speciality medicines and vaccines, including record sales for Shingrix.

"We enter 2023 with good momentum, underpinning confidence in our ambitious sales and profit outlooks for 2026."

GSK expects turnover to increase between 6% and 8% in 2023, with adjusted operating profit ahead between 10% and 12% and earnings per share up between 12% and 15%. All forecasts are at constant exchange rates and exclude any contribution from Covid-19 drugs, sales of which are forecast to fall as demand continues to wane.

Last July, GSK spun out its consumer healthcare arm - which owns brands ranging from Sensodyne to Panadol - as Haleon, leaving it focused solely on vaccines and medicines.