GSK Stock Up On Q4 Results, Positive Outlook; Plans To Buyback GBP 2 Bln Shares

(RTTNews) - Shares of GSK Plc. were gaining around 6 percent on the London Stock Exchange, as well as in the pre-market activity on the NYSE, after the British drug maker reported Wednesday a higher fourth-quarter results and issued positive outlook for fiscal 2025. The company further raised its sales view for fiscal 2031, and announced dividends and 2 billion pounds share buyback programme.

Emma Walmsley, Chief Executive Officer, GSK, said, "GSK delivered another year of excellent performance in 2024, with strong sales and core profit growth driven by accelerating momentum of our specialty medicines portfolio. This, together with outstanding phase III pipeline progress, means we expect another year of profitable growth in 2025, and have further improved our long-term outlook, with sales of more than £40 billion now expected by 2031."

For 2025, GSK expects its turnover to increase between 3 to 5 percent and core operating profit to increase between 6 to 8 percent, both at constant exchange rates. Core earnings per share is expected to increase between 6 to 8 percent in CER.

In fiscal 2024, turnover was 31.38 billion pounds, up 7 percent, Core operating profit was 9.15 billion pounds, up 11 percent, and core earnings per share were 159.3 pence, up 10 percent, all in CER.

Further, for 2031, GSK now expects to achieve sales of more than 40 billion pounds on a risk-adjusted basis and at CER, reflecting late-stage pipeline progress. Previously, the company anticipated sales above 38 billion pounds.

The company said there is no change to outlooks for 2021-2026. GSK continues to expect sales to grow more than 7 percent on a CAGR basis and core operating profit to increase more than 11 percent, on the same basis.

Further, GSK now plans to commence a 2 billion pounds share buyback programme, to be implemented over the next 18 months.

GSK has declared a dividend for fourth quarter of 16 pence per share and 61 pence per share for full year 2024. The expected dividend for 2025 is 64 pence per share.

For the fourth quarter, profit before tax grew to 563 million pounds from last year's 379 million pounds.

Profit attributable to shareholders was 414 million pounds or 10 pence per share, compared to prior year's 350 million pounds or 8.5 pence per share.

Core pre-tax profit was 1.29 billion pounds, compared to 1.56 billion pounds a year ago. Core earnings per share were 23.2 pence, compared to 28.9 pence last year.

Fourth-quarter core operating profit was 1.43 billion pounds, down 18 percent.

Turnover for the quarter was 8.12 billion pounds, 1 percent higher than prior year's 8.05 billion pounds. The growth was 4 percent at constant exchange rates.

The results reflected accelerating momentum in Specialty Medicines offsetting lower Vaccine sales.

In pre-market activity on the NYSE, GSK shares were trading at $37.09, up 6.46 percent.

In London, the shares are currently at 1,461.00 pence, up 5.87 percent.

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