GSK Q1 2025 Earnings Results summary podcast – Stock & Business Insights

Описание: GSK Q1 2025 Results: Concise Summary
GSK announced their First Quarter 2025 results on Wednesday, April 30, 2025. The company reported strong performance in the quarter and affirmed its full-year 2025 financial guidance.

Key Financial Highlights (Q1 2025):
• Total Turnover: £7,516 million, showing growth of 4% at Constant Exchange Rates (CER) and 2% at Actual Exchange Rates (AER).
• Total Operating Profit: £2,216 million, a substantial increase of 50% at CER and 49% at AER.
• Total Profit after Taxation: £1,772 million, up 66% at CER and 64% at AER.
• Total Earnings Per Share: 39.7p, a rise of 56%.
• Core Earnings Per Share: 44.9p. GSK uses Core results, a non-IFRS measure, to provide guidance as it offers a view of underlying performance by excluding certain items like significant legal charges and restructuring costs.
• Cash Flow: Cash generated from operations was £1,301 million, an increase from the prior year.

Free cash inflow significantly increased to £697 million.
• Net Debt: Total net debt was £13,947 million at the end of the quarter, an increase from the start of the year, partly due to acquisitions.
Segment Performance (Q1 2025 at CER):
• Specialty Medicines: Saw strong growth of 17% in turnover to £2,933 million, driven by performance across HIV (7% growth, with strong contributions from Dovato and Cabenuva), Respiratory, Immunology and Inflammation (including Nucala and Benlysta), and Oncology.
• Vaccines: Turnover decreased by 6% to £2,095 million. This was primarily due to a decrease in Shingrix sales, particularly in the US and International markets, and a significant decrease in Arexvy sales (-57%), largely reflecting lower US demand following a more limited ACIP recommendation for certain older adults. Established Vaccines also saw a decrease.
• General Medicines: Turnover was broadly stable, decreasing by less than 1% at CER to £2,488 million. This segment includes Respiratory products like Trelegy, which showed strong growth (15%), offsetting declines in older products and other general medicines due to generic competition.

Pipeline and R&D Updates:
GSK highlighted continued progress across its pipeline.
• HIV: Data for pipeline assets (VH184, VH499, N6LS) supporting ultra-long-acting regimens were presented. A six-monthly dosing registrational study is planned for 2027.
• Regulatory Actions: Blenrep received a regulatory decision in the UK for 2L+ multiple myeloma, with US and EU submissions ongoing. Blujepa (gepotidacin) was approved in the US for uncomplicated urinary tract infection. Penmenvy, a new 5-in-1 meningococcal vaccine, was approved by the US FDA and recommended by ACIP for adolescents. ACIP also voted to recommend Arexvy for adults aged 50-59 at increased risk for severe RSV disease.
• Upcoming Milestones (H1 2025): Anticipated regulatory decisions include Nucala in COPD (US) and Blenrep (Japan). Regulatory submissions are expected for linerixibat (cholestatic pruritus in primary biliary cholangitis) in the US and EU.
• Key Data: Positive data on co-administration of Arexvy with PCV20 were presented. Phase III data readouts are anticipated for depemokimab (severe asthma) and cobolimab (non-small cell lung cancer). Results from the Zejula ZEAL-1L trial in 1L maintenance non-small cell lung cancer did not meet the primary endpoint.
• HBV: Phase IIb trials started for bepirovirsen, with Phase III data expected in 2026.
Business Development:
GSK completed the acquisition of IDRx, Inc. for up to $1.25 billion (£959 million) in total potential consideration to strengthen its oncology pipeline. A global settlement was reached with Pfizer for RSV litigation, including a royalty stream for GSK.

Shareholder Returns:
A dividend of 16p per share was declared for Q1 2025. The new £2 billion share buyback programme commenced, with £273 million of shares repurchased in the quarter.
2025 Guidance (at CER):
GSK remains confident in its full-year guidance:
• Turnover: Expected to increase by 3% to 5%.
• Core Operating Profit: Expected to increase by 6% to 8%.
• Core EPS: Expected to increase by 6% to 8%, including the impact of the share buyback program.
• Guidance is supported by expected low double-digit turnover growth in Specialty Medicines, a low single-digit decrease in Vaccines, and broadly stable General Medicines turnover.

Responsible Business:
Burundi became the tenth country to roll out GSK’s RTS,S malaria vaccine as part of routine immunization, demonstrating a commitment to access for underserved populations.

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