GSK, the British pharmaceutical major, has exceeded analysts' expectations with its robust sales performance in the fourth quarter of last year. The success of its best-selling shingles vaccine, Shingrix, and the recent launch of the RSV vaccine, Arexvy, have contributed significantly to this achievement.
In Q4 2021, GSK recorded sales of £8.05 billion ($10.22 billion), a notable increase from £7.33 billion in the previous year. This surpassed the Visible Alpha consensus of £7.61 billion. The remarkable growth in vaccine sales, which reached £2.58 billion, can be attributed to the strong demand for Shingrix and the successful introduction of Arexvy in the third quarter.
Looking ahead, GSK is optimistic about its prospects for the current year. The company anticipates a sales growth rate between 5% and 7%, accompanied by a 7%-10% rise in adjusted operating profit and a 6%-9% growth in adjusted earnings per share.
Moreover, GSK has raised its long-term outlook for the period of 2021-2026. The company now expects sales to increase by more than 7% annually, with an adjusted operating profit compound annual growth rate exceeding 11%. These projections represent an upgrade from the previous guidance of over 5% and more than 10%, respectively.
Furthermore, GSK has revised its sales outlook for 2031. The estimate has been increased to over £38 billion, reflecting a £5 billion raise compared to the previous estimate provided in 2021.
In terms of financial performance, GSK saw a rise in fourth-quarter adjusted operating profit to £1.75 billion from £1.595 billion. For the full year, operating profit increased to £6.745 billion from £6.43 billion, while turnover rose to £30.32 billion from £29.32 billion. These figures surpassed the company's own consensus of £29.92 billion.
The board has declared a quarterly dividend of 16 pence per share, resulting in a total dividend payout of 58 pence per share for the year, down from 61.25 pence previously. However, the board expects to pay 60 pence per share over the course of 2024.
Overall, GSK's strong sales growth driven by its vaccine portfolio positions the company for continued success in the future.
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