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GSK sales grow as restructuring weighs on operating profit

GSK reported third-quarter sales of 8.887 billion pounds, up 4 percent at actual exchange rates, while total operating profit fell 18 percent. Specialty medicines grew as vaccines declined. A 328 million pounds restructuring charge weighed on results. The company retained its annual growth forecasts, and its quarterly dollar-denominated earnings and revenue exceeded Zacks estimates.

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Blister-packed tablets fill an open medicine drawer, with capped glass vials on a recessed shelf behind it.

Specialty medicines lift quarterly sales

Drugmaker GSK increased third-quarter revenue to 8.887 billion pounds, a rise of 4 percent at actual exchange rates and 5 percent at constant rates. Its quarterly revenue also exceeded the consensus tracked by Zacks. Specialty medicines generated 3.9 billion pounds, growing 15 percent at constant exchange rates.[1], [2]

Within specialty medicines, treatments for human immunodeficiency virus (HIV) generated 2.1 billion pounds in sales, up 10 percent at constant rates. Respiratory, immunology and inflammation medicines grew 21 percent to 1.1 billion pounds, while oncology medicines rose 23 percent to 0.6 billion pounds. Vaccine sales fell 2 percent to 2.6 billion pounds on the same exchange-rate basis.[1]

Restructuring reduces total operating profit

Total operating profit dropped 18 percent at actual exchange rates to 2.127 billion pounds. Core operating profit, which excludes certain items, rose 3 percent to 3.076 billion pounds on that basis. The company reported 328 million pounds in restructuring charges for its Accelerate Growth programme. Operations generated 3.122 billion pounds in cash, and free cash flow was approximately 2.1 billion pounds.[1]

Annual growth forecasts remain in place

GSK retained its 2026 forecast for revenue growth of 3–5 percent and growth of 7–9 percent in core operating profit and core earnings per share. These company projections remain uncertain. It declared a quarterly dividend of 17 pence and expects a full-year dividend of 70 pence. GSK said it had started 18 studies toward its annual target of 22 phase-three clinical trials.[1]

References

  1. News sourceGSKGSK medicine sales grow as restructuring reduces total profit↩1↩2↩3↩4
  2. News sourceZacksGSK quarterly earnings beat Zacks estimate↩
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