GSK Stock Gains On Surge In Q3 Pre-tax Profit, Revision In FY25 Growth Outlook

(RTTNews) - British drug major GSK plc (GSK, GSK.L) reported Wednesday significantly higher pre-tax profit in its third quarter, mainly reflecting the absence of prior year's Zantac charge, as well as higher sales. Further, the company upgraded its fiscal 2025 outlook.

In London, GSK shares were gaining around 3.8 percent to trade at 1,706.00 pence. In pre-market activity on the NYSE, the shares were up around 3.7 percent to trade at $45.30.

Looking ahead for fiscal 2025, the company now expects core earnings per share growth of between 10 percent to 12 percent, while it previously expected towards the top end of the range of between 6 percent to 8 percent.

Core operating profit growth is now projected between 9 percent to 11 percent, compared to previous view of towards the top end of the range of between 6 percent to 8 percent.

The company now expects turnover growth of 6 percent to 7 percent, while previous view was towards the top end of the range of between 3 percent to 5 percent.

GSK noted that its full-year guidance is inclusive of tariffs enacted thus far and indicated potential European tariffs impact of 15 percent.

Emma Walmsley, Chief Executive Officer, GSK, said, "GSK's momentum continues with another quarter of strong performance, supporting upgraded guidance for 2025, and positioning us well for 2026 and achieving our longer-term growth outlooks.... We have also continued to make very good progress in R&D with four FDA product approvals so far this year, including for Blenrep in the US last week, and the start of pivotal trials and targeted business development to advance 15 scale pipeline opportunities, all launching before 2031."

In the third quarter, profit before tax surged to 2.46 billion pounds from last year's 64 million pounds.

On an after-tax basis, profit attributable to shareholders was 2.01 billion pounds or 49.1 pence per share, compared to loss of 58 million pounds or 1.4 pence a year ago.

The prior year results included a charge of 1.8 billion pounds or $2.3 billion in relation to Zantac.

Core profit before taxation was 2.85 billion pounds, compared to 2.65 billion pounds last year. Core earnings per share were 55.0 pence, compared to 49.7 pence in the prior year.

Operating profit surged to 2.59 billion pounds from last year's 189 million pounds.

In the quarter, turnover increased 7 percent to 8.55 billion pounds from prior year's 8.01 billion pounds. At constant exchange rates, sales grew 8 percent.

Sales grew in all areas, with particularly strong performances in Specialty Medicines driven by double-digit growth in Respiratory Inflammation & Immunology, Oncology and HIV.

Further, GSK has declared a dividend for the third quarter of 16 pence per share. The expected dividend for 2025 is 64p per share.

GSK added that it has commenced a 2 billion pounds share buyback programme, to be implemented over the period to the end of the second quarter of fiscal 2026.

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