Pharmaceutical giant GlaxoSmithKline has released its full-year results for 2023, showing strong growth in Q4 and exuding confidence in the near-term and long-term growth prospects. Growth in Q4 was primarily driven by increased yearly sales as a result of the introduction of a new breakthrough vaccine, which has seen the company revise its long-term profit forecast upwards. In 2024, GSK anticipates a 5-7% increase in sales and a 7-9% increase in profitability. GSK’s share price rose marginally by +0.5% at the time of going to press in the moments following the release.
GSK’s year of mixed fortune and optimism for the future
The dip in the 2023 profit was impacted by the company’s decision to establish a dedicated consumer healthcare unit, Haleon, in 2022. Last year’s profit after taxes was $6.2 billion, down significantly from $18.9 billion the previous year. Nevertheless, the adjusted operating profit surged 12% to $ 11.1 billion.
GSK is upbeat about its performance in the medium and long term, with its projected key indicators above analysts’ expectations for growth. The company now estimates that its sales figures for 2031 will reach $48 billion, an upward revision of $6.4 billion from the previous projection.
The Group currently generates 52% of the total revenue from the United States and it sees great potential in its exposure to this market. Furthermore, this is bolstered by the European and International markets, which brings in diversification that can help it absorb local market shocks better.
An increase of $ 1 billion year-over-year brought the company’s Q4 sales to $10.2 billion. The company’s breakthrough RSV vaccine, Arexvy, saw its sales figures rise significantly in the fourth quarter, outperforming analysts’ forecasts. Following the success of its shingles vaccine Shingrix, the company hopes to see even more growth in sales and earnings.