FX.co ★ GSK Q1 Pretax Profit Declines; Updates 2024 Guidance

GlaxoSmithKline (GSK) has reported a pre-tax profit of £1.35 billion for the first quarter, a 29% decrease in actual exchange rates (AER), or an 18% drop in constant exchange rates (CER). The per-share earnings are down 30% in AER or a 19% decline in CER, standing at 25.7 pence. Conversely, the core operating profit showed growth, reaching £2.44 billion, a 17% increase in AER or a 27% boost in CER. Moreover, the core earnings per share went up to 43.1 pence, a 16% rise in AER or a 28% increase in CER.

The first-quarter turnover was £7.36 billion, a 6% growth in AER, or a 10% increase in CER. The same figures stood when excluding the impact of COVID, but with an 8% growth in AER, or a 13% increase in CER. As for the future, GSK is betting on 2024 turnover growth towards the upper part of the range between 5% and 7%. The company also revised its core operating profit growth prediction from 7%-10% to 9%-11%. Lastly, the core earnings per share (EPS) growth got updated from the previous 6%-9% to a new estimate of 8%-10%.

For the first quarter, GSK plans to declare a 15 pence dividend per share, with an outlook of 60 pence for the complete year.