GSK plc (GSK) Bundle
A Brief History of GSK
Company Overview
GSK plc, or GlaxoSmithKline, is a global healthcare company headquartered in Brentford, UK. As of 2024, GSK focuses on pharmaceuticals, vaccines, and consumer healthcare products.
Financial Performance
For the first half of 2024, GSK reported a total turnover of £15,247 million, representing an 8% increase compared to £14,129 million in H1 2023. The core operating profit for the same period was £4,956 million, a 16% increase from £4,262 million in H1 2023.
Segment Performance
The following table summarizes GSK's performance by segment for Q2 2024 compared to Q2 2023:
| Segment | Q2 2024 Turnover (£m) | Q2 2023 Turnover (£m) | Growth (%) |
|---|---|---|---|
| Commercial Operations | 7,884 | 7,178 | 10 |
| Research and Development | (1,413) | (1,273) | 11 |
| Core Operating Profit | 2,513 | 2,170 | 16 |
Acquisitions and Investments
In 2024, GSK announced the acquisition of Aiolos Bio, Inc. for a total consideration of £800 million, with additional success-based milestone payments. Additionally, GSK acquired Elsie Biotechnologies for up to £40 million.
Debt and Equity
As of June 30, 2024, GSK reported total net debt of £13,960 million, reduced from £15,040 million at the beginning of the year. The company's equity rose to £13,770 million, up from £12,795 million at the end of 2023.
Dividend Policy
GSK's board expects to declare a dividend of 15p per share for Q2 2024 and a total of 60p for the full year.
Market Outlook
For 2024, GSK anticipates a turnover increase of 7% to 9% and core operating profit growth of 11% to 13%. The company continues to adapt to the post-COVID-19 market landscape, with expectations for no further pandemic-related sales.
Research and Development Focus
GSK continues to invest heavily in R&D, with £2,721 million spent in H1 2024. The company is particularly focused on vaccines, respiratory diseases, and oncology.
Financial Highlights
The following table provides a summary of GSK's key financial metrics for H1 2024:
| Metric | H1 2024 (£m) | H1 2023 (£m) | Growth (%) |
|---|---|---|---|
| Total Turnover | 15,247 | 14,129 | 8 |
| Core Operating Profit | 4,956 | 4,262 | 16 |
| Profit After Tax | 2,385 | 3,376 | -29 |
Conclusion on Performance
GSK remains committed to enhancing its portfolio through strategic acquisitions, strong R&D investment, and maintaining a healthy financial position despite challenges in the global market.
A Who Owns GSK plc (GSK)
Major Shareholders
As of 2024, GSK plc has a diversified ownership structure, with significant holdings by institutional investors and individual shareholders. The largest shareholders are as follows:
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| The Vanguard Group | 8.20% | Institutional Investor |
| BlackRock, Inc. | 7.75% | Institutional Investor |
| Capital Group Companies | 5.60% | Institutional Investor |
| State Street Corporation | 4.50% | Institutional Investor |
| Fidelity Management & Research | 3.80% | Institutional Investor |
| Individual Shareholders | 40.00% | Retail Investors |
| Others | 30.15% | Various |
Institutional Ownership Trends
Institutional ownership has seen a steady increase over the past few years, reflecting confidence in GSK's strategic direction and financial performance. The following data outlines the institutional ownership percentages over recent years:
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 75.00% |
| 2022 | 76.50% |
| 2023 | 78.00% |
| 2024 | 78.50% |
Executive and Management Ownership
As of June 2024, GSK's executive management team and board of directors collectively hold approximately 0.85% of the company's shares. This includes:
| Position | Name | Shares Owned |
|---|---|---|
| CEO | Emma Walmsley | 1.5 million |
| CFO | Iain Mackay | 1.2 million |
| Chairman | Sir Jonathan Symonds | 0.5 million |
| Other Executives | Various | ~3 million |
Recent Changes in Share Ownership
In 2024, GSK has experienced notable changes in its shareholder composition due to strategic acquisitions and divestitures. The company divested its remaining stake in Haleon, which significantly impacted its liquidity and shareholder structure:
- Divested stake in Haleon: £2.3 billion realized in cash.
- Acquisition of Aiolos Bio, Inc.: £800 million paid, impacting share distribution.
- Acquisition of Elsie Biotechnologies: £40 million cash consideration.
Conclusion of Ownership Structure
GSK's ownership structure is characterized by strong institutional backing and significant retail participation. As the company continues to execute its strategic objectives, shareholder dynamics may evolve further.
GSK plc (GSK) Mission Statement
Overview of Mission Statement
The mission of GSK plc (GSK) is centered on the commitment to improving the health and well-being of people around the world. GSK aims to deliver innovative medicines, vaccines, and consumer healthcare products that meet the diverse needs of patients and consumers globally. The company emphasizes the importance of scientific research and development to drive breakthroughs in healthcare.
Strategic Focus Areas
- Innovation: GSK invests significantly in R&D to discover and develop new medicines and vaccines. The focus is on therapeutic areas such as respiratory diseases, HIV, and oncology.
- Access: GSK is committed to making healthcare accessible to all, ensuring that its products reach those in need.
- Sustainability: GSK integrates sustainability into its business practices, aiming to reduce its environmental impact while enhancing social responsibility.
Financial Performance Highlights (2024)
GSK's financial performance reflects its dedication to its mission, showcasing robust growth in key areas:
| Metric | Q2 2024 | H1 2024 | Growth (Q2 2024 vs Q2 2023) | Growth (H1 2024 vs H1 2023) |
|---|---|---|---|---|
| Turnover | £7,884 million | £15,247 million | +10% | +8% |
| Core Operating Profit | £2,513 million | £4,956 million | +16% | +16% |
| Total Operating Profit | £1,646 million | £3,136 million | -23% | -26% |
| Earnings Per Share (EPS) | 28.8p | 54.5p | -28% | -29% |
| Free Cash Flow | £328 million | £617 million | -6% | +81% |
Research and Development Investment
In 2024, GSK has continued to prioritize R&D, with a focus on late-stage investments in key therapeutic areas:
| Therapeutic Area | Q2 2024 R&D Spend | H1 2024 R&D Spend | Growth (Year-over-Year) |
|---|---|---|---|
| Infectious Diseases | £500 million | £1,000 million | +12% |
| Respiratory/Immunology | £400 million | £800 million | +14% |
| Oncology | £300 million | £600 million | +15% |
Market Presence and Global Reach
GSK operates in over 100 countries, with significant market shares in both developed and emerging markets. The company continues to expand its footprint through strategic partnerships and acquisitions, enhancing its ability to innovate and deliver healthcare solutions globally.
Conclusion of Financial Metrics
GSK's strong financial performance and commitment to innovation underline the effectiveness of its mission statement. The company's focus on R&D, accessibility, and sustainability reflects its goals to improve global health outcomes and meet the evolving needs of patients and consumers.
How GSK plc (GSK) Works
Company Overview
GSK plc (GSK) operates as a global healthcare company focused on pharmaceuticals, vaccines, and consumer healthcare. As of 2024, GSK continues to evolve its business strategy, emphasizing research and development (R&D) to drive innovation across its therapeutic areas.
Financial Performance
In Q2 2024, GSK reported a total turnover of £7,884 million, reflecting a growth of 10% year-over-year. The year-to-date turnover reached £15,247 million, representing an 8% increase.
| Financial Metrics | Q2 2024 | Year to Date 2024 |
|---|---|---|
| Turnover (£m) | 7,884 | 15,247 |
| Core Operating Profit (£m) | 2,513 | 4,956 |
| Total Operating Profit (£m) | 1,646 | 3,136 |
| Net Profit After Tax (£m) | 1,304 | 2,385 |
| Earnings Per Share (p) | 28.8 | 54.5 |
Segment Performance
GSK's operations are divided into two main segments: Commercial Operations and R&D. The Commercial Operations segment has demonstrated robust growth, particularly in Specialty Medicines and Vaccines.
| Segment | Q2 2024 Turnover (£m) | Growth (%) |
|---|---|---|
| Commercial Operations | 7,884 | 10 |
| Vaccines | 1,672 | 2 |
| Specialty Medicines | 4,147 | 15 |
| General Medicines | 2,065 | 7 |
Research and Development (R&D) Investments
GSK's commitment to R&D is critical for maintaining its competitive edge. In Q2 2024, R&D expenses amounted to £1,477 million, which is an increase of 10% compared to the previous year.
| R&D Metrics | Q2 2024 (£m) | Growth (%) |
|---|---|---|
| R&D Expenses | 1,477 | 10 |
| Core R&D Expenses | 1,415 | 8 |
Cash Flow Analysis
Cash generated from operations for Q2 2024 was £1,650 million, with a free cash flow of £328 million. The year-to-date cash generated from operating activities totaled £2,776 million, indicating a strong cash position.
| Cash Flow Metrics | Q2 2024 (£m) | H1 2024 (£m) |
|---|---|---|
| Cash Generated from Operations | 1,650 | 2,776 |
| Free Cash Flow | 328 | 617 |
Debt and Liquidity Position
As of June 30, 2024, GSK's net debt was £13,960 million, down from £15,040 million at the end of 2023. This reduction was primarily due to free cash inflow and proceeds from the disposal of investments.
| Debt Metrics | 30 June 2024 (£m) | 31 December 2023 (£m) |
|---|---|---|
| Net Debt | 13,960 | 15,040 |
| Gross Debt | 16,943 | 18,205 |
| Cash and Liquid Investments | 2,983 | 3,165 |
Taxation
The effective tax rate for GSK in Q2 2024 was 12.8%. The core tax rate was approximately 17.9% for the year to date, reflecting the new global minimum corporate income tax rules implemented in January 2024.
| Tax Metrics | Q2 2024 (£m) | Year to Date 2024 (£m) |
|---|---|---|
| Total Tax Expense | 191 | 465 |
| Core Tax Expense | 423 | 827 |
Outlook and Guidance
GSK has raised its guidance for 2024, expecting turnover to increase by 7% to 9% and core operating profit growth of 11% to 13%. Core earnings per share are projected to rise between 10% to 12%.
| Guidance Metrics | 2024 Projection |
|---|---|
| Turnover Growth (%) | 7% to 9% |
| Core Operating Profit Growth (%) | 11% to 13% |
| Core EPS Growth (%) | 10% to 12% |
How GSK plc (GSK) Makes Money
Revenue Streams
GSK generates revenue from various segments including Vaccines, Specialty Medicines, and General Medicines. In Q2 2024, total sales reached £7.9 billion, reflecting a growth of 13% compared to the previous year.
| Segment | Q2 2024 Sales (£m) | Growth (%) |
|---|---|---|
| Vaccines | 1,672 | 1% |
| Specialty Medicines | 3,962 | 22% |
| General Medicines | 2,250 | 12% |
Core Operating Profit
Core operating profit for Q2 2024 was £2.5 billion, an increase of 18% year-over-year. This growth was driven by strong sales and a favorable product mix.
| Metric | Q2 2024 (£m) | Q2 2023 (£m) | Growth (%) |
|---|---|---|---|
| Core Operating Profit | 2,513 | 2,170 | 16% |
| Core EPS | 43.4p | 38.8p | 12% |
Research and Development (R&D)
GSK invests significantly in R&D, totaling £2.9 billion for the first half of 2024, with a focus on areas such as infectious diseases, oncology, and respiratory diseases. This investment is aimed at developing new therapies and vaccines.
Cost Structure
The company's cost of sales in Q2 2024 was £2.1 billion, leading to a gross profit of £5.8 billion. Selling, general and administrative expenses amounted to £2.5 billion.
| Cost Type | Q2 2024 (£m) | Q2 2023 (£m) |
|---|---|---|
| Cost of Sales | 2,122 | 1,932 |
| SG&A | 2,465 | 2,268 |
Market Performance
In the first half of 2024, GSK's turnover reached £15.2 billion, reflecting an 8% increase year-over-year. The company expects a turnover increase of 7% to 9% for the full year 2024.
Future Guidance
GSK anticipates core operating profit growth between 11% and 13% for 2024, driven by continued strong performance in Specialty Medicines and Vaccines.
| Guidance Metric | 2024 Forecast |
|---|---|
| Turnover Growth | 7% - 9% |
| Core Operating Profit Growth | 11% - 13% |
| Core EPS Growth | 10% - 12% |
Cash Flow and Debt Management
Cash generated from operations in Q2 2024 was £1.7 billion, with free cash flow at £0.3 billion. As of June 30, 2024, GSK's net debt was £13.96 billion, down from £15.04 billion at the end of 2023.
| Cash Flow Metrics | Q2 2024 (£m) | H1 2024 (£m) |
|---|---|---|
| Cash Generated from Operations | 1,650 | 2,776 |
| Free Cash Flow | 328 | 617 |
| Net Debt | 13,960 | 15,040 |
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Article updated on 8 Nov 2024
Resources:
- GSK plc (GSK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GSK plc (GSK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GSK plc (GSK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.