Gsk Plc · LSE:GSK
Gsk — Q1 2025 Earnings Presentation
41 slides from Gsk's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Results
30 April 2025 Q1 2025 Results Conference call and webcast for investors and analysts gsk.com
Slide 2: Agenda
Agenda Q1 2025 performance on track Emma Walmsley Performance: growth drivers Luke Miels and David Redfern Q1 2025 financial performance Julie Brown Summary and Q&A Emma Walmsley, Luke Miels, David Redfern, Julie Brown and Tony Wood 2
Slide 3: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation may contain forward-looking statements. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly t
Slide 4: Q1 2025 performance on track
Q1 2025 performance on track Emma Walmsley, Chief Executive Officer 4
Slide 5: 2025 performance on track Highlights
2025 performance on track Highlights Sales Core operating profit Strong Q1 performance demonstrates £7.5bn £2.5bn quality, strength and resilience of portfolio Q1 sales performance driven by Specialty +4% +5% Medicines (+17%) 2 FDA approvals with 3 more anticipated Core EPS Cash generated from this
Slide 6: Pipeline progress delivering future growth opportunities
Pipeline progress delivering future growth opportunities Progress on five FDA Prioritising investment in pipeline & targeted BD approvals expected in 2025 Generating data to advance new specialty medicines Blenrep Nucala COPD FDA Approval MATINEE data & • R&D focused on 14 key opportunities expected
Slide 7: Confident in commitments to growth
Confident in commitments to growth 2025 Guidance at CER 2021-2026 Outlook 2031 Outlook • Sales growth: 3-5% • >7% Sales CAGR1 • >£40bn Sales by 2031 • Core OP growth: 6-8% • >11% core OP CAGR1 • Continued focus on margin • Core EPS growth: 6-8% improvement, with broadly • >31% core OP margin stable
Slide 8: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer David Redfern, President Corporate Development and Chairman, ViiV Healthcare 8
Slide 9: Q1 growth led by Specialty Medicines momentum
Q1 growth led by Specialty Medicines momentum Sales contribution by product area Sales contribution by region Specialty Medicines Vaccines General Medicines US Europe International 8,000 +13% +4% 8000 +13% +4% 7,000 7000 6,000 +19% +17% 6000 +14% +4% Sales (£m) Sales (£m) 5,000 5000 4,000 4000 +22%
Slide 10: Specialty Medicines
Specialty Medicines Continued momentum across all therapy areas Sales contribution by disease area Respiratory, Immunology and Inflammation (RI&I) £804m • Benlysta £359m up 39% with strong demand in all regions RI&I Oncology HIV • Nucala £444m up 21% reflecting continued demand 3,500 Oncology £415m
Slide 11: Specialty Medicines: three new growth engines
Specialty Medicines Three new growth engines in oncology and respiratory this year Blenrep in oncology Nucala in COPD4 Depemokimab in respiratory • >£3bn PYS1 • 3rd leading cause of death worldwide, • >£3bn PYS1 affects >300m people globally • Approved in UK and ready to launch; • Filed in all major
Slide 12: HIV: 7% growth in Q1 2025 fueled by INSTI-led innovation
HIV: 7% growth in Q1 2025 fueled by gold-standard INSTI1-led innovation Continued momentum across LAI2 portfolio Q1 2025 +7% sales £1,714m: strong demand and Global HIV treatment and performance of the long-acting portfolio, PrEP4 market sizes 400 delivering 100% of HIV growth 350 • Dovato +19% (£57
Slide 13: HIV: Strong progress across next-generation INSTI-led pipeline
HIV: Strong progress across next-generation INSTI1-led treatment pipeline 3 new INSTIs1 in development | 5 launches planned by 2030 Three pipeline assets Regimen Asset showcased at CROI2, all with Q6M3 treatment Treatment Q4M5 2027 CAB ULA + RPV6 potential: • VH184 - third-generation Q6M3 2028-2030
Slide 14: Vaccines
Vaccines Impacted by known headwinds; strong meningitis sales growth Shingles (Shingrix) £867m Sales contribution by disease area • Ex-US represented 57% of Q1 2025 global sales (+7pp YOY) Shingles Meningitis RSV1 Established Vaccines • ~8% average IZ2 rate across top 10 markets ex-US • 41% cumulati
Slide 15: General Medicines
General Medicines Trelegy delivered strong growth across all regions Respiratory £1,710m Sales contribution by disease area Trelegy £675m • Up 15% with strong volume growth across all regions Respiratory Other General Medicines • SITT1 market leader: #1 brand in asthma and COPD2 globally3 3,000 +1%
Slide 16: Q1 2025 performance
Q1 2025 performance Julie Brown, Chief Financial Officer 16
Slide 17: Operational leverage continues to be delivered through the P&L
Operational leverage continues to be delivered through the P&L Q1 2024 Q1 2025 AER CER Core results £m £m % % Sales 7,363 7,516 2 4 Cost of sales (1,733) (1,726) 0 1 Sales +4% & Operating Profit +5% Gross profit 5,630 5,790 3 5 • SG&A +4% excluding impact of the Gross profit margin 76.5% 77.0% +60bp
Slide 18: Q1 2025 core operating margin
Q1 2025 core operating margin Benefits from product mix and increased royalties supporting margin growth 33.7% +30bps 0.2% 33.5% 0.4% 33.2% +130bps 0.3% excl. Zejula 0.1% 1.0% 0.7% 32.2% Q1 2024 Zejula Royalty Q1 2024 Margin Gross SG&A R&D Royalties Q1 2025 Margin Currency Q1 2025 Margin Dispute Cre
Slide 19: Q1 2025 free cash flow up £0.4bn
Q1 2025 free cash flow up £0.4bn Cash generated from operations of £1.3bn, £1.4bn ex Zantac Q1 2025 Q1 2024 Q1 2025 ex-Zantac settlement CGFO £1.3bn, an increase of £0.2bn YOY, Core operating profit 2,443 2,533 2,533 • Increased operating profit Decrease/(Increase) in working capital (311) (788) (78
Slide 20: Capital deployment prioritises business growth and shareholder returns
Capital deployment prioritises business growth and shareholder returns £bn +0.9 0.1 0.1 13.9 0.2 0.6 13.1 1.0 1.1 0.2 Invest for Growth Shareholder Returns 31 Dec 2024 FCF ex-Capex Capex - PP&E Business Dividends to Share Zantac FX and 31 Mar 2025 Net debt & ex Zantac development shareholders 2 Buyb
Slide 21: FY 2025 guidance confirmed
FY 2025 guidance confirmed Delivering operational leverage through continued execution Sales1 Core operating profit1 Core earnings per share1,2 3-5% 6-8% 6-8% Product group sales growth guidance1 P&L modelling considerations1 Specialty Medicines: grow low double digit % Gross margin: benefit from pr
Slide 22: IR Roadmap 2025 to 2026
IR Roadmap 2025 to 2026 H1 2025 H2 2025 2026** Execution • Nucala COPD 1 • Blenrep 2L+ Multiple myeloma • depemokimab SA 7, CRSwNP 2 (US) (launches) • Penmenvy 1st gen • Blujepa uUTI 3 Pipeline • Nucala COPD 1 (US) • depemokimab SA 7, CRSwNP 2 (US) • depemokimab: SA 7, CRSwNP 2 (EU,JP,CN) • Nucala C
Slide 23: Delivering strong and sustained momentum
Delivering strong and sustained momentum On track to deliver 2025 Focused on delivering future Confident in ability to sustain guidance demonstrating growth opportunities and profitable growth through agility, resilience and investing in pipeline & the decade and beyond strength of portfolio targete
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Slide 25: Q1 2025 Total to core operating profit reconciliation
Q1 2025 Total to core operating profit reconciliation Q1 2024 Q1 2025 Key commentary on CER basis Operating profit Operating profit (£m) (£m) Total results 1,490 2,216 +50% at CER Intangible amortisation 196 219 Intangible impairment 54 64 Major restructuring 57 20 ~£1.2bn benefits to date1 Transact
Slide 26: Improved core earnings per share with +5% growth at CER
Improved core earnings per share with +5% growth at CER Q1 2024 Q1 2025 Key commentary on CER basis £m £m Core operating profit (OP) 2,443 2,533 +5% at CER Lower interest on short term financing and higher interest Net finance expense (132) (101) income on cash Share of associates (1) - Tax (404) (4
Slide 27: Quarterly summary of core results
Quarterly summary of core results 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales (£m) 7,363 7,884 8,012 8,117 31,376 7,516 Operating profit (£m) 2,443 2,513 2,761 1,431 9,148 2,533 Operating margin 33.2% 31.9% 34.5% 17.6% 29.2% 33.7% Earnings per share (p) 43.1 43.4 49.7 23.2 159.3 44.9 Core results;
Slide 28: Currency
Currency 2024 currency sales exposure1 2025 core operating profit Currency sensitivity US $ 52% US $: 10 cents movement in the average exchange rate for full year impacts If exchange rates were to hold at the closing rates on core operating profit by approx. +/- 8% 24 April 2025 ($1.33/£1, €1.17/£1
Slide 29: Phasing: 2025 growth still expected to be H2 weighted
Phasing: 2025 growth still expected to be H2 weighted Comparator base: 2024 YOY growth by quarter (CER and ex COVID) Modelling considerations 35% Comparator base in 2024 benefited from a number of items: • Zejula royalty dispute in SG&A ~£70m (Q1) 21% • Sales benefit from RAR1 on Gen Meds (Q2) 13% •
Slide 30: 2025 full year outlook considerations to support modelling
2025 full year outlook considerations to support modelling 2024 Growth 2025 Guidance 2021 – 2026 BIU 2021 – 2026 BIU 2021 – 2026 BIU 2025 assumptions excl. COVID (Feb 25) (2021) (2024) (2025) Turnover 8% 3-5% >5% CAGR >7% CAGR >7% CAGR - Specialty +19% +LDD DD CAGR DD CAGR Low to mid teens - HIV +13
Slide 31: Upcoming pipeline catalysts: 2025 and 2026
Upcoming pipeline catalysts: 2025 and 2026 RI&I Oncology HIV Infectious Diseases H1 2025 H2 2025 2026 Regulatory Nucala: MATINEE, COPD1 US depemokimab: SWIFT-1/2, asthma US depemokimab: SWIFT-1/2, asthma EU. CN, JP decision Blenrep: DREAMM-7/8, 2L+ MM2 JP depemokimab: ANCHOR-1/2, CRSwNP8 US depemoki
Slide 32: 70 potential new vaccines and medicines in pipeline
RI&I 70 potential new vaccines and medicines in pipeline Oncology HIV Infectious Diseases Phase III / Registration ) camlipixant (GSK5464714) P2X3 receptor antagonist Refractory chronic cough 18 depemokimab (GSK3511294) Long-acting anti-IL5 antibody* Asthma^** latozinemab (GSK4527223) Anti-sortilin
Slide 33: 70 potential new vaccines and medicines in pipeline
RI&I 70 potential new vaccines and medicines in pipeline Oncology HIV Infectious Diseases Phase II Benlysta (belimumab) Anti-BLys antibody Systemic sclerosis associated ILD1,2** 26 GSK3915393 TG2 inhibitor* Pulmonary fibrosis GSK4527226 (AL-101) Anti-sortilin antibody* Alzheimer’s disease GSK4532990
Slide 34: 70 potential new vaccines and medicines in pipeline
RI&I 70 potential new vaccines and medicines in pipeline Oncology HIV Infectious Diseases Phase I GSK3862995 Anti-IL33 antibody COPD1 26 GSK3888130 Anti-IL7 antibody* Autoimmune disease GSK4172239 DNMT1 inhibitor* Sickle cell disease GSK4347859 Interferon pathway modulator Systemic lupus erythemato
Slide 35: HIV: Clear roadmap to deliver long-acting innovation
HIV: Clear roadmap to deliver industry leading, competitive long-acting innovation 3 new INSTIs1 in development | 5 launches planned by 2030 2020: Cabenuva Q4M: Self-administered Cabenuva COM Q4M: file and Self-administered: first approval registrational registrational study patent expiry launch fil
Slide 36: Changes since Q4 2024
RI&I Changes since Q4 2024 Oncology HIV Infectious Diseases Changes on pipeline Pipeline events in the quarter New to Phase II Regulatory decisions Ojjaara/Omjjara (momelotinib): JAK1, JAK2 and ACVR1 inhibitor, MDS1 Blenrep: DREAMM-7/8, 2L+ MM2 UK Blujepa: EAGLE-2/3, uUTI3 US Penmenvy: MenABCWY 1st
Slide 37: Glossary
Glossary ADC Antibody drug conjugate CRR Complete response rate GMMA Generalised Modules for Membrane Antigens ADPKD Autosomal dominant polycystic kidney disease CRSwNP Chronic rhinosinusitis with nasal polyps GSI Gamma secretase inhibitor AE Adverse event CRT Cisplatin plus radiotherapy HA Healthy
Slide 38: Glossary
Glossary MDI Metered dose inhaler MDI Metered dose inhaler SRR Seroresponse rate MM Multiple myeloma PD-L1 Programmed death ligand SSc-ILD Systemic sclerosis associated interstitial lung disease MMR Measles, mumps and rubella PFS Progression-free survival STING Stimulator of interferon genes MMRV Me
Slide 39: Assumptions and basis of preparation related to 2025 guidance and outlooks
Assumptions and basis of preparation related to 2025 guidance, 2021-26 and 2031 outlooks In outlining the guidance for 2025, and outlooks for the period 2021-26 and for 2031, the Group has made certain assumptions about the macro-economic environment, the healthcare sector (including regarding exist
Slide 40: Use of GSK conference call, webcast and presentation slides
Use of GSK conference call, webcast and presentation slides The GSK plc webcast, conference call and presentation slides (together the ‘GSK materials’) are for your personal, non-commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make available to the public, sel
Slide 41: gsk.com
gsk.com