GSK(GSK) - 2025 Q4 - Annual Report

Financial Performance - Total sales for 2025 reached £32.7 billion, representing a 4% increase at AER and a 7% increase at CER[6] - Total operating profit surged to £7.9 billion, reflecting a growth of over 100% due to lower legal expenses and higher operating income[6] - Core operating profit increased by 11% to £9.8 billion, driven by growth in Specialty Medicines and Vaccines, alongside improved SG&A productivity[6] - GSK expects 2026 turnover growth between 3% to 5%, with core operating profit and core EPS both anticipated to grow by 7% to 9%[9] - Total turnover for 2025 reached £32,667 million, representing a 4% increase at AER and a 7% increase at CER, with Q4 2025 turnover at £8,618 million, up 6% at AER and 8% at CER[48] - Operating profit for 2025 was £7,932 million, a significant increase of 97% at AER and over 100% at CER, with Q4 2025 operating profit at £1,100 million, up 58% at AER and 65% at CER[63] - Core operating profit for 2025 was £9,783 million, reflecting a 7% increase at AER and an 11% increase at CER, with Q4 2025 core operating profit at £1,634 million, up 14% at AER and 18% at CER[50] - Total earnings per share (EPS) for 2025 was 141.1p, showing a greater than 100% increase, while Q4 2025 EPS was 15.8p, up 56%[69] - Core EPS for 2025 was 172.0p, an 8% increase, with Q4 2025 Core EPS at 25.5p, up 10%[69] Sales Growth by Segment - Specialty Medicines sales grew to £13.5 billion, up 17%, with significant contributions from Oncology (+43%) and Respiratory, Immunology & Inflammation (+18%)[6] - Respiratory, Immunology & Inflammation sales reached £3,810 million in 2025, growing by 15% year-over-year and 18% in Q4 2025, driven by Nucala and Benlysta[23] - Nucala sales grew at a double-digit rate globally, with US sales accelerating in Q4 2025 following its recent launch in COPD, despite ongoing pricing pressures[24] - Benlysta sales totaled £1,773 million in 2025, reflecting a 19% increase year-over-year and a 22% increase in Q4 2025, driven by strong demand and volume growth[25] - Oncology sales reached £1,977 million in 2025, with a 40% year-over-year growth, primarily driven by Jemperli and Ojjaara/Omjjara[26] - Jemperli sales grew to £861 million in 2025, marking an 84% increase year-over-year, supported by FDA and EMA approvals expanding its indication[27] - Vaccines sales totaled £9,157 million in 2025, with a 2% increase year-over-year, driven by strong demand for Shingrix and Meningitis vaccines[30] - Shingrix sales grew by 42% in Europe for the year, reflecting strong uptake and expanded public funding across several countries[31] - US sales of Shingrix decreased by 17% in 2025 due to challenges in activating unvaccinated consumers, with a cumulative immunization rate of 44%[33] - General Medicines sales were £10,036 million in 2025, reflecting a 4% decline year-over-year, with Trelegy sales growing by 11%[37] Research and Development - Research and development expenses totaled £7,525 million for 2025, an 18% increase at AER and 19% at CER, with Q4 2025 R&D expenses at £2,350 million, up 16% at AER and 17% at CER[55] - Five major FDA approvals were achieved in 2025, including Blenrep and Nucala for COPD, enhancing the product pipeline[10] - GSK has submitted regulatory applications for multiple products, including bepirovirsen for chronic hepatitis B in the US, EU, CN, and JP[89] - Anticipated pipeline milestones include regulatory decisions for depemokimab in H1 2026, indicating ongoing investment in R&D[88] - GSK completed the acquisition of IDRx, Inc. for a total consideration of US$1.1 billion (£840 million) and potential additional payments of up to US$150 million (£119 million) based on regulatory milestones[194] - GSK acquired BP Asset IX, Inc. for US$1.2 billion (£906 million) with additional success-based regulatory milestone payments of up to US$800 million (£588 million)[195] Shareholder Returns and Financial Management - GSK has initiated a £2 billion share buyback program, with £1.4 billion executed to date[14] - The company declared a dividend of 18p for Q4 2025 and expects to increase it to 70p for the full year 2026[13] - Cash generated from operations for 2025 was £8,943 million, an increase from £7,861 million in 2024, with Q4 2025 cash generation at £2,689 million[73] - Free cash inflow for 2025 was £4,029 million, a 41% increase from £2,863 million in 2024, with Q4 2025 free cash inflow at £960 million[77] - Dividends paid to shareholders increased to £2,564 million in 2025 from £2,444 million in 2024, a rise of 4.9%[141] Legal and Regulatory Matters - The effective tax rate for total results was 15.0% for 2025, while the core tax rate was 17.1%[66] - The Group's aggregate provision for legal and other disputes was £210 million as of 31 December 2025, a decrease from £1,446 million in 2024[160] - Significant legal charges and divestments included £367 million ($500 million) from settlements related to mRNA patent issues[123] Corporate Social Responsibility and Sustainability - GSK's commitment to responsible business includes making vaccines and medicines available at sustainable prices, with a focus on underserved populations[92] - GSK has pledged £6 million to the Global Fund to strengthen community-led responses to HIV, tuberculosis, and malaria, matched by the Gates Foundation for a total of £12 million[96] - GSK retained its position on the CDP 2025 A List for Climate Change and Water, ranking in the top 4% of companies assessed[96] - GSK's commitment to a net zero, nature-positive planet includes ambitious goals set for 2030 and 2045[92] Financial Position and Assets - Total assets increased to £61,118 million in 2025, up from £59,463 million in 2024, representing a growth of 2.8%[138] - Total equity increased to £15,956 million in 2025, up from £13,086 million in 2024, representing a growth of 21.6%[138] - Cash and cash equivalents at the end of 2025 were £3,397 million, down from £3,870 million at the end of 2024, a decrease of 12.2%[142] - The net surplus on the Group's pension plans improved to £229 million at 31 December 2025 from a net deficit of £103 million at 31 December 2024[188] Market Position and Future Outlook - GSK's 2031 sales outlook is projected to exceed £40 billion, supported by ongoing R&D investments and product launches[10] - The company plans to continue expanding its product offerings and market presence, focusing on innovative therapies and strategic acquisitions[143]