GSK Reports Strong Q1 2025 Results, Reaffirms Full-Year Guidance
Why we think this is good
The Q1 2025 results from GSK show moderate revenue growth, strong cash generation, and a reasonable valuation. While the RNS mentions some 'challenging market conditions', the overall tone is positive, with the company reaffirming its full-year guidance. The key highlights are the 4% constant currency revenue growth in Q1, the more than doubling of free cash flow, and the company's confidence in delivering its 2025 targets.
Key Points
- Q1 2025 turnover up 4% on a constant currency basis
- Free cash flow more than doubled year-over-year to £697 million
- Company reaffirmed full-year 2025 guidance for 3-5% turnover growth and 6-8% core operating profit growth
- Valuation appears reasonable with a price-to-sales ratio of 1.93x
Summary
GSK plc reported its Q1 2025 results, with turnover increasing 4% on a constant currency basis compared to the prior year period. The company generated strong cash flow, with free cash flow more than doubling year-over-year to £697 million. GSK also reaffirmed its full-year 2025 guidance, expecting turnover growth of 3-5% and core operating profit growth of 6-8%. The company's valuation appears reasonable, with a price-to-sales ratio of 1.93x based on annualized Q1 turnover.