UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the month of April 2023
 
Commission File Number 001-15170
 
 
GSK plc
(Translation of registrant's name into English)
 
 
980 Great West Road, Brentford, Middlesex, TW8 9GS
(Address of principal executive office)
 
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F . . . .X. . . . Form 40-F . . . . . . . .
 
 
 
GSK momentum continues with strong start to 2023
 
Q1 2023 performance highlights:
●
Sales performance reflected lower COVID-19 solutions sales versus Q1 2022. Excluding COVID-19 solutions, sales grew +10% CER with strong performance across Vaccines, Specialty and General Medicines
●
Key growth drivers included Shingrix for shingles, meningitis vaccines, oral two-drug regimen and long-acting HIV medicines, Benlysta in immunology, Nucala and Trelegy in respiratory, which combined contributed more than 40% of sales
●
Total operating profit and total EPS performance reflected the comparison to Q1 2022 which included the one-off income benefit of the Gilead settlement and higher Xevudy sales
●
Adjusted operating profit was stable at CER, predominately reflecting a 5% adverse impact following expected lower COVID-19 solutions sales and 4% from legal provisions primarily relating to royalties
●
Adjusted EPS increased +7% CER due to lower non-controlling interests, a lower effective tax rate, and strong sales growth excluding lower COVID-19 solutions (which impacted performance by 7%)
●
Cash generated from operations £0.3 billion; free cash outflow (£0.7) billion lower than Q1 2022 primarily due to Gilead settlement income received in Q1 2022 and timing of profit share payments
●
Full-year 2023 guidance affirmed. Dividend of 14p declared for Q1 2023. 56.5p expected for the full-year 2023
 
 
Q1 2023
 
£m
 
% AER
 
% CER
 
 
 
 
 
 
Vaccines
2,041 
 
22 
 
15 
Specialty Medicines
2,236 
 
(29)
 
(33)
General Medicines
2,674 
 
12 
 
9 
 
 
 
 
 
 
Turnover
6,951 
 
(3)
 
(8)
 
 
 
 
 
 
Turnover excluding COVID-19 solutions
6,819 
 
16 
 
10 
 
 
 
 
 
 
Total operating profit
2,082 
 
(9)
 
(15)
 
 
 
 
 
 
Total continuing EPS
36.8p
 
(1)
 
(8)
 
 
 
 
 
 
Total EPS
36.8p
 
(18)
 
(23)
 
 
 
 
 
 
Adjusted operating profit
2,092 
 
8 
 
- 
 
 
 
 
 
 
Adjusted operating margin %
30.1%
 
3.1 ppts
 
2.5 ppts
 
 
 
 
 
 
Adjusted EPS
37.0p
 
15 
 
7 
 
 
 
 
 
 
Cash generated from operations
287 
 
(88)
 
 
Free cash outflow
(689)
 
>(100)
 
 
 
(Financial Performance - Q1 2023 results unless otherwise stated, growth % and commentary at CER)
 
R&D delivery and targeted business development support future growth
●
Innovative pipeline of 68 vaccines and specialty medicines based on the science of immune system with 17 in Phase III/registration; four anticipated 2023 approvals (daprodustat in anaemia due to chronic kidney disease, RSV older adults vaccine, momelotinib in myelofibrosis and Jemperli in first-line endometrial cancer)
●
Four positive phase III/IV data readouts in Q1 2023, including pentavalent Meningitis ABCWY vaccine candidate; gepotidacin for uncomplicated urinary tract infections; Jemperli for first-line endometrial cancer and Cabenuva for HIV treatment
●
Proposed acquisition of Bellus Health – provides access to camlipixant, potential best-in-class and highly selective P2X3 antagonist currently in phase III development for treatment of refractory chronic cough; exclusive license agreement signed with Scynexis for Brexafemme, a US FDA approved, first-in-class antifungal for treatment of vulvovaginal candidiasis
 
Emma Walmsley, Chief Executive Officer, GSK:
“We have made a strong start to 2023, with excellent performance across Vaccines, Specialty and General Medicines. We are very focused on our upcoming launches, including our potential RSV older adult vaccine, and on continuing to strengthen our pipeline – both organically with several positive late-stage read-outs already this year, and through targeted business development. This continued momentum is also supporting our confidence in delivering our medium and long-term growth ambitions.”
 
The Total results are presented in summary above and on page 6 and Adjusted results reconciliations are presented on pages 18 and 19. Adjusted results are a non-IFRS measure excluding discontinued operations and other adjustments that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. Adjusted results are defined on page 16 and £% or AER% growth, CER% growth, free cash flow, turnover excluding COVID-19 solutions and other non-IFRS measures are defined on page 44, COVID-19 solutions are defined on page 44. GSK provides guidance on an Adjusted results basis only, for the reasons set out on page 16. All expectations, guidance and targets regarding future performance and dividend payments should be read together with ‘Guidance, assumptions and cautionary statements’ on pages 45 and 46.
 
The Q1 2022 comparative results are restated from those previously published to reflect the demerger of Consumer Healthcare in July 2022 see page 33.
 
 
 
2023 guidance
The Company affirms its full-year 2023 guidance at constant exchange rates (CER). All expectations and full-year growth rates exclude any contributions from COVID-19 solutions:
 
  Turnover is expected to increase between 6 to 8 per cent
  Adjusted operating profit is expected to increase between 10 to 12 per cent
  Adjusted earnings per share is expected to increase between 12 to 15 per cent
 
Taking Q1 2023 performance and the latest expectations for Q2 2023 into account, GSK now expects first half and second half turnover growth to be broadly similar and for General Medicines to be broadly flat to slightly down this year. GSK expects Adjusted operating profit growth to be lower in the first half of 2023 and higher in the second half, relative to full-year expectations.
 
Despite the recovery of healthcare systems, uncertain economic conditions prevail across many markets in which GSK operates and we continue to expect to see variability in performance between quarters.
 
This guidance is supported by the following turnover expectations for full year 2023 at CER:
 
  Vaccines – expected increase of mid-teens per cent in turnover
  Specialty Medicines – expected increase of mid to high single-digit per cent in turnover
  General Medicines – expected to be broadly flat to slightly down
 
Adjusted Operating profit is expected to grow between 10 to 12 per cent at CER reflecting Cost of sales and R&D increasing at a rate slightly below turnover, while SG&A is anticipated to increase at a rate broadly aligned to turnover, reflecting targeted support for launches and potential launches including the RSV older adult candidate vaccine. Adjusted earnings per share is expected to increase between 12 to 15 per cent at CER reflecting favourable net finance costs and non-controlling interests plus an expected lower tax rate, at around 15%.
 
Additional commentary
Dividend policies and expected pay-out ratios remain unchanged for GSK. The future dividend policies and guidance regarding the expected dividend pay-out in 2023 for GSK are provided on page 30.
 
COVID-19 solutions
In Q1 2023, turnover decreased by 8% at CER reflecting the comparison to Q1 2022, which included £1,307 million of COVID-19 solutions sales in the period. Excluding COVID-19 solutions, turnover increased by 10% at CER. In Q1 2023, Adjusted Operating profit was stable at CER reflecting a 5% adverse impact from expected lower COVID-19 solutions sales. Based on known binding agreements with governments, GSK does not anticipate further significant COVID-19 pandemic-related sales or operating profit in 2023. Consequently, the Company now expects full-year 2023 turnover growth to be impacted by approximately 9%, with Adjusted Operating profit growth being reduced between 5% to 6% versus the prior year.
 
All expectations, guidance and targets regarding future performance and dividend payments should be read together with ‘Guidance, assumptions and cautionary statements’ on pages 45 and 46. If exchange rates were to hold at the closing rates on 31 March 2023 ($1.24/£1, €1.14/£1 and Yen 165/£1) for the rest of 2023, the estimated impact on 2023 Sterling turnover growth for GSK would be stable and if exchange gains or losses were recognised at the same level as in 2022, the estimated impact on 2023 Sterling Adjusted Operating Profit growth for GSK would be -1%.
 
Results presentation
A conference call and webcast for investors and analysts of the quarterly results will be hosted by Emma Walmsley, CEO, at 12pm GMT on 26 April 2023. Presentation materials will be published on www.gsk.com prior to the webcast and a transcript of the webcast will be published subsequently.
 
Notwithstanding the inclusion of weblinks, information available on the Company’s website, or from non GSK sources, is not incorporated by reference into this Results Announcement.
 
 
Performance: turnover
 
Turnover
 
Q1 2023
 
 
 
 
 
 
 
 
 
£m
 
Growth
£%
 
Growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
Shingles
 
833
 
19 
 
11 
Meningitis
 
280
 
32 
 
25 
Influenza
 
12
 
(33)
 
(28)
Established Vaccines
 
815
 
10 
 
4 
 
 
 
 
 
 
 
 
 
 
 
Vaccines excluding COVID-19 solutions
 
1,940
 
16 
 
9 
COVID-19 solutions: Pandemic vaccines
 
101
 
100 
 
100 
 
 
 
 
 
 
 
 
 
 
 
 
Vaccines
 
2,041
 
22 
 
15 
 
 
 
 
 
 
 
 
 
 
 
 
HIV
 
1,468
 
24 
 
15 
Immunology/Respiratory and Other
 
601
 
16 
 
9 
Oncology
 
136
 
7 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Medicines excluding COVID-19 solutions
 
2,205
 
21 
 
13 
 
 
 
 
 
 
 
 
 
 
 
 
COVID-19 solutions: Xevudy
 
31
 
(98)
 
(98)
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Medicines
 
2,236
 
(29)
 
(33)
 
 
 
 
 
 
 
 
 
 
 
 
Respiratory
 
1,767
 
15 
 
10 
Other General Medicines
 
907
 
7 
 
7 
 
 
 
 
 
 
 
 
 
 
 
 
General Medicines
 
2,674
 
12 
 
9 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
6,951
 
(3)
 
(8)
 
 
 
 
 
 
 
 
 
 
 
 
Total excluding COVID-19 solutions
 
6,819
 
16 
 
10 
 
 
 
 
 
 
 
 
 
 
 
 
By Region:
 
 
 
 
 
 
US
 
3,270
 
(9)
 
(17)
Europe
 
1,704
 
3 
 
(2)
International
 
1,977
 
2 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
6,951
 
(3)
 
(8)
 
 
 
 
 
 
 
Turnover excluding COVID-19 solutions is a non-IFRS measure defined on page 44 with the reconciliation to the IFRS measure Turnover included in the table above.
 
 
 
£m
AER
CER
Vaccines
Total
Q1 23
2,041
22%
15%
Excluding COVID-19 solutions
Q1 23
1,940
16%
9%
Vaccines grew in all regions. Key growth drivers were geographical expansion and market growth for Shingrix, and inclusion in National Immunisation Programmes for Bexsero. Pandemic vaccines sales reflected GSK’s share of 2023 contracted European volumes related to a COVID-19 booster vaccine co-developed with Sanofi. 

Shingles
 
Q1 23
833
19%
11%
 
Shingrix, a vaccine against herpes zoster (shingles), grew in International and Europe reflecting new launch uptake, demand and favourable pricing mix. US sales were primarily impacted by unfavourable wholesaler and distributor inventory movements. Shingrix is now available in 31 countries.
 
Meningitis
 
Q1 23
280
32%
25%
 
Strong growth in Meningitis vaccines was primarily driven by Bexsero, our vaccine against meningitis B, which grew in Europe mainly from inclusion in National Immunisation Programmes and in International due to an increase in demand ahead of an anticipated price increase. Menveo, our vaccine against meningitis strains ACWY, grew in the US primarily due to initial public stocking of the new liquid formulation and Center for Disease Control (CDC) purchasing patterns.
 
Established Vaccines
 
Q1 23
815
10%
4%
 
Established Vaccines grew mainly in Hepatitis vaccines resulting from continued travel market recovery in Europe and International, and due to CDC purchasing patterns in the US. Rotarix, a vaccine to protect infants against rotavirus, grew in the US primarily driven by initial stocking of the new liquid formulation by the CDC. Synflorix, our 10-valent vaccine for pneumococcal disease, declined in the quarter reflecting phasing of public market supply and lower demand related to decreased birth cohorts in International.
 
 
 
£m
AER
CER
Specialty Medicines
Total
Q1 23
2,236
(29%)
(33%)
Excluding COVID-19 solutions
Q1 23
2,205
21% 
13% 
 
Specialty Medicines growth reflected consistent performance, with HIV, Oncology and Immunology/Respiratory and Other all growing. In the quarter, there were minimal sales of Xevudy contrasting with strong sales in Q1 2022, resulting in a drag of 46 (CER) percentage points.
 
HIV
 
Q1 23
1,468
24%
15%
 
The performance of HIV benefited from strong patient demand for Oral two-drug regimen (Oral 2DR) and Long Acting medicines which contributed approximately two-thirds of the growth. US pricing favourability contributed approximately one-third of growth, in part driven by favourable prior period Returns and Rebates (RAR) adjustments in Q1 2023. The inventory build in Q4 2022 has been slow to deplete, with less than one-third reducing in this quarter, the remainder is expected to reduce by the half year.
 
Oral 2DR and Long Acting
 
Q1 23
697
62%
51%
 
Oral 2DR (Dovato, Juluca) and Long Acting medicines (Cabenuva, Apretude) sales represented 47% of the total HIV portfolio compared to 36% in Q1 2022. Growth was primarily driven by sales of Dovato and Cabenuva.
 
Immunology/Respiratory and Other
 
Q1 23
601
16%
9%
 
This therapy area includes sales of Benlysta and Nucala, and also sales of Duvroq (Daprodustat) in Japan. Daprodustat launch in US is expected in the second half of the year.
 
Benlysta
 
Q1 23
253
18%
9%
 
Benlysta, a monoclonal antibody treatment for Lupus, continues to show consistent growth representing strong underlying demand in US and Europe. This growth was partially offset in the quarter by the impact of wholesaler inventory movements in US and International regions.
 
Nucala
 
Q1 23
347
18%
11%
 
Nucala, is a IL-5 antagonist monoclonal antibody treatment for severe asthma, with additional indications including chronic rhinosinusitis with nasal polyps, eosinophilic granulomatosis with polyangiitis (EGPA) and hypereosinophilic syndrome (HES). Growth in the quarter reflected patient demand in severe eosinophilic asthma and for the new indications with ongoing launches. This growth was partially offset in the US by the impact of inventory depletion and an unfavourable prior period RAR adjustment.
 
Oncology
 
Q1 23
136
7%
2%
 
Oncology growth was driven by Zejula in Europe and Jemperli in US and Europe. Blenrep growth in Europe was offset by the impact of withdrawal from the US market in November 2022.
 
Zejula
 
Q1 23
114
16%
10%
 
Growth of Zejula, a PARP inhibitor treatment for ovarian cancer, was driven by Europe and International markets. In the US, first line indication growth was more than offset by reduction in use in second line following the update to US prescribing information agreed with the FDA in Q4 2022.
 
 
 
£m
AER
CER
General Medicines
 
Q1 23
2,674
12%
9%
 
Growth driven by both Respiratory and Other General Medicines categories, driven by ongoing demand for Trelegy in all regions in addition to a strong allergy season in Japan and continued post pandemic recovery of the antibiotic market in Europe and International regions.
 
Respiratory
 
Q1 23
1,767
15%
10%
 
Performance reflects strong growth of Trelegy and the single inhaled triple therapy class across all regions. Growth also includes the benefits of a strong allergy season in Japan and the US launch of Flovent authorised generic in Q2 2022. Favourable US prior period RAR adjustments to Seretide/Advair were offset by adverse adjustments to Relvar/Breo in the quarter.
 
Trelegy
 
Q1 23
465
37%
28%
 
Trelegy, is the most prescribed single inhaler triple therapy (SITT) treatment for COPD and asthma. Trelegy grew in the period with strong performance across all regions, reflecting increased patient demand and growth of the SITT market.
 
Seretide/Advair
 
Q1 23
339
12%
8%
 
Seretide/Advair is an ICS/LABA treatment for asthma and COPD. Growth reflected targeted promotion in certain International markets and the benefit of a favourable US prior period RAR adjustment, partially offset by the impact of generic competition in Europe, US and certain International markets.
 
Other General Medicines
 
Q1 23
907
7%
7%
 
High single-digit growth reflected strong post pandemic demand for anti-infectives in Europe and International, with Augmentin growth of 37% AER, 38% CER in the quarter. The impact of ongoing generic competition in this product group is also offset by Avodart and dermatological product growth, predominantly in the International region.
 
 
By Region
 
 
 
 
£m
AER
CER
US
Total
Q1 23
3,270
(9%)
(17%)
 
Excluding COVID-19 solutions
Q1 23
3,270
16% 
6% 
 
In the quarter there was a 23 (CER) percentage point drag due to high sales of Xevudy in Q1 2022, with no COVID-19 solutions sales in Q1 2023. Excluding this effect there was growth in all product groups. Vaccines grew on Established Vaccine market recovery and CDC order phasing, offsetting impact of wholesaler destocking and a strong Q1 2022 comparator on Shingrix growth. Specialty Medicines growth was driven by strong HIV performance. General Medicines growth was driven by ongoing performance of Trelegy within the single inhaled triple therapy class.
 
 
 
 
£m
AER
CER
Europe
Total
Q1 23
1,704
3%
(2%)
Excluding COVID-19 solutions
Q1 23
1,603
19%
14% 
 
In the quarter there was a 16 (CER) percentage point drag due to high sales of Xevudy in Q1 2022, with all product groups growing strongly excluding this effect. Vaccines double digit growth reflected Shingrix launches and uptake, Bexsero national immunisation campaigns in France and Spain and ongoing travel vaccine recovery. Specialty Medicines double digit growth was driven by HIV, Benlysta and Nucala including the impact of new indication launches. General Medicines was driven by Trelegy ongoing growth and Augmentin on strong post pandemic antibiotic demand.
 
 
 
 
£m
AER
CER
International
Total
Q1 23
1,977
2%
2%
Excluding COVID-19 solutions
Q1 23
1,946
13%
14%
 
In the quarter there was a 12 (CER) percentage point drag due to high sales of Xevudy in Q1 2022, with all product groups growing strongly excluding this effect. Vaccines double digit growth was driven by Shingrix uptake in Japan and China and launches in certain other markets. Specialty Medicines grew in HIV, Oncology and Immunology/Respiratory and Other with Nucala delivering strong growth in severe eosinophilic asthma and new indications. General Medicines product group was driven by Respiratory, with Trelegy growth and a strong allergy season in Japan, Other General Medicines was driven by Augmentin on strong post pandemic antibiotic demand.
 
 
Financial performance
 
Total Results
Q1 2023
 
£m
 
% AER
 
% CER
 
 
 
 
 
 
Turnover
6,951 
 
(3)
 
(8)
Cost of sales
(1,943)
 
(28)
 
(30)
Selling, general and administration
(2,143)
 
18 
 
12 
Research and development
(1,260)
 
14 
 
8 
Royalty income
180 
 
30 
 
28 
Other operating income/(expense)
297 
 
 
 
 
 
 
 
 
 
 
Operating profit
2,082 
 
(9)
 
(15)
 
 
 
 
 
 
Net Finance expense
(174) 
 
 
 
 
Share of after tax profit/(loss) of associates and joint ventures
(2)
 
 
 
 
Profit/(loss) on disposal of interest in associates
1 
 
 
 
 
 
 
 
 
 
 
Profit before taxation
1,907 
 
(9)
 
(15)
 
 
 
 
 
 
Taxation
(276)
 
 
 
 
Tax rate %
14.5%
 
 
 
 
 
 
 
 
 
 
Profit after taxation
1,631 
 
(8)
 
(14)
 
 
 
 
 
 
Profit attributable to non-controlling interests
141 
 
 
 
 
Profit attributable to shareholders
1,490 
 
 
 
 
 
 
 
 
 
 
 
1,631 
 
(8)
 
(14)
 
 
 
 
 
 
Earnings per share
36.8p
 
(1)
 
(8)
 
 
 
 
 
 
 
The Total Results are on a continuing basis. The Q1 2022 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 33). Financial Performance - Q1 2023 results unless otherwise stated, growth % and commentary at CER.
 
 
Adjusted results
Reconciliations between Total results and Adjusted results for Q1 2023 and Q1 2022 are set out on pages 18 and 19.
 
 
Q1 2023
 
£m
 
% AER
 
% CER
 
 
 
 
 
 
Turnover
6,951 
 
(3)
 
(8)
 
 
 
 
 
 
Cost of sales
(1,752)
 
(31)
 
(32)
Selling, general and administration
(2,065)
 
17 
 
10 
Research and development
(1,222)
 
12 
 
6 
Royalty income
180 
 
30 
 
28 
 
 
 
 
 
 
Adjusted operating profit
2,092 
 
8 
 
- 
 
 
 
 
 
 
Adjusted profit before taxation
1,920 
 
10 
 
2 
Taxation
(303)
 
6 
 
(2)
 
 
 
 
 
 
Adjusted profit after taxation
1,617 
 
11 
 
3 
 
 
 
 
 
 
Adjusted profit attributable to non-controlling interests
121 
 
 
 
 
Adjusted profit attributable to shareholders
1,496 
 
 
 
 
 
 
 
 
 
 
 
1,617 
 
11 
 
3 
 
 
 
 
 
 
Earnings per share
37.0p
 
15 
 
7 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Cost of sales
Total
 
 
 
 
1,943 
(28%)
(30%)
% of sales
 
 
 
 
28.0%
(9.8%)
(8.9%)
Adjusted
 
 
 
 
1,752 
(31%)
(32%)
 
% of sales
 
 
 
 
25.2%
(9.9%)
(9.1%)
 
The decrease in Total and Adjusted cost of sales as a percentage of sales primarily reflected lower sales of lower margin Xevudy compared to Q1 2022. This was partly offset by an unfavourable comparator to a one-time benefit from inventory adjustments in Q1 2022 as well as higher freight costs.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Selling, general & administration
Total
 
 
 
 
2,143 
18%
12%
% of sales
 
 
 
 
30.8%
5.6%
5.5%
Adjusted
 
 
 
 
2,065 
17%
10%
 
% of sales
 
 
 
 
29.7%
5.1%
4.9%
 
Growth in Total and Adjusted SG&A primarily reflected an increase in legal provisions primarily relating to the Zejula royalty dispute(1) resulting in an increase of 4 ppts and an increased level of launch investment in Specialty Medicines particularly HIV and Vaccines including Shingrix to drive post-pandemic recovery demand and support market expansion. Growth was partly offset by favourable comparison due to impairment provisions relating to Russia and Ukraine in Q1 2022 and the continuing benefit of restructuring and tight control of ongoing costs.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Research & development
Total
 
 
 
 
1,260 
14%
8%
% of sales
 
 
 
 
18.1%
2.8%
2.7%
Adjusted
 
 
 
 
1,222 
12%
6%
 
% of sales
 
 
 
 
17.6%
2.4%
2.4%
 
Growth in Total and Adjusted R&D reflected increased investment across the Vaccines clinical development portfolio, particularly in pneumococcal programmes acquired as part of the Affinivax Inc (Affinivax) acquisition, mRNA technology platforms and the phase II MMR programme.
 
In the Specialty Medicines portfolio, there was increased investment in the early stage research portfolio, particularly CCL17 for osteo arthritic pain and IL18 for atopic dermatitis and in Jemperli, with preparation for new phase II/III trials in rectal and colon cancer as well as the ongoing trials in endometrial cancer. In addition, there was increased investment in momelotinib, a potential new treatment of myelofibrosis patients with anaemia, the phase III respiratory programme for depemokimab, a potential new medicine to treat a range of eosinophil-driven diseases and for bepirovirsen, the study in chronic hepatitis B. These increases in investment were partly offset by decreases related to the completion of late-stage clinical development programmes for otilimab and Cell & Gene therapy and reduced R&D investment in Blenrep versus Q1 2022.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Royalty income
Total
 
 
 
 
180 
30%
28%
 
Adjusted
 
 
 
 
180 
30%
28%
 
Growth in Total and Adjusted royalty income primarily reflected the settlement and licensing agreement with Gilead Sciences Inc. (Gilead) announced on 1 February 2022 and included Gardasil royalty income of £71 million.
 
(1)
See update on Legal matters on page 29.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Other operating (expense)/income
Total
 
 
 
 
297 
(50%)
(52%)
 
The decrease primarily reflected an unfavourable comparison to the upfront income in Q1 2022 of £0.9 billion received from the settlement with Gilead. Net other operating income included an accounting credit of £271 million (Q1 2022: £335 million charge) arising from the remeasurement of contingent consideration liabilities and the liabilities for the Pfizer, Inc. (Pfizer) put option and Pfizer and Shionogi & Co. Ltd (Shionogi) preferential dividends in ViiV Healthcare.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Operating profit
Total
 
 
 
 
2,082 
(9%)
(15%)
% of sales
 
 
 
 
30.0%
(1.9%)
(2.4%)
Adjusted
 
 
 
 
2,092 
8% 
- 
 
% of sales
 
 
 
 
30.1%
3.1% 
2.5% 
 
Total operating profit margin was down 1.9 ppts at AER and 2.4 ppts at CER primarily reflecting an unfavourable comparison due to the £0.9 billion upfront income received from the settlement with Gilead in Q1 2022, partly offset by remeasurement credits on contingent consideration liabilities.
 
Adjusted profit was impacted by lower sales of COVID-19 solutions sales which led to a drag of 5% AER and CER but increased the Adjusted operating profit margin by approximately 3.9 ppts at AER and CER. Excluding COVID-19 Solutions, Adjusted operating profit benefited from strong sales across all three product areas but margin was impacted by increased legal charges in the quarter primarily relating to the Zejula royalty dispute and an unfavourable comparison to a one-time benefit from inventory adjustments in Q1 2022.
 
Contingent consideration cash payments made to Shionogi and other companies reduce the balance sheet liability. Total contingent consideration cash payments in Q1 2023 amounted to £291 million (Q1 2022: £211 million). These included cash payments made to Shionogi of £287 million (Q1 2022: £208 million).
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Adjusted operating profit by business
Commercial Operations
 
 
 
3,375 
8%
1%
% of sales
 
 
 
 
48.6%
5.2%
4.3%
 
R&D
 
 
 
 
(1,232)
13%
6%
 
Commercial Operations Adjusted operating profit reflected lower COVID-19 solutions sales, primarily Xevudy. Sales declined 8% with 19 ppts AER / 18 ppts CER drag from COVID-19 solutions sales. Operating profit margin benefitted from product mix upside (with minimal Xevudy sales) and increased royalty income, partly offset by increased investment in growth and launch assets as well as an increase in legal provisions.
 
The R&D segment operating expenses primarily reflected increased investment in the Vaccines clinical development portfolio, particularly in pneumococcal programmes, the mRNA technology platforms and the phase II MMR programme. This was partly offset by decreases related to the completion of late-stage clinical development programmes for otilimab and Cell & Gene therapy and reduced R&D investment in Blenrep versus Q1 2022.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Net finance costs
Total
 
 
 
 
174 
(12%)
(16%)
Adjusted
 
 
 
 
170 
(14%)
(18%)
 
Total net finance costs decreased by £24 million compared to Q1 2022. Adjusted net finance costs decreased by £28 million compared to Q1 2022. The decrease is mainly driven by the net savings from maturing bonds including the Sterling Notes repurchase in Q4 2022 and higher interest income on cash.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Taxation
Total
 
 
 
 
276 
(15%)
(21%)
Tax rate %
 
 
 
 
14.5%
 
 
Adjusted
 
 
 
 
303 
6% 
(2%)
 
Tax rate %
 
 
 
 
15.8%
 
 
 
The effective tax rate impact is broadly in line with expectations for the quarter. Issues related to taxation are described in Note 14, ‘Taxation’ in the Annual Report 2022. The Group continues to believe it has made adequate provision for the liabilities likely to arise from periods that are open and not yet agreed by relevant tax authorities. The ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of agreements with relevant tax authorities.
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Non-controlling interests
Total
 
 
 
 
141 
(49%)
(53%)
Adjusted
 
 
 
 
121 
(25%)
(32%)
 
The decrease in Total profit from continuing operations allocated to non-controlling interest was primarily due to lower allocation of ViiV Healthcare profits of £140 million (Q1 2022: £227 million), partly offset by decreased credits for remeasurement of contingent consideration liabilities, as well as lower net profits in some of the Group’s other entities with non-controlling interests.
 
The decrease in Adjusted profit from continuing operations allocated to non-controlling interest primarily reflected lower profits in some of the Group’s entities with non-controlling interests partly offset by an increased allocation of ViiV Healthcare profits of £120 million (Q1 2022: £113 million).
 
 
 
 
 
Q1 2023
 
 
 
 
 
 
£m
AER
CER
Earnings per share
Total
 
 
 
 
36.8p
(1%)
(8%)
Adjusted
 
 
 
 
37.0p
15% 
7% 
 
The decrease in Total EPS primarily reflected an unfavourable comparison due to upfront income received from the settlement with Gilead in Q1 2022. This was partly offset by remeasurement credits for contingent consideration liabilities compared to charges in Q1 2022, lower non-controlling interests and lower effective tax rate.
 
Adjusted EPS reflected strong growth in sales across all product areas excluding COVID-19 solutions, higher royalty income, lower non-controlling interests and a lower effective tax rate. This was partly offset by increased legal charges primarily relating to royalties and investment behind launches in Specialty Medicines including HIV and Vaccines plus higher supply chain costs, freight and distribution costs. Decline in lower margin COVID-19 solutions sales was a drag on Adjusted EPS growth of 7 ppts at AER and CER.
 
 
Currency impact on Q1 2023 results
The results for Q1 2023 are based on average exchange rates, principally £1/$1.22, £1/€1.14 and £1/Yen 162. Comparative exchange rates are given on page 31. The period-end exchange rates were £1/$1.24, £1/€1.14 and £1/Yen 165.
 
In Q1 2023, turnover was down 3% at AER and 8% at CER. Total EPS from continuing operations was 36.8p compared with 37.3p in Q1 2022. Adjusted EPS was 37.0p compared with 32.3p in Q1 2022, up 15% at AER and 7% at CER. The favourable currency impact primarily reflected the weakening of Sterling against the US Dollar and the Euro. Exchange gains or losses on the settlement of intercompany transactions had a one percent adverse impact on the eight percentage point favourable currency impact on Adjusted EPS.
 
 
Cash generation
 
Cash flow
 
 
 
 
Q1 2023
£m
 
Q1 2022
£m
 
 
 
 
 
 
Cash generated from operations attributable to
  continuing operations (£m)
 
 
287 
 
2,352 
Cash generated from operations attributable to
  discontinued operations (£m)
 
 
- 
 
403 
 
 
 
 
 
 
Total cash generated from operations (£m)
 
 
287 
 
2,755 
 
 
 
 
 
 
Net cash inflow/(outflow) from operating activities from
  continuing operations (£m)
 
 
53 
 
2,206 
Net cash inflow/(outflow) from operating activities from
  discontinued operations (£m)
 
 
- 
 
336 
 
 
 
 
 
 
Total net cash generated from operating activities (£m)
 
 
53 
 
2,542 
 
 
 
 
 
 
Free cash inflow/(outflow) from continuing operations* (£m)
 
 
(689)
 
1,477 
Free cash flow from continuing operations growth (%)
 
 
>(100)%
 
 
Free cash flow conversion from continuing operations* (%)
 
 
3%
 
96%
Total net debt** (£m)
 
 
(17,950)
 
(19,351)
 
 
 
 
 
 
 
*
Free cash flow from continuing operations and free cash flow conversion are defined on page 44.
**
Net debt is analysed on page 34.
 
Q1 2023
Cash generated from operating activities from continuing operations was £287 million (Q1 2022: £2,352 million). The decrease primarily reflected an unfavourable comparison due to the upfront income from the settlement with Gilead received in Q1 2022, unfavourable timing of profit share payments for Xevudy, increase in seasonal inventory and lower payable balances reflecting increased investment in 2022.
 
Total cash payments to Shionogi in relation to the ViiV Healthcare contingent consideration liability in the quarter were £287 million (Q1 2022: £208 million), all of which was recognised in cash flows from operating activities. These payments are deductible for tax purposes.
 
Free cash outflow was £689 million for the quarter (Q1 2022: £1,477 million inflow). The decrease primarily reflected an unfavourable comparison due to the upfront income from the settlement with Gilead received in Q1 2022, unfavourable timing of profit share payments for Xevudy, increase in seasonal inventory, lower payable balances reflecting increased investment in 2022 and higher tax payments.
 
Total Net debt
At 31 March 2023, net debt was £17,950 million, compared with £17,197 million at 31 December 2022, comprising gross debt of £20,905 million and cash and liquid investments of £2,955 million.
 
Net debt increased by £0.8 billion primarily due to £0.7 billion free cash outflow and dividends paid to shareholders of £0.6 billion. This was partly offset by net favourable exchange impacts of £0.4 billion from the translation of non-Sterling denominated debt and exchange on other financing items and £0.1 billion of income received from equity investments.
 
At 31 March 2023, GSK had short-term borrowings (including overdrafts and lease liabilities) repayable within 12 months of £4,261 million with loans of £1,682 million repayable in the subsequent year.
 
 
Q1 2023 pipeline highlights (since 1 February 2023)
 
 
Medicine/vaccine
 
Trial (indication, presentation)
 
Event
 
Regulatory approvals or other regulatory action
Jesduvroq
ASCEND-D (anaemia of chronic kidney disease on dialysis)
Regulatory approval (US)
Jemperli
GARNET (2L endometrial cancer)
Conversion to regular (full) approval (US)
Regulatory submissions or acceptances
Nucala
Severe asthma
Regulatory acceptance (CN)
Jemperli
RUBY (1L mismatch repair-deficient/microsatellite instability-high (dMMR/MSI-H) endometrial cancer)
Regulatory acceptance (EU)
Phase III data readouts or other significant events
Benlysta
Paediatric systemic lupus erythematosus (sub-cutaneous administration)
Positive phase II data readout
Jemperli
Rectal cancer
US FDA Advisory Committee vote to support phase II trial design
Jemperli
RUBY (1L endometrial cancer)
Phase III data presentation
gepotidacin
EAGLE-2/3 (uncomplicated urinary tract infection)
Phase III data presentation
RSV older adult vaccine candidate
RSV, older adults aged
60+ years
US FDA Advisory Committee vote
MenABCWY (gen 1)
vaccine candidate
Meningitis ABCWY
Positive phase III data readout
 
Anticipated news flow
 
Timing
 
Medicine/vaccine
 
Trial (indication, presentation)
 
Event
 
H1 2023
daprodustat
ASCEND (anaemia of chronic kidney disease)
Regulatory decision
(EU)
Jemperli
RUBY (1L endometrial cancer)
Regulatory submission
(US)
momelotinib
MOMENTUM (myelofibrosis with anaemia)
Regulatory decision (US)
RSV older adult vaccine candidate
RSV, older adults aged
60+ years
Regulatory decision (US)
Shingrix
Shingles, at-risk adults aged 18+ years
Regulatory decision (JP)
H2 2023
bepirovirsen
B-Together (hepatitis B virus)
Phase IIb data readout
Nucala
Nasal polyposis
Regulatory submission
(CN, JP)
Blenrep
DREAMM-7 (2L+ multiple myeloma)
Phase III data readout
Blenrep
DREAMM-8 (2L+ multiple myeloma)
Phase III data readout
Blenrep
DREAMM-7 (2L+ multiple myeloma)
Regulatory submission
(US, EU)
Blenrep
DREAMM-8 (2L+ multiple myeloma)
Regulatory submission
(US, EU)
Jemperli
RUBY (1L endometrial cancer)
Regulatory decision
(US)
Zejula
FIRST (1L maintenance ovarian cancer)
Phase III data readout
cabotegravir
Pre-exposure prophylaxis, long-acting injectable
Regulatory decision (EU)
Vocabria
HIV
Regulatory decision (CN)
gepotidacin
EAGLE-1 (urogenital gonorrhoea)
Phase III data readout
gepotidacin
EAGLE-2/3 (uncomplicated urinary tract infection)
Regulatory submission (EU)
MenABCWY (gen 2)
vaccine candidate
Meningitis ABCWY
Phase II data readout
RSV older adult vaccine candidate
RSV, older adults aged
60+ years
Regulatory decision
(EU, JP)
RSV older adult vaccine candidate
RSV, older adults aged
50-59 years
Phase III data readout
RSV older adult vaccine candidate
RSV, older adults aged
50-59 years
Regulatory submission
(US, EU, JP)
SKYCovione COVID-19 vaccine
COVID-19
Regulatory decision (EU)
2024
linerixibat
GLISTEN (cholestatic pruritus in primary biliary cholangitis)
Phase III data readout
linerixibat
GLISTEN (cholestatic pruritus in primary biliary cholangitis)
Regulatory submission
(US, EU)
Nucala
Severe asthma
Regulatory decision (CN)
Nucala
Nasal polyposis
Regulatory decision (JP)
Nucala
MATINEE (chronic obstructive pulmonary disease)
Phase III data readout
Nucala
MATINEE (chronic obstructive pulmonary disease)
Regulatory submission
(US, EU, CN, JP)
Blenrep
DREAMM-7 (2L+ multiple myeloma)
Regulatory decision
(US, EU)
Blenrep
DREAMM-8 (2L+ multiple myeloma)
Regulatory decision
(US, EU)
cobolimab
COSTAR (non-small cell lung cancer)
Phase III data readout
Jemperli
RUBY (1L dMMR/MSI-H endometrial cancer)
Regulatory decision (EU)
Jemperli
RUBY part 2 (1L endometrial cancer)
Phase III data readout
Jemperli
RUBY part 2 (1L endometrial cancer)
Regulatory submission
(US, EU)
momelotinib
MOMENTUM (myelofibrosis with anaemia)
Regulatory decision (EU)
Zejula
ZEAL (1L maintenance NSCLC)
Phase III data readout
gepotidacin
EAGLE-2/3 (uncomplicated urinary tract infection)
Regulatory decision
(US, EU)
gepotidacin
EAGLE-2/3 (uncomplicated urinary tract infection)
Regulatory submission
(JP)
gepotidacin
EAGLE-1 (urogenital gonorrhoea)
Regulatory submission
(US)
MenABCWY (gen 1)
vaccine candidate
Meningitis ABCWY
Regulatory submission (US)
RSV older adult vaccine candidate
RSV, older adults aged
50-59 years
Regulatory decision
(US, EU, JP)
 
Refer to pages 35 to 43 for further details on several key medicines and vaccines in development by therapy area.
 
 
Trust: progress on our six priority areas for responsible business
Building Trust by operating responsibly is integral to GSK’s strategy and culture. This will support growth and returns to shareholders, reduce risk, and help GSK’s people thrive while delivering sustainable health impact at scale. The Company has identified six Environmental, Social, and Governance (ESG) focus areas that address what is most material to GSK’s business and the issues that matter the most to its stakeholders. Highlights below include activity since Full-year and Q4 2022 results. For a full list of progress in 2022, please see the 2022 ESG Performance Report at: https://gsk.to/3V1hwFk.
 
Access
Commitment: to make GSK’s vaccines and medicines available at value-based prices that are sustainable for the business and implement access strategies that increase the use of GSK’s vaccines and medicines to treat and protect underserved people.
 
Progress to date:
 
●
GSK continues to collaborate to support access to its HIV portfolio. For example, following the signing of a voluntary licensing agreement for cabotegravir for HIV pre-exposure prophylaxis (PrEP) between ViiV Healthcare and the Medicines Patent Pool (MPP) in July 2022, the MPP signed subsequent sub-licence agreements in March 2023 with Aurobindo Pharma Limited, Cipla, Inc. and Viatris, Inc. – through its subsidiary Mylan – to manufacture generic versions of cabotegravir long-acting for PrEP. More information can be found at: https://gsk.to/3LsG72L.
 
 
●
Working with GSK’s partners, more than 1.2 million children in Ghana, Kenya and Malawi have received at least one dose of the Company’s malaria vaccine, Mosquirix (RTS,S/AS01 E). In March 2023, Kenya expanded vaccine use beyond the communities involved in the Malaria Vaccine Immunisation Programme (MVIP), almost doubling the number of areas where children can access it. All three countries that were part of the MVIP have now expanded the rollout.
 
Global health and health security
Commitment: develop novel products and technologies to treat and prevent priority diseases, including pandemic threats.
 
Progress to date:
 
●
GSK remains committed to innovation across medicines and vaccines to help get ahead of antimicrobial resistance, with a number of R&D projects targeting pathogens deemed ‘critical’ or ‘urgent’ by the WHO and US Centers for Disease Control and Prevention. GSK reinforced its commitment to developing new antibiotics in high unmet medical need areas when it presented positive results from the pivotal EAGLE-2 and EAGLE-3 phase III trials for gepotidacin, an investigational, first-in-class oral antibiotic with a novel mechanism of action for uncomplicated urinary tract infections (uUTI) in female adults and adolescents. Escherichia coli (e. coli) bacteria are the main cause of uUTI but it is showing increasing resistance to antibiotics currently used(1). The data were disclosed in an oral presentation at the European Congress of Clinical Microbiology and Infectious Diseases (ECCMID) in Copenhagen, Denmark. More information can be found at: https://gsk.to/40yA5lq.
 
 
●
GSK continued to expand its industry-leading infectious diseases portfolio. In March 2023, the Company entered an exclusive licence agreement for Brexafemme (ibrexafungerp tablets), a US FDA-approved, first-in-class antifungal for treating vulvovaginal candidiasis and for a reduction in the incidence of recurrent VVC. Brexafemme complements GSK’s late-stage antibiotics gepotidacin, and tebipenem, a potential new treatment for complicated urinary tract infections. With rates of multi-drug resistant fungal infections rising, this agreement strengthens the Company’s position as an innovation leader in antimicrobial resistance. More information can be found at: https://gsk.to/3oHAlkx.
 
Environment
Commitment: committed to a net zero, nature-positive, healthier planet with ambitious goals set for 2030 and 2045.
 
Progress to date:
 
●
The Company has clear and measurable targets to achieve its climate and nature goals and shared its annual progress as part of GSK’s ESG Performance Report. The Company also published more detail on its carbon reduction pathway and use of carbon credits, which can be found at: https://gsk.to/3LtovDT.
 
 
●
The Taskforce on Nature-related Financial Disclosures (TNFD) recently released its final beta framework for nature-related risk management and disclosure. GSK sits on the Taskforce, and to pilot the recommendations ahead of the final framework expected later this year, the Company made an initial disclosure, focusing on strategy, metrics and targets in its 2022 Annual Report (page 62). In addition, GSK was included in the TNFD (section 3.1) scenario guidance as an example of a multinational company taking an advanced approach.
 
Diversity, equity and inclusion
Commitment: create a diverse, equitable and inclusive workplace; enhance recruitment of diverse patient populations in GSK clinical trials; and support diverse communities.
 
Progress to date:
 
●
Appropriate clinical research representation is critical for advancing the Company’s understanding of new vaccines and medicines to ensure they positively impact patients' lives. GSK announced results from a 17-year retrospective study on US clinical trial diversity in February 2023. Results of the study demonstrate real-world disease epidemiology data, compared to the conventional standard of US Census data, is a better benchmark to ensure clinical trial enrolment reflects the populations affected by diseases. GSK has committed to applying insights from the study and collaborating with regulators, patients, academics, and other biopharmaceutical companies to make meaningful progress on clinical trial diversity. As a result, 100% of phase III trials now include a demographic plan. More information can be found at: https://gsk.to/40IAGkE.  
 
 
 
●
GSK is committed to equality of representation so that its workforce reflects the communities in which it operates and hires, and that GSK leadership reflects the Company’s workforce. In February 2023, GSK communicated its 2022 progress which was also highlighted in the ESG Performance Report:
 
 
 
 
-
Women held 42% of Vice President (VP) and above roles globally, compared with 40% in 2021, bringing the Company closer to its 2025 aspirational target of 45%; Women made up 47% of all employees in 2022 and 50% of all management roles.
 
 
 
 
-
In the US, GSK has 31.3% of ethnically diverse leaders at the VP level and above and has met its 2025 aspirational target of at least 30%.
 
 
 
 
-
In the UK, the Company has 14.3% of ethnically diverse leaders at VP and above, progressing towards its 2025 aspirational target of reaching at least 18%.
 
Ethical standards
Commitment: promote ethical behaviour across GSK’s business by supporting its employees to do the right thing and working with suppliers that share the Company’s standards and operate responsibly.
 
●
Performance metrics related to ethical standards are updated annually with details from the most recent year on page 26 of GSK’s ESG Performance Report 2022.
 
Product governance
Commitment: maintain robust quality and safety processes and responsibly use data and new technologies.
 
●
Performance metrics related to product governance are updated annually with details from the most recent year on page 30 of GSK’s ESG Performance Report 2022.
 
ESG rating performance
Detailed below is how GSK performs in key ESG ratings.
 
External benchmark
 
2020
 
2021
 
2022
 
Comments
 
S&P Global’s Corporate Sustainability Assessment(2)
87
 
2nd in Pharma industry
88
 
1st in Pharma industry
86
 
2nd in Pharma industry(2)
 
Access to Medicines Index
4.23
 
Ranked 1st
n/a
4.06
 
Ranked 1st
Led the bi-annual index since its inception in 2008
Antimicrobial resistance benchmark
86%
 
Ranked 1st
84%
 
Ranked 1st
n/a
Led the bi-annual benchmark since inception
CDP Climate Change
A-
A-
A-
 
CDP Water Security
A
B
B
 
CDP Forests(3) (palm oil)
n/a
B
A-
 
CDP Forests(3) (timber)
n/a
B
B
 
CDP supplier engagement rating
Leader
Leader
Leader
 
Sustainalytics
21.3
 
8th in Pharma
sub-industry group
18.9
 
5th in Pharma sub-industry group
18.8
 
3rd in Pharma sub-industry group
Lower score represents lower risk
MSCI
AA
AA
AA
 
Moody’s ESG solutions
62
2nd in Pharma and Biotech sector
61
2nd in Pharma and Biotech sector
n/a
 
ISS Corporate Rating
B
B+
B+
 
FTSE4Good
Member
Member
Member
Member since 2004
ShareAction’s Workforce Disclosure Initiative (WDI)
68%
 
Sector average: 65%
75%
 
Sector average: 70%
77%
 
Sector average: 66%
 
 
(1)
WHO. Global priority list of antibiotic-resistant bacteria to guide research, discovery, and development of new antibiotics. 2017; CDC. Antibiotic resistance threats in the United States. 2019. Available from: https://www.cdc.gov/drugresistance/pdf/threats-report/2019-ar-threats-report-508.pdf (Accessed October 2022)
(2)
As at 31 March 2023.
(3)
CDP Forests assessments introduced in 2021.
 
 
Contents
Page
Q1 2023 pipeline highlights
11
ESG
13
Total and Adjusted results
16
Income statement
21
Statement of comprehensive income
22
Balance sheet
23
Statement of changes in equity
24
Cash flow statement – three months ended 31 March 2023
25
Sales tables – three months ended 31 March 2023
26
Segment information
28
Legal matters
29
Returns to shareholders
30
Additional information
31
Net assets
32
Discontinued operations
33
Reconciliation of cash flow to movements in net debt
34
Net debt analysis
34
Free cash flow reconciliation
34
R&D commentary
35
Reporting definitions
44
Guidance, assumptions and cautionary statements
45
Independent Auditor’s review report to GSK plc
47
 
Contacts
 
GSK plc (LSE/NYSE:GSK) is a global biopharma company with a purpose to unite science, technology, and talent to get ahead of disease together. Find out more at www.gsk.com.
 
GSK enquiries:
 
 
 
Media
Tim Foley
+44 (0) 20 8047 5502
(London)
 
Kathleen Quinn
+1 202 603 5003
(Washington)
 
 
 
 
Investor Relations
Nick Stone
+44 (0) 7717 618834
(London)
 
James Dodwell
+44 (0) 7881 269066
(London)
 
Mick Readey
+44 (0) 7990 339653
(London)
 
Joshua Williams
+44 (0) 7385 415719
(London)
 
Jeff McLaughlin
+1 215 589 3774
(Philadelphia)
 
Frances De Franco
+1 215 751 4855
(Philadelphia)
 
 
 
 
 
 
 
 
 
 
 
 
Registered in England & Wales:
No. 3888792
 
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
 
 
Total and Adjusted results
 
Total reported results represent the Group’s overall performance.
 
GSK also uses a number of adjusted, non-IFRS, measures to report the performance of its business. Adjusted results and other non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS. Adjusted results are defined below and other non-IFRS measures are defined on page 44.
 
GSK believes that Adjusted results, when considered together with Total results, provide investors, analysts and other stakeholders with helpful complementary information to understand better the financial performance and position of the Group from period to period, and allow the Group’s performance to be more easily compared against the majority of its peer companies. These measures are also used by management for planning and reporting purposes. They may not be directly comparable with similarly described measures used by other companies.
 
GSK encourages investors and analysts not to rely on any single financial measure but to review GSK’s quarterly results announcements, including the financial statements and notes, in their entirety.
 
GSK is committed to continuously improving its financial reporting, in line with evolving regulatory requirements and best practice. In line with this practice, GSK expects to continue to review and refine its reporting framework.
 
Adjusted results exclude the profits from discontinued operations from the Consumer Healthcare business (see details on page 33) and the following items in relation to our continuing operations from Total results, together with the tax effects of all of these items:
 
●
amortisation of intangible assets (excluding computer software and capitalised development costs)
●
impairment of intangible assets (excluding computer software) and goodwill
●
major restructuring costs, which include impairments of tangible assets and computer software, (under specific Board approved programmes that are structural, of a significant scale and where the costs of individual or related projects exceed £25 million), including integration costs following material acquisitions
●
transaction-related accounting or other adjustments related to significant acquisitions
●
proceeds and costs of disposal of associates, products and businesses; significant settlement income; significant legal charges (net of insurance recoveries) and expenses on the settlement of litigation and government investigations; other operating income other than royalty income, and other items
 
Costs for all other ordinary course smaller scale restructuring and legal charges and expenses from continuing operations are retained within both Total and Adjusted results.
 
As Adjusted results include the benefits of Major restructuring programmes but exclude significant costs (such as significant legal, major restructuring and transaction items) they should not be regarded as a complete picture of the Group’s financial performance, which is presented in Total results. The exclusion of other Adjusting items may result in Adjusted earnings being materially higher or lower than Total earnings. In particular, when significant impairments, restructuring charges and legal costs are excluded, Adjusted earnings will be higher than Total earnings.
 
GSK has undertaken a number of Major restructuring programmes in response to significant changes in the Group’s trading environment or overall strategy or following material acquisitions. Within the Pharmaceuticals sector, the highly regulated manufacturing operations and supply chains and long lifecycle of the business mean that restructuring programmes, particularly those that involve the rationalisation or closure of manufacturing or R&D sites are likely to take several years to complete. Costs, both cash and non-cash, of these programmes are provided for as individual elements are approved and meet the accounting recognition criteria. As a result, charges may be incurred over a number of years following the initiation of a Major restructuring programme.
 
Significant legal charges and expenses are those arising from the settlement of litigation or government investigations that are not in the normal course and materially larger than more regularly occurring individual matters. They also include certain major legacy matters.
 
Reconciliations between Total and Adjusted results, providing further information on the key Adjusting items, are set out on pages 18 and 19.
 
GSK provides earnings guidance to the investor community on the basis of Adjusted results. This is in line with peer companies and expectations of the investor community, supporting easier comparison of the Group’s performance with its peers. GSK is not able to give guidance for Total results as it cannot reliably forecast certain material elements of the Total results, particularly the future fair value movements on contingent consideration and put options that can and have given rise to significant adjustments driven by external factors such as currency and other movements in capital markets.
 
ViiV Healthcare
ViiV Healthcare is a subsidiary of the Group and 100% of its operating results (turnover, operating profit, profit after tax) are included within the Group income statement.
 
Earnings are allocated to the three shareholders of ViiV Healthcare on the basis of their respective equity shareholdings (GSK 78.3%, Pfizer 11.7% and Shionogi 10%) and their entitlement to preferential dividends, which are determined by the performance of certain products that each shareholder contributed. As the relative performance of these products changes over time, the proportion of the overall earnings allocated to each shareholder also changes. In particular, the increasing proportion of sales of dolutegravir and cabotegravir-containing products has a favourable impact on the proportion of the preferential dividends that is allocated to GSK. Adjusting items are allocated to shareholders based on their equity interests. GSK was entitled to approximately 83% of the Total earnings and 82% of the Adjusted earnings of ViiV Healthcare for 2022.
 
As consideration for the acquisition of Shionogi’s interest in the former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi received the 10% equity stake in ViiV Healthcare and ViiV Healthcare also agreed to pay additional future cash consideration to Shionogi, contingent on the future sales performance of the products being developed by that joint venture, dolutegravir and cabotegravir. Under IFRS 3 ‘Business combinations’, GSK was required to provide for the estimated fair value of this contingent consideration at the time of acquisition and is required to update the liability to the latest estimate of fair value at each subsequent period end. The liability for the contingent consideration recognised in the balance sheet at the date of acquisition was £659 million. Subsequent remeasurements are reflected within other operating income/(expense) and within Adjusting items in the income statement in each period.
 
Cash payments to settle the contingent consideration are made to Shionogi by ViiV Healthcare each quarter, based on the actual sales performance and other income of the relevant products in the previous quarter. These payments reduce the balance sheet liability and hence are not recorded in the income statement. The cash payments made to Shionogi by ViiV Healthcare in Q1 2023 were £287 million.
 
As the liability is required to be recorded at the fair value of estimated future payments, there is a significant timing difference between the charges that are recorded in the Total income statement to reflect movements in the fair value of the liability and the actual cash payments made to settle the liability.
 
Further explanation of the acquisition-related arrangements with ViiV Healthcare are set out on pages 71 and 72 of the Annual Report 2022.
 
 
Adjusting items
The reconciliations between Total results and Adjusted results for Q1 2023 and Q1 2022 are set out below.
 
Three months ended 31 March 2023
 
 
Total
results
£m
 
Intangible
amort-
isation
£m
 
Intangible
impair-
ment
£m
 
Major
restruct-
uring
£m
 
Trans-
action-
related
£m
 
Divest-
ments,
significant
legal and
other
items
£m
 
Adjusted
results
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
6,951 
 
 
 
 
 
 
 
 
 
 
 
6,951 
Cost of sales
(1,943)
 
151 
 
 
 
35 
 
 
 
5 
 
(1,752)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
5,008 
 
151 
 
 
 
35 
 
 
 
5 
 
5,199 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administration
(2,143)
 
 
 
 
 
69 
 
 
 
9 
 
(2,065)
Research and development
(1,260)
 
18 
 
16 
 
4 
 
 
 
 
 
(1,222)
Royalty income
180 
 
 
 
 
 
 
 
 
 
 
 
180 
Other operating income/(expense)
297 
 
 
 
 
 
 
 
(271)
 
(26)
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit
2,082 
 
169 
 
16 
 
108 
 
(271)
 
(12)
 
2,092 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net finance cost
(174)
 
 
 
 
 
 
 
 
 
4 
 
(170)
Share of after tax profit/(loss) of associates
  and joint venture
(2)
 
 
 
 
 
 
 
 
 
 
 
(2)
Profit/(loss) on disposal of interest in associates
1 
 
 
 
 
 
 
 
 
 
(1)
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit before taxation
1,907 
 
169 
 
16 
 
108 
 
(271)
 
(9)
 
1,920 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxation
(276)
 
(36)
 
(4)
 
(22)
 
15 
 
20 
 
(303)
Tax rate %
14.5%
 
 
 
 
 
 
 
 
 
 
 
15.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from continuing
  operations
1,631 
 
133 
 
12 
 
86 
 
(256)
 
11 
 
1,617 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to non-controlling
  interests from continuing operations
141 
 
- 
 
- 
 
- 
 
(20)
 
- 
 
121 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to shareholders from
  continuing operations
1,490 
 
133 
 
12 
 
86 
 
(236)
 
11 
 
1,496 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,631 
 
133 
 
12 
 
86 
 
(256)
 
11 
 
1,617 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share from continuing operations
36.8p
 
3.3p
 
0.3p
 
2.1p
 
(5.8)p
 
0.3p
 
37.0p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of shares (millions)
4,044 
 
 
 
 
 
 
 
 
 
 
 
4,044 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended 31 March 2022(a)
 
 
Total
results
£m
 
Profit from
discon-
tinued
operations
£m
 
Intangible
amort-
isation
£m
 
Intangible
impair-
ment
£m
 
Major
restruct-
uring
£m
 
Trans-
action-
related
£m
 
Divest-
ments,
significant
legal and
other
items
£m
 
Adjusted
results
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
7,190 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,190 
Cost of sales
(2,717)
 
 
 
163 
 
 
 
15 
 
12 
 
 
 
(2,527)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
4,473 
 
 
 
163 
 
 
 
15 
 
12 
 
 
 
4,663 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administration
(1,812)
 
 
 
 
 
 
 
28 
 
 
 
14 
 
(1,770)
Research and development
(1,103)
 
 
 
23 
 
(16)
 
8 
 
 
 
 
 
(1,088)
Royalty income
138 
 
 
 
 
 
 
 
 
 
 
 
 
 
138 
Other operating income/(expense)
597 
 
 
 
 
 
 
 
 
 
335 
 
(932)
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit
2,293 
 
 
 
186 
 
(16)
 
51 
 
347 
 
(918)
 
1,943 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net finance cost
(198)
 
 
 
 
 
 
 
 
 
 
 
 
 
(198)
Share of after tax profit/(loss) of associates and joint venture
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit before taxation
2,094 
 
 
 
186 
 
(16)
 
51 
 
347 
 
(918)
 
1,744 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxation
(323)
 
 
 
(39)
 
3 
 
(12)
 
(53)
 
137 
 
(287)
Tax rate %
15.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
16.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from
  continuing operations
1,771 
 
 
 
147 
 
(13)
 
39 
 
294 
 
(781)
 
1,457 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from
  discontinued operations and other
  gains/(losses) from the demerger
396 
 
(396)
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from
  discontinued operations
396 
 
(396)
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total profit after taxation
  for the period
2,167 
 
(396)
 
147 
 
(13)
 
39 
 
294 
 
(781)
 
1,457 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to non-controlling
  interest from continuing operations
275 
 
 
 
 
 
 
 
 
 
(114)
 
 
 
161 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to shareholders
  from continuing operations
1,496 
 
 
 
147 
 
(13)
 
39 
 
408 
 
(781)
 
1,296 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to non-controlling
  interest from discontinued
  operations
90 
 
(90)
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to shareholders
  from discontinued operations
306 
 
(306)
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,167 
 
(396)
 
147 
 
(13)
 
39 
 
294 
 
(781)
 
1,457 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total profit attributable to
  non-controlling interests
365 
 
(90)
 
 
 
 
 
 
 
(114)
 
 
 
161 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total profit attributable to
  shareholders
1,802 
 
(306)
 
147 
 
(13)
 
39 
 
408 
 
(781)
 
1,296 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,167 
 
(396)
 
147 
 
(13)
 
39 
 
294 
 
(781)
 
1,457 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share from continuing
  operations
37.3p
 
 
 
3.7p
 
(0.3)p
 
1.0p
 
10.2p
 
(19.6)p
 
32.3p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share from
  discontinued operations
7.6p
 
(7.6)p
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings per share
44.9p
 
(7.6)p
 
3.7p
 
(0.3)p
 
1.0p
 
10.2p
 
(19.6)p
 
32.3p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number
  of shares (millions)
4,016 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
The Q1 2022 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business
(see page 33) and the impact of Share Consolidation implemented on 18 July 2022 (see page 33).
 
 
Major restructuring and integration
 
Total Major restructuring charges from continuing operations incurred in Q1 2023 were £108 million (Q1 2022: £51 million), analysed as follows:
 
 
Q1 2023
 
Q1 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
£m
 
Non-
cash
£m
 
Total
£m
 
Cash
£m
 
Non-
cash
£m
 
Total
£m
 
 
 
 
 
 
 
 
 
 
 
 
Separation Preparation restructuring
  programme
37
 
47
 
84
 
11
 
37
 
48
Significant acquisitions
21
 
1
 
22
 
-
 
-
 
-
Legacy programmes
-
 
2
 
2
 
2
 
1
 
3
 
 
 
 
 
 
 
 
 
 
 
 
 
58
 
50
 
108
 
13
 
38
 
51
 
 
 
 
 
 
 
 
 
 
 
 
 
The Separation Preparation programme incurred cash charges of £37 million primarily from the restructuring of some administrative functions as well as Global Supply Chain and R&D. The non-cash charges of £47 million primarily reflected the write-down of assets in administrative as well as manufacturing locations.
 
The benefit in Q1 2023 from restructuring programmes was £0.1 billion, primarily relating to the Separation Preparation restructuring programme. The programme has delivered £0.9 billion of annual savings to date and targets to deliver £1.0 billion by 2023, with total costs estimated at £2.4 billion, of which £1.6 billion is expected to be cash costs.
 
Costs of significant acquisitions relate to integration costs of Sierra Oncology Inc. (Sierra) and Affinivax which were acquired in Q3 2022.
 
Transaction-related adjustments
Transaction-related adjustments from continuing operations resulted in a net credit of £271 million (Q1 2022: £347 million charge) all of which related to accounting (credits)/charge for the remeasurement of contingent consideration liabilities and the liabilities for the Pfizer put option and Pfizer and Shionogi preferential dividends in ViiV Healthcare.
 
Charge/(credit)
Q1 2023
£m
 
Q1 2022
£m
 
 
 
 
Contingent consideration on former Shionogi-ViiV Healthcare joint Venture
  (including Shionogi preferential dividends)
(64)
 
256
ViiV Healthcare put options and Pfizer preferential dividends
(105)
 
32
Contingent consideration on former Novartis Vaccines business
(69)
 
44
Contingent consideration on acquisition of Affinivax
(33)
 
-
Other adjustments
- 
 
15
 
 
 
 
Total transaction-related charges
(271)
 
347
 
 
 
 
 
The £64 million credit relating to the contingent consideration for the former Shionogi-ViiV Healthcare joint venture represented a reduction in the valuation of the contingent consideration due to Shionogi, as a result of a credit of £172 million primarily from exchange rates as well as sales forecasts, partly offset by the unwind of the discount for £108 million. The £105 million credit relating to the ViiV Healthcare put option and Pfizer preferential dividends represented a reduction in the valuation of the put option primarily as a result of updated exchange rates as well as updated sales forecasts and lower cash balances.
 
The ViiV Healthcare contingent consideration liability is fair valued under IFRS. An explanation of the accounting for the non-controlling interests in ViiV Healthcare is set out on page 17.
 
The £69 million credit relating to the contingent consideration on the former Novartis Vaccines business primarily relates to changes to future sales forecasts.
 
Divestments, significant legal charges, and other items
Divestments, significant legal charges and other items primarily included dividend and distribution income received from investments partly offset by fair value loss of £65 million on the retained stake in Haleon.
 
 
Financial information
 
Income statements
 
 
 
 
 
Q1 2023
£m
 
Q1 2022(a)
£m
 
 
 
 
 
 
 
TURNOVER
 
 
 
6,951 
 
7,190 
 
 
 
 
 
 
 
Cost of sales
 
 
 
(1,943)
 
(2,717)
 
 
 
 
 
 
 
Gross profit
 
 
 
5,008 
 
4,473 
 
 
 
 
 
 
 
Selling, general and administration
 
 
 
(2,143)
 
(1,812)
Research and development
 
 
 
(1,260)
 
(1,103)
Royalty income
 
 
 
180 
 
138 
Other operating income/(expense)
 
 
 
297 
 
597 
 
 
 
 
 
 
 
 
OPERATING PROFIT
 
 
 
2,082 
 
2,293 
 
 
 
 
 
 
 
Finance income
 
 
 
29 
 
7 
Finance expense
 
 
 
(203)
 
(205)
Share of after tax profit/(loss) of associates and joint ventures
 
 
 
(2)
 
(1)
Profit/(loss) on disposal of interests in associates
 
 
 
1 
 
- 
 
 
 
 
 
 
 
PROFIT BEFORE TAXATION
 
 
 
1,907 
 
2,094 
 
 
 
 
 
 
 
Taxation
 
 
 
(276)
 
(323)
Tax rate %
 
 
 
14.5%
 
15.4%
 
 
 
 
 
 
 
PROFIT AFTER TAXATION FROM CONTINUING OPERATIONS
 
 
 
1,631 
 
1,771 
 
 
 
 
 
 
 
Profit after taxation from discontinued operations and other gains
  from the demerger
 
 
 
- 
 
396 
PROFIT AFTER TAXATION FROM DISCONTINUED OPERATIONS
 
 
 
- 
 
396 
 
 
 
 
 
 
 
PROFIT AFTER TAXATION FOR THE PERIOD
 
 
 
1,631 
 
2,167 
 
 
 
 
 
 
 
Profit attributable to non-controlling interests from continuing
  operations
 
 
 
141 
 
275 
 
 
 
 
 
 
 
Profit attributable to shareholders from continuing operations
 
 
 
1,490 
 
1,496 
 
 
 
 
 
 
 
Profit attributable to non-controlling interests from discontinued
  operations
 
 
 
- 
 
90 
 
 
 
 
 
 
 
Profit attributable to shareholders from discontinued operations
 
 
 
- 
 
306 
 
 
 
 
 
 
 
 
 
 
 
1,631 
 
2,167 
 
 
 
 
 
 
 
Profit attributable to non-controlling interests
 
 
 
141 
 
365 
Profit attributable to shareholders
 
 
 
1,490 
 
1,802 
 
 
 
 
 
 
 
 
 
 
 
1,631 
 
2,167 
 
 
 
 
 
 
 
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
 
 
36.8p
 
37.3p
 
 
 
 
 
 
 
EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS
 
 
 
- 
 
7.6p
 
 
 
 
 
 
 
TOTAL EARNINGS PER SHARE
 
 
 
36.8p
 
44.9p
 
 
 
 
 
 
 
Diluted earnings per share from continuing operations
 
 
 
36.5p
 
36.9p
 
 
 
 
 
 
 
Diluted earnings per share from discontinued operations
 
 
 
- 
 
7.5p
 
 
 
 
 
 
 
Total diluted earnings per share
 
 
 
36.5p
 
44.4p
 
 
 
 
 
 
 
 
(a)
The Q1 2022 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business
(see page 33) and the impact of Share Consolidation implemented on 18 July 2022 (see page 33).
 
 
Statement of comprehensive income
 
 
 
 
 
Q1 2023
£m
 
Q1 2022(a)
£m
 
 
 
 
 
 
 
Total profit for the period
 
 
 
1,631 
 
2,167 
 
 
 
 
 
 
 
Items that may be reclassified subsequently to continuing operations income statement:
 
 
 
 
 
 
Exchange movements on overseas net assets and net investment
  hedges
 
 
 
87 
 
(19)
Reclassification of exchange movements on liquidation or disposal
  of overseas subsidiaries and associates
 
 
 
(3)
 
- 
Fair value movements on cash flow hedges
 
 
 
- 
 
2 
Reclassification of cash flow hedges to income statement
 
 
 
1 
 
(1)
 
 
 
 
 
 
 
 
 
 
 
85 
 
(18)
 
 
 
 
 
 
 
Items that will not be reclassified to continuing operations income statement:
 
 
 
 
 
 
Exchange movements on overseas net assets of non-controlling
  interests
 
 
 
(14)
 
3 
Fair value movements on equity investments
 
 
 
(168)
 
(543)
Tax on fair value movements on equity investments
 
 
 
22 
 
47 
Remeasurement gains/(losses) on defined benefit plans
 
 
 
350 
 
313 
Tax on remeasurement losses/(gains) on defined benefit plans
 
 
 
(87)
 
(73)
 
 
 
 
 
 
 
 
 
 
 
103 
 
(253)
 
 
 
 
 
 
 
Other comprehensive expense for the period from continuing
  operations
 
 
 
188 
 
(271)
 
 
 
 
 
 
 
Other comprehensive income for the period from discontinued
  operations
 
 
 
- 
 
435 
 
 
 
 
 
 
 
Total comprehensive income for the period
 
 
 
1,819 
 
2,331 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income for the period attributable to:
 
 
 
 
 
 
  Shareholders
 
 
 
1,692 
 
1,962 
  Non-controlling interests
 
 
 
127 
 
369 
 
 
 
 
 
 
 
 
 
 
 
1,819 
 
2,331 
 
 
 
 
 
 
 
 
(a)
The Q1 2022 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business
(see page 33).
 
 
Balance sheet
 
 
31 March 2023
£m
 
31 December 2022
£m
ASSETS
 
 
 
Non-current assets
 
 
 
Property, plant and equipment
8,758 
 
8,933 
Right of use assets
656 
 
687 
Goodwill
6,857 
 
7,046 
Other intangible assets
14,160 
 
14,318 
Investments in associates and joint ventures
70 
 
74 
Other investments
1,270 
 
1,467 
Deferred tax assets
5,610 
 
5,658 
Other non-current assets
1,496 
 
1,194 
 
 
 
 
Total non-current assets
38,877 
 
39,377 
 
 
 
 
Current assets
 
 
 
Inventories
5,355 
 
5,146 
Current tax recoverable
296 
 
405 
Trade and other receivables
6,833 
 
7,053 
Derivative financial instruments
125 
 
190 
Current equity investments
4,020 
 
4,087 
Liquid investments
65 
 
67 
Cash and cash equivalents
2,890 
 
3,723 
Assets held for sale
135 
 
98 
 
 
 
 
Total current assets
19,719 
 
20,769 
 
 
 
 
TOTAL ASSETS
58,596 
 
60,146 
 
 
 
 
LIABILITIES
 
 
 
Current liabilities
 
 
 
Short-term borrowings
(4,261)
 
(3,952)
Contingent consideration liabilities
(962)
 
(1,289)
Trade and other payables
(14,268)
 
(16,263)
Derivative financial instruments
(98)
 
(183)
Current tax payable
(424)
 
(471)
Short-term provisions
(683)
 
(652)
 
 
 
 
Total current liabilities
(20,696)
 
(22,810)
 
 
 
 
Non-current liabilities
 
 
 
Long-term borrowings
(16,644)
 
(17,035)
Corporation tax payable
(123)
 
(127)
Deferred tax liabilities
(290)
 
(289)
Pensions and other post-employment benefits
(2,480)
 
(2,579)
Other provisions
(537)
 
(532)
Contingent consideration liabilities
(5,622)
 
(5,779)
Other non-current liabilities
(892)
 
(899)
 
 
 
 
Total non-current liabilities
(26,588)
 
(27,240)
 
 
 
 
TOTAL LIABILITIES
(47,284)
 
(50,050)
 
 
 
 
NET ASSETS
11,312 
 
10,096 
 
 
 
 
EQUITY
 
 
 
Share capital
1,348 
 
1,347 
Share premium account
3,449 
 
3,440 
Retained earnings
5,655 
 
4,363 
Other reserves
1,368 
 
1,448 
 
 
 
 
Shareholders’ equity
11,820 
 
10,598 
 
 
 
 
Non-controlling interests
(508)
 
(502)
 
 
 
 
TOTAL EQUITY
11,312 
 
10,096 
 
 
 
 
 
 
Statement of changes in equity
 
 
Share
capital
£m
 
Share
premium
£m
 
Retained
earnings
£m
 
Other
reserves
£m
 
Share-
holder’s
equity
£m
 
Non-
controlling
interests
£m
 
Total
equity
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At 1 January 2023
1,347
 
3,440
 
4,363