REG - AstraZeneca PLC - Final Results <Origin Href="QuoteRef">AZN.L</Origin> - Part 2

AstraZenecaAnnouncement

05/02/2015 07:11

- Part 2: For the preceding part double click  ID:nRSE1189Ea 

due to generic competition.                                                                                                                   
 
 
Regional Revenue 
 
                        Fourth Quarter                                                                                                                                                                                 Full Year                          
                        2014                                                                                                                                                                                    2013   % Change   2014  2013    % Change                
                        $m                                                                                                                                                                                      $m     Actual     CER   $m      $m        Actual  CER     
 US                     2,641                                                                                                                                                                                   2,634  -          -     10,120  9,691     4       4         
 Europe                 1,713                                                                                                                                                                                   1,822  (6)        -     6,638   6,658     -       (1)       
 Established ROW1       851                                                                                                                                                                                     1,023  (17)       (8)   3,510   3,973     (12)    (4)       
 Japan                  543                                                                                                                                                                                     668    (19)       (9)   2,227   2,485     (10)    (3)       
 Canada                 157                                                                                                                                                                                     161    (2)        4     590     637       (7)     (1)       
 Other Established ROW  151                                                                                                                                                                                     194    (22)       (16)  693     851       (19)    (13)      
 Emerging Markets2      1,478                                                                                                                                                                                   1,365  8          14    5,827   5,389     8       12        
 China                  566                                                                                                                                                                                     477    18         19    2,242   1,840     22      22        
 Total                  6,683                                                                                                                                                                                   6,844  (2)        2     26,095  25,711    1       3         
                                                                                                                                                                                                                                                
                        1Established ROW comprises Canada, Japan, Australia and New Zealand.2Emerging Markets comprises all remaining ROW markets, including Brazil, China, India, Mexico, Russia, and Turkey.  
                        
                                                                                                                                                                                                                                                                                      
 
 
 ·  Revenue in the US was stable in the fourth quarter at $2,641m. Growth platforms were strong, aided in part by the impact of completing the acquisition of BMS's share of the global diabetes alliance. Diabetes products provided $157m of incremental revenue, with growth from Symbicort and Brilinta also helping to offset declines in revenue from brands such as Nexium, Seroquel IR, and Synagis, in addition to the $113m reduction in fourth quarter revenue taken against product brands related to the change in     
    accounting for the Branded Pharmaceutical Fee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 ·  In the fourth quarter, revenue in Europe was also stable as the favourable impact from the acquisition of BMS's share of the global diabetes alliance and continued growth for Brilinta were offset by impact of Symbicort analogues in Europe, continuing impact from loss of exclusivity on brands including Seroquel and Atacand, and lower net pricing on Synagis.                                                                                                                                                          
 ·  Revenue in Established ROW was down 8% in the quarter due to generic pressure, only partially moderated by performance of growth platforms. Revenue in Japan declined by 9% in the fourth quarter, impacted by a recall of Nexium in December due to a packaging defect, de-stocking, and the mandated April 2014 biennial price cut.                                                                                                                                                                                           
 ·  Revenue in Emerging Markets was up 14% in the quarter. Strong growth was seen across the Emerging Markets business with China growing 19%, despite higher destocking in the quarter. Excluding China, the Emerging Markets grew by 12% in the fourth quarter. Primary drivers of growth were Respiratory and Cardiovascular products.                                                                                                                                                                                           
 
 
Condensed Consolidated Statement of Comprehensive Income 
 
 For the year ended 31 December                                                 2014$m      2013$m    
 Revenue                                                                        26,095      25,711    
 Cost of sales                                                                  (5,842)     (5,261)   
 Gross profit                                                                   20,253      20,450    
 Distribution costs                                                             (324)       (306)     
 Research and development expense                                               (5,579)     (4,821)   
 Selling, general and administrative costs                                      (13,000)    (12,206)  
 Other operating income and expense                                             787         595       
 Operating profit                                                               2,137       3,712     
 Finance income                                                                 78          50        
 Finance expense                                                                (963)       (495)     
 Share of after tax losses of joint ventures                                    (6)         -         
 Profit before tax                                                              1,246       3,267     
 Taxation                                                                       (11)        (696)     
 Profit for the period                                                          1,235       2,571     
                                                                                                      
 Other comprehensive income                                                                           
 Items that will not be reclassified to profit or loss                                                
 Remeasurement of the defined benefit pension liability                         (766)       8         
 Tax on items that will not be reclassified to profit or loss                   216         (82)      
                                                                                (550)       (74)      
 Items that may be reclassified subsequently to profit or loss                                        
 Foreign exchange arising on consolidation                                      (823)       (166)     
 Foreign exchange arising on designating borrowings in net investment hedges    (529)       (58)      
 Fair value movements on derivatives designated in net investment hedges        100         111       
 Amortisation of loss on cash flow hedge                                        1           1         
 Net available for sale gains taken to equity                                   245         69        
 Tax on items that may be reclassified subsequently to profit or loss           50          4         
                                                                                (956)       (39)      
 Other comprehensive income for the period, net of tax                          (1,506)     (113)     
 Total comprehensive income for the period                                      (271)       2,458     
                                                                                                      
 Profit attributable to:                                                                              
 Owners of the Parent                                                           1,233       2,556     
 Non-controlling interests                                                      2           15        
                                                                                1,235       2,571     
                                                                                                      
 Total comprehensive income attributable to:                                                          
 Owners of the Parent                                                           (266)       2,470     
 Non-controlling interests                                                      (5)         (12)      
                                                                                (271)       2,458     
                                                                                                      
 Basic earnings per $0.25 Ordinary Share                                        $0.98       $2.04     
 Diluted earnings per $0.25 Ordinary Share                                      $0.98       $2.04     
 Weighted average number of Ordinary Shares in issue (millions)                 1,262       1,252     
 Diluted weighted average number of Ordinary Shares in issue (millions)         1,264       1,254     
 
 
Basic earnings per $0.25 Ordinary Share 
 
$0.98 
 
$2.04 
 
Diluted earnings per $0.25 Ordinary Share 
 
$0.98 
 
$2.04 
 
Weighted average number of Ordinary Shares in issue (millions) 
 
1,262 
 
1,252 
 
Diluted weighted average number of Ordinary Shares in issue (millions) 
 
1,264 
 
1,254 
 
Condensed Consolidated Statement of Comprehensive Income 
 
 For the quarter ended 31 December                                              2014 $m    2013$m   
 Revenue                                                                        6,683      6,844    
 Cost of sales                                                                  (1,667)    (1,440)  
 Gross profit                                                                   5,016      5,404    
 Distribution costs                                                             (88)       (72)     
 Research and development expense                                               (1,499)    (1,429)  
 Selling, general and administrative costs                                      (4,084)    (4,642)  
 Other operating income and expense                                             306        148      
 Operating loss                                                                 (349)      (591)    
 Finance income                                                                 33         13       
 Finance expense                                                                (260)      (137)    
 Share of after tax losses of joint ventures                                    (4)        -        
 Loss before tax                                                                (580)      (715)    
 Taxation                                                                       259        195      
 Loss for the period                                                            (321)      (520)    
                                                                                                    
 Other comprehensive income                                                                         
 Items that will not be reclassified to profit or loss                                              
 Remeasurement of the defined benefit pension liability                         (268)      247      
 Tax on items that will not be reclassified to profit or loss                   89         (44)     
                                                                                (179)      203      
 Items that may be reclassified subsequently to profit or loss                                      
 Foreign exchange arising on consolidation                                      (411)      (26)     
 Foreign exchange arising on designating borrowings in net investment hedges    (237)      (35)     
 Fair value movements on derivatives designated in net investment hedges        64         51       
 Net available for sale gains taken to equity                                   172        10       
 Tax on items that may be reclassified subsequently to profit or loss           20         3        
                                                                                (392)      3        
 Other comprehensive income for the period, net of tax                          (571)      206      
 Total comprehensive income for the period                                      (892)      (314)    
                                                                                                    
 Loss attributable to:                                                                              
 Owners of the Parent                                                           (321)      (524)    
 Non-controlling interests                                                      -          4        
                                                                                (321)      (520)    
                                                                                                    
 Total comprehensive income attributable to:                                                        
 Owners of the Parent                                                           (892)      (315)    
 Non-controlling interests                                                      -          1        
                                                                                (892)      (314)    
                                                                                                    
 Basic (loss)/earnings per $0.25 Ordinary Share                                 ($0.25)    ($0.42)  
 Diluted (loss)/earnings per $0.25 Ordinary Share                               ($0.25)    ($0.42)  
 Weighted average number of Ordinary Shares in issue (millions)                 1,263      1,254    
 Diluted weighted average number of Ordinary Shares in issue (millions)         1,265      1,256    
 
 
($0.25) 
 
($0.42) 
 
Diluted (loss)/earnings per $0.25 Ordinary Share 
 
($0.25) 
 
($0.42) 
 
Weighted average number of Ordinary Shares in issue (millions) 
 
1,263 
 
1,254 
 
Diluted weighted average number of Ordinary Shares in issue (millions) 
 
1,265 
 
1,256 
 
Condensed Consolidated Statement of Financial Position 
 
                                                                           At 31 Dec 2014$m    At 31 Dec 2013$m  
 ASSETS Non-current assets                                                                                       
 Property, plant and equipment                                             6,010               5,818             
 Goodwill                                                                  11,550              9,981             
 Intangible assets                                                         20,981              16,047            
 Derivative financial instruments                                          465                 365               
 Investments in joint ventures                                             59                  -                 
 Other investments                                                         502                 281               
 Other receivables                                                         1,112               1,867             
 Deferred tax assets                                                       1,219               1,205             
                                                                           41,898              35,564            
 Current assets                                                                                                  
 Inventories                                                               1,960               1,909             
 Trade and other receivables                                               7,232               7,879             
 Other investments                                                         795                 796               
 Derivative financial instruments                                          21                  40                
 Income tax receivable                                                     329                 494               
 Cash and cash equivalents