REG - AstraZeneca PLC - Half Yearly Report <Origin Href="QuoteRef">AZN.L</Origin> - Part 2
30/07/2015 07:13
- Part 2: For the preceding part double click ID:nRSd5111Ua
movements also impacted the performance. Market share was maintained
in the second quarter however, with a 1% point growth in new-to-brand share since the start of the year. In Europe, Product
Sales declined by 7% to $469m, reflecting prevailing competitive trends.
Crestor consolidated its position as the leading statin in Japan, growing its sales by 6% in the half. Emerging Markets
delivered sales growth of 5% at $352m, including 21% in China.
Oncology
Iressa
H1 Product Sales declined by 3% to $273m, primarily a function of the competitive environment in Europe where sales were
down by 5%, and in Japan down by 14%. The latter territory saw a material swing in performance from quarter to quarter,
with year-on-year growth of 9% in Q2.
Emerging Markets grew by 3% with Product Sales of $139m, with particular growth in China, up 5% and Russia, up 23%.
Lynparza
Product Sales reached $30m following the launch in the US at the end of 2014. Growth has been driven by the pool of
eligible patients awaiting treatment as well as patients newly-tested for BRCA mutation. Over 1,000 patients have already
been treated with Lynparza in the US for germline BRCA-advanced ovarian cancer with three or more lines of chemotherapy.
Zoladex
Product Sales in the half were up 9% to $409m. Notable performances included growth of 36% in China where Product Sales
reached $60m.
Faslodex
Product Sales for the half were up 5% to $333m. A 1% rise in European sales to $101m was complemented by 2% growth in the
US where Product Sales reached $165m.
The notable performance was in Emerging Markets, where sales of $42m represented a growth rate of 32%, an encouraging
result alongside the approval of 500mg Faslodex in China in May 2015.
ING
Nexium
Overall H1 Product Sales fell 27% to $1,291m, with Q2 sales similarly down 27% at $647m. The decline was particularly felt
in the US, where sales in the half fell 49% to $479m, reflecting the loss of exclusivity in February 2015 which directly
impacted both pricing and volumes. In Q2 this resulted in an increase to the estimate for pipeline inventory returns,
although the value of the level of business and volume maintained remains at a high level. Sales in Europe fell 10% in the
half to $143m.
Product Sales in markets outside the US delivered a positive result, with H1 Latin American sales up 17%, Japan sales up
16% and China sales up 3%. Emerging Markets represent a key opportunity for Nexium, with the brand's sales totalling $397m
in the half.
Seroquel XR
Product Sales declined by 7% in the half to $526m, with similar falls in each quarter. In the US H1 sales were up 2% to
$353m where the performance was mainly driven by a higher underlying net price.
The majority of the remainder of the brand's sales are in Europe, where a H1 sales decline of 25% to $113m was driven
primarily by competition from generic products.
Synagis
Product Sales fell 28% in the half to $270m, reflecting the 38% decline in the US where the majority of sales are made. A
significant factor was lower demand related to the American Academy of Pediatrics Committee on Infectious Disease
guidelines issued in mid-2014. These further restricted patients eligible for preventative therapy with Synagis. While
these guidelines were inconsistent with the approved label, demand was significantly impacted; this is anticipated to
continue in the second half. Product Sales in Europe fell 6% to $110m.
Regional Product Sales
________________________________________________________________________________
H1 2015 Q2 2015
% Change % Change
$m CER Actual $m CER Actual
US 4,525 (9) (9) 2,356 (3) (3)
Europe 2,601 (5) (20) 1,261 (5) (23)
Established ROW1 1,491 (2) (15) 785 - (14)
Japan 977 2 (12) 522 6 (10)
Canada 273 6 (5) 138 5 (6)
Other Established ROW 241 (23) (33) 125 (22) (34)
Emerging Markets2 2,967 14 2 1,434 9 (2)
China 1,309 19 18 583 10 11
Ex.China 1,658 10 (7) 851 8 (10)
Total 11,584 (2) (10) 5,836 (1) (10)
1 Established ROW comprises Japan, Canada, Australia and New Zealand.2 Emerging Markets comprises all remaining Rest of World markets, including Brazil, China, India, Mexico, Russia, and Turkey.
US
Product Sales in the half were down 9% to $4,525m, with an encouraging trend in sales illustrated by only a 3% fall in the
second quarter. Excluding the impact of the change in accounting related to the Branded Pharmaceutical Fee, Product Sales
in the quarter were down 1% versus the comparative period.
The headline decline in sales however reflected the loss of Nexium patent exclusivity, competition facing Crestor from
therapeutic substitution by generic statins, the adverse impact of the Synagis guideline changes and the aforementioned
change in accounting related to the Branded Pharmaceutical Fee. Onglyza sales also declined in the second quarter due to
ongoing competition in the diabetes market.
These declines were partly offset by growth in Brilinta, Bydureon, Farxiga, Lynparza and the inclusion of Tudorza and
Daliresp. Brilinta growth was driven by strong consecutive quarters of growth in total and new-to-brand prescription market
share gains. Bydureon continues to benefit from the launch of the Bydureon Pen as well as growth in demand in the overall
GLP-1 class. A strong acceleration in Farxiga sales reflected continued growth in demand underpinned by additional
promotional activity. With Lynparza exceeding the 1,000 patient milestone, it was encouraging to see the early benefit to
patients from a pipeline due to launch a number of important medicines in the US in the near term.
Europe
Product Sales in the half were down 5% to $2,601m. Strong growth from Forxiga and Onglyza was more than offset by continued
generic competition facing Crestor and Seroquel XR. An 8% decline in Symbicort sales reflected adverse pricing movements
driven by competition from analogues in key markets.
Established ROW
Product Sales were down 2% in the first half to $1,491m. Following a decline in the first quarter, Japan Q2 sales increased
by 6%, reflecting the passing of the anniversary of the mandated April 2014 biennial price cut.
Nexium and Crestor continue to grow strongly in Japan, growing by 16% and 6% in the half, respectively. Crestor's growth
reflected a continued increase in the usage of the 5mg dosage.
Canada Product Sales grew by 6% to $273m in the half, driven by the performances of Onglyza and Symbicort.
Emerging Markets
The Company continues to focus on delivering innovative medicines by accelerating investment in its Emerging Markets'
capabilities, with a focus on China and other leading markets, such as Russia and Brazil.
Product Sales were up 14% to $2,967m in the half with growth across the region. China sales in the half increased by 19% to
$1,309m, more in line with recent trends, with the Company's medicines for respiratory, cardiovascular and diabetes
diseases delivering particularly strong results. Russia sales were up 30% to $116m, while Brazil sales were up 15% to
$206m.
Q2 Product Sales were up 9% to $1,434m. China sales were up 10% to $583m, with slower growth after a 28% growth in Product
Sales in the first quarter.
Financial Performance
________________________________________________________________________________
H1 2015 Reported Restructuring IntangibleAmortisation & Impairments Diabetes Alliance Other1 Core % Change
H1 2015 H1 20142 CER Actual
Product Sales 11,584 - - - - 11,584 12,870 (2) (10)
Externalisation Revenue 780 - - - - 780 352 124 122
Total Revenue 12,364 - - - - 12,364 13,222 1 (6)
Cost of Sales (2,336) 101 317 - - (1,918) (2,349) (7) (18)
Gross Profit 10,028 101 317 - - 10,446 10,873 3 (4)
Gross Margin3 79.8% 83.4% 81.7% +1.0 +1.7
Distribution (161) - - - - (161) (149) 23 8
% Total Revenue 1.3% 1.3% 1.1% -0.2 -0.2
R&D (2,822) 124 62 - - (2,636) (2,306) 24 14
% Total Revenue 22.8% 21.3% 17.4% -3.8 -3.9
SG&A (5,765) 223 444 216 298 (4,584) (4,777) 4 (4)
% Total Revenue 46.6% 37.1% 36.1% -0.9 -1.0
Other Operating Income 576 - 135 - (158) 553 342 77 62
% Total Revenue 4.7% 4.5% 2.6% +1.9 +1.9
Operating Profit 1,856 448 958 216 140 3,618 3,983 (4) (9)
% Total Revenue 15.0% 29.3% 30.1% -1.5 -0.8
Net FinanceExpense (513) - - 204 59 (250) (267)
Joint Ventures (7) - - - - (7) -
Profit Before Tax 1,336 448 958 420 199 3,361 3,716 (3) (10)
Taxation (88) (94) (193) (95) (2) (472) (600)
Tax Rate 6.6% 14.0% 16.1%
Profit After Tax 1,248 354 765 325 197 2,889 3,116 - (7)
Non-controlling Interests (1) - - - - (1) (3)
Net Profit 1,247 354 765 325 197 2,888 3,113 - (7)
Weighted Average Shares 1,263 1,263 1,263 1,263 1,263 1,263 1,261
Earnings Per Share 0.99 0.28 0.60 0.26 0.16 2.29 2.47 - (7)
1 Other adjustments include provision charges and settlement income related to certain legal matters (see Note 5) and fair value adjustments to contingent consideration liabilities arising on business combinations (see Note 4).
2 2014 comparatives have been restated to reflect the reclassification of Externalisation Revenue from Other Operating Income.
3 Gross Margin reflects Gross Profit derived from Product Sales, divided by Product Sales.
Q2 2015 Reported Restructuring IntangibleAmortisation & Impairments Diabetes Alliance Other1 Core % Change
Q2 2015 Q2 20142 CER Actual
Product Sales 5,836 - - - - 5,836 6,454 (1) (10)
Externalisation Revenue 471 - - - - 471 308 54 53
Total Revenue 6,307 - - - - 6,307 6,762 2 (7)
Cost of Sales (1,067) 58 44 - - (965) (1,156) (7) (16)
Gross Profit 5,240 58 44 - - 5,342 5,606 4 (5)
Gross Margin3 81.7% 83.5% 82.1% +1.1 +1.4
Distribution (84) - - - - (84) (77) 27 10
% Total Revenue 1.3% 1.3% 1.1% -0.3 -0.2
R&D (1,466) 62 48 - - (1,356) (1,208) 23 12
% Total Revenue 23.2% 21.5% 17.9% -3.7 -3.6
SG&A (2,966) 115 242 108 285 (2,216) (2,460) (1) (10)
% Total Revenue 47.0% 35.1% 36.4% +1.2 +1.3
Other Operating Income 199 - 86 - (158) 127 170 (12) (25)
% Total Revenue 3.2% 2.0% 2.5% -0.3 -0.5
Operating Profit 923 235 420 108 127 1,813 2,031 (4) (11)
% Total Revenue 14.6% 28.7% 30.0% -1.7 -1.3
Net FinanceExpense (263) - - 100 31 (132) (141)
Joint Ventures (2) - - - - (2) -
Profit Before Tax 658 235 420 208 158 1,679 1,890 (2) (11)
Taxation 38 (49) (104) (47) 2 (160) (247)
Tax Rate -5.8% 9.5% 13.1%
Profit After Tax 696 186 316 161 160 1,519 1,643 3 (8)
Non-controlling Interests 1 - - - - 1 (1)
Net Profit 697 186 316 161 160 1,520 1,642 3 (8)
Weighted Average Shares 1,264 1,264 1,264 1,264 1,264 1,264 1,262
Earnings Per Share 0.55 0.15 0.25 0.13 0.13 1.21 1.30 3 (8)
1 Other adjustments include provision charges and settlement income related to certain legal matters (see Note 5) and fair value adjustments to contingent consideration liabilities arising on business combinations (see Note 4).
2 2014 comparatives have been restated to reflect the reclassification of Externalisation Revenue from Other Operating Income.
3 Gross Margin reflects Gross Profit derived from Product Sales, divided by Product Sales.
Gross Profit
Core gross profit increased by 3% in the half to $10,446m. Excluding the impact of externalisation, the Core gross profit
margin increased by 1% point. Drivers of the margin increase included the mix of Product Sales, the contribution from the
growth platforms and additional manufacturing efficiencies.
Operating Expenses
Core R&D costs were up 24% in the half to $2,636m as the Company continued its accelerated investment in the pipeline. The
Company anticipates a lower growth rate in the second half of the year.
Core SG&A costs were up 4% to $4,584m in the half as the Company continued to invest in the product launch programme and
the growth platforms; costs declined by 1% in the second quarter, reflecting the third successive quarter of falling Core
SG&A costs as a proportion of Total Revenue. In the second quarter, Core SG&A costs represented 35% of Total Revenue,
compared to 39% in Q1 2015 and 44% in Q4 2014.
The Company is committed to reducing Core SG&A costs in 2015 versus the prior year, both in terms of absolute value and,
importantly, relative to Total Revenue. A number of programmes designed to meet this target are in progress. These
initiatives are centred on:
- Sales, marketing and medical-cost effectiveness
- Centralisation of selected functions and process improvements
- Reduced third-party spend
- Additional efficiencies gained across support functions and IT
- Continued footprint optimisation, including presence in the UK and US
Resources are being deployed more opportunistically to meet changing customer needs and the evolving portfolio, while
driving top-line growth more efficiently.
Other Operating Income
Core Other Operating Income of $553m in the half included gains on the disposal of Myalept ($193m) and other disposals
amounting to $120m, including the US rights to Tenormin.
Operating Profit
Core Operating Profit was down 4% to $3,618m in the half. Core Operating Margin declined by 1.5% points to 29.3% of Total
Revenue as the Company continued to invest in the pipeline and the growth platforms.
Finance Expense
Core net finance expense was $250m versus $267m in the first half of 2014. Reported net finance expense of $513m included a
charge of $263m relating to the discount unwind on contingent consideration creditors recognised on business combinations,
principally relating to the acquisition of BMS's share of the global diabetes alliance last year.
Taxation
Excluding the one-off tax benefit of $186m following settlement of past years' US federal tax liabilities, both the Core
and Reported tax rates for the half year were around 20%. Including the impact of this benefit, the Core and Reported tax
rates for the half year were 14% and 7% respectively. The cash tax paid for the half year was $782m, which is 59% of
Reported Profit Before Tax and 23% of Core Profit Before Tax.
The Core and Reported tax rates for the first half of 2014 were 19% and 21% respectively when excluding the impact of a
one-off tax benefit of $117m in respect of prior periods following the inter-governmental agreement of a transfer pricing
matter. Including the impact of this benefit, the Core and Reported tax rates for the first half of 2014 were 16% and 13%
respectively. The cash tax paid for the first half of 2014 was $736m, which was 49% of Reported Profit Before Tax and 20%
of Core Profit Before Tax.
Earnings Per Share (EPS)
Core EPS in the half was stable at $2.29, a favourable performance versus Core Operating Profit due to a one-off tax
benefit in the second quarter. Reported Operating Profit of $1,856m was 1% higher than the first half of 2014. Reported EPS
was up by 2% at $0.99.
Productivity
Restructuring charges of $448m were taken in the first half of 2015, including $101m incurred on initiatives identified
since the announcement of the fourth wave of restructuring.
The Company continues to make good progress in implementing the fourth wave of restructuring that was announced in 2013 and
expanded in 2014. It remains on track to incur $3.2bn in one-time restructuring costs and to deliver annualised benefits of
$1.1bn by the end of 2016. In addition to the fourth wave of restructuring an additional $600m of costs are estimated to be
incurred by the end of 2016 (of which $362m has been incurred to date) associated with previously-announced site exits
(including Avlon in the UK) and the integration of businesses acquired since the beginning of 2014.
It is anticipated that, once completed, the total annualised benefits of these additional actions will be $200m, bringing
the total annualised benefit of all ongoing restructuring activities to $1.3bn by the end of 2016.
Cash Flow
The Company generated a cash inflow from operating activities of $1,008m in the half, compared with an inflow of $3,266m in
the first half of 2014, reflecting the operational performance of the business. Net cash outflows from investing activities
were $1,234m compared with $4,955m in the first half of 2014, primarily reflecting the acquisition of the BMS share of the
global diabetes alliance last year. The Company has embarked upon an initiative to further improve cash generation from the
business including standardisation of global processes and payment terms.
Net cash distributions to shareholders were $2,337m through dividends of $2,357m, offset by proceeds from the issue of
shares of $20m due to the exercise of stock options.
Debt and Capital Structure
At 30 June 2015, outstanding gross debt (interest-bearing loans and borrowings) was $11,008m (30 June 2014: $10,074m). Of
the gross debt outstanding at 30 June 2015, $2,705m was due within one year (30 June 2014: $2,500m).
The Company's net debt position at 30 June 2015 was $5,994m (30 June 2014: $3,959m).
Shares in Issue
During the half, 0.5 million shares were issued in respect of share option exercises for a consideration of $20m. The total
number of shares in issue at 30 June 2015 was 1,264 million.
Dividends
The Board has recommended an unchanged first interim dividend of $0.90 (57.5 pence, 7.71 SEK) per Ordinary Share.
For holders of the Company's American Depositary Shares (ADSs) this equates to $0.45 per ADS. Following the ratio change to
the Company's NYSE-listed sponsored Level 2 American Depositary Receipt programme on 27 July 2015, two ADSs equal one
Ordinary Share.
The level of the dividend per share reflects the Board's aim of setting the first interim dividend at around a third of the
prior-year dividend, which for FY 2014 was $2.80 per Ordinary Share.
The Board has adopted a progressive dividend policy, by which the Board intends to maintain or grow the dividend per share
each year. In adopting this policy, the Board recognises that some earnings fluctuations are to be expected as the
Company's revenue base transitions through a period of exclusivity losses and new-product launches.
In setting the distribution policy and the overall financial strategy, the Board's aim is to continue to strike a balance
between the interests of the business, financial creditors and the Company's shareholders. After providing for business
investment, funding the progressive dividend policy and meeting debt-service obligations, the Board will keep under review
the opportunity to return cash in excess of these requirements to shareholders through periodic share repurchases. However,
the Board has decided that no share repurchases will take place in 2015 in order to maintain the strategic flexibility to
invest in the business.
FY 2015 Guidance
The Company today revises its Total Revenue guidance at CER from that provided on 24 April 2015. Total Revenue in the full
year is now expected to decline by low single-digit percent versus the prior guidance of a mid single-digit decline. Core
EPS guidance at CER for the year is unchanged and Core EPS is expected to increase by low single-digit percent, reflecting
the continued accelerated investment in R&D.
The Company also provides the following non-guidance information related to currency sensitivity: Based on current exchange
rates1, Total Revenue is expected to decline by high single-digit percent with Core EPS expected to be broadly in line with
FY 2014. For additional currency sensitivity information, please see below:
Average Exchange Rates Versus USD Impact Of 5% Weakening In Exchange Rate Versus USD ($m)2
Currency Primary Relevance FY 2014 H1 20151 Change % Total Revenue Core Operating Profit
EUR Product Sales 0.75 0.89 (16) (225) (138)
JPY Product Sales 105.87 120.25 (12) (119) (84)
CNY Product Sales 6.16 6.22 (1) (115) (49)
SEK Costs 6.86 8.37 (18) (6) 114
GBP Costs 0.61 0.66 (7) (37) 112
Other3 (242) (139)
1 Based on average daily spot rates YTD to the end of June 2015
2 Based on 2014 actual average exchange rates and group currency exposures
3 Other important currencies include AUD, BRL, CAD, KRW and RUB
Related Party Transactions
There have been no significant related party transactions in the period.
Principal Risks and Uncertainties
It is not anticipated that the nature of the principal risks and uncertainties that affect the business, and which are set
out on pages 205 to 219 of the Annual Report and Form 20-F Information 2014, will change in respect of the second six
months of the financial year.
In summary, the principal risks and uncertainties listed in the Annual Report and 20-F Information 2014 are:
a) Product pipeline risks
Failure to meet development targets; difficulties of obtaining and maintaining regulatory approvals for new products;
failure to obtain and enforce effective intellectual property protection; delay to new product launches; strategic
alliances and acquisitions may be unsuccessful.
b) Commercialisation and business execution risks
Challenges to achieving commercial success of new products; illegal trade in our products; developing our business in
Emerging Markets; expiry or loss of, or limitations on, intellectual property rights; pressures resulting from generic
competition; effects of patent litigation in respect of intellectual property rights; price controls and price reductions;
economic, regulatory and political pressures; biosimilars; increasing implementation and enforcement of more stringent
anti-bribery and anti-corruption legislation; any expected gains from productivity initiatives are uncertain; changes in
senior management, failure to attract and retain key personnel and failure to successfully engage with our employees;
failure of information technology; failure of outsourcing.
c) Supply chain and delivery risks
Manufacturing biologics; difficulties and delays in the manufacturing, distribution and sale of our products; reliance on
third parties for goods.
d) Legal, regulatory and compliance risks
Adverse outcome of litigation and/or governmental investigations; substantial product liability claims; failure to adhere
to applicable laws, rules and regulations; failure to adhere to laws, rules and regulations relating to anti-competitive
behaviour; environmental and occupational health and safety liabilities; misuse of social media platforms and new
technology.
e) Economic and financial risks
Adverse impact of a sustained economic downturn; political and socio-economic conditions; impact of fluctuations in
exchange rates; limited third party insurance coverage; taxation; pensions.
Condensed Consolidated Statement of Comprehensive Income
Product sales 11,584 12,870
Externalisation revenue 780 352
Total revenue 12,364 13,222
Cost of sales (2,336) (2,760)
Gross profit 10,028 10,462
Distribution costs (161) (149)
Research and development expense (2,822) (2,528)
Selling, general and administrative costs (5,765) (5,784)
Other operating income and expense 576 (56)
Operating profit 1,856 1,945
Finance income 24 26
Finance expense (537) (467)
Share of after tax losses in joint ventures (7) -
Profit before tax 1,336 1,504
Taxation (88) (201)
Profit for the period 1,248 1,303
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the defined benefit pension liability 242 (288)
Tax on items that will not be reclassified to profit or loss (57) 85
185 (203)
Items that may be reclassified subsequently to profit or loss
Foreign exchange arising on consolidation (11) 64
Foreign exchange arising on designating borrowings in net investment hedges (217) (122)
Fair value movements on derivatives designated in net investment hedges 20 (11)
Amortisation of loss on cash flow hedge 1 1
Net available for sale (losses)/gains taken to equity (29) 49
Tax on items that may be reclassified subsequently to profit or loss 43 5
(193) (14)
Other comprehensive income for the period, net of tax (8) (217)
Total comprehensive income for the period 1,240 1,086
Profit attributable to:
Owners of the Parent 1,247 1,300
Non-controlling interests 1 3
1,248 1,303
Total comprehensive income attributable to:
Owners of the Parent 1,239 1,089
Non-controlling interests 1 (3)
1,240 1,086
Basic earnings per $0.25 Ordinary Share $0.99 $1.03
Diluted earnings per $0.25 Ordinary Share $0.99 $1.03
Weighted average number of Ordinary Shares in issue (millions) 1,263 1,261
Diluted weighted average number of Ordinary Shares in issue (millions) 1,265 1,263
1,086
Basic earnings per $0.25 Ordinary Share
$0.99
$1.03
Diluted earnings per $0.25 Ordinary Share
$0.99
$1.03
Weighted average number of Ordinary Shares in issue (millions)
1,263
1,261
Diluted weighted average number of Ordinary Shares in issue (millions)
1,265
1,263
* 2014 comparatives restated for reclassification of Externalisation revenue (see Note 1)
Condensed Consolidated Statement of Comprehensive Income
Product sales 5,836 6,454
Externalisation revenue 471 308
Total revenue 6,307 6,762
Cost of sales (1,067) (1,307)
Gross profit 5,240 5,455
Distribution costs (84) (77)
Research and development expense (1,466) (1,328)
Selling, general and administrative costs (2,966) (3,058)
Other operating income and expense 199 117
Operating profit 923 1,109
Finance income 13 10
Finance expense (276) (253)
Share of after tax losses of joint ventures (2) -
Profit before tax 658 866
Taxation 38 (69)
Profit for the period 696 797
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the defined benefit pension liability 259 (263)
Tax on items that will not be reclassified to profit or loss (61) 79
198 (184)
Items that may be reclassified subsequently to profit or loss
Foreign exchange arising on consolidation 438 9
Foreign exchange arising on designating borrowings in net investment hedges 191 (121)
Fair value movements on derivatives designated in net investment hedges (1) (2)
Amortisation of loss on cash flow hedge 1 1
Net available for sale (losses)/gains taken to equity (48) 47
Tax on items that may be reclassified subsequently to profit or loss (57) 12
524 (54)
Other comprehensive income for the period, net of tax 722 (238)
Total comprehensive income for the period 1,418 559
Profit attributable to:
Owners of the Parent 697 796
Non-controlling interests (1) 1
696 797
Total comprehensive income attributable to:
Owners of the Parent 1,418 558
Non-controlling interests - 1
1,418 559
Basic earnings per $0.25 Ordinary Share $0.55 $0.63
Diluted earnings per $0.25 Ordinary Share $0.55 $0.63
Weighted average number of Ordinary Shares in issue (millions) 1,264 1,262
Diluted weighted average number of Ordinary Shares in issue (millions) 1,265 1,264
559
Basic earnings per $0.25 Ordinary Share
$0.55
$0.63
Diluted earnings per $0.25 Ordinary Share
$0.55
$0.63
Weighted average number of Ordinary Shares in issue (millions)
1,264
1,262
Diluted weighted average number of Ordinary Shares in issue (millions)
1,265
1,264
* 2014 comparatives restated for reclassification of Externalisation revenue (see Note 1)
Condensed Consolidated Statement of Financial Position
ASSETS Non-current assets
Property, plant and equipment 6,134 6,010 6,150
Goodwill 11,467 11,550 11,560
Intangible assets 20,486 20,981 21,150
Derivative financial instruments 471 465 349
Investments in joint ventures 52 59 70
Other investments 448 502 289
Other receivables 957 1,112 1,380
Deferred tax assets 1,342 1,219 1,387
41,357 41,898 42,335
Current assets
Inventories 2,198 1,960 2,249
Trade and other receivables 6,615 7,232 7,817
Other investments 531 795 819
Derivative financial instruments 51 21 1
Income tax receivable 450 329 360
Cash and cash equivalents 3,967 6,360 4,958
13,812 16,697 16,204
Total assets 55,169 58,595 58,539
LIABILITIES Current liabilities
Interest-bearing loans and borrowings (2,705) (2,446) (2,500)
Trade and other payables (10,659) (11,886) (10,304)
Derivative financial instruments (6) (21) (12)
Provisions (731) (623) (679)
Income tax payable (2,049) (2,354) (2,827)
(16,150) (17,330) (16,322)
Non-current liabilities
Interest-bearing loans and borrowings (8,303) (8,397) (7,574)
Deferred tax liabilities (1,582) (1,796) (2,427)
Retirement benefit obligations (2,377) (2,951) (2,634)
Provisions (479) (484) (580)
Other payables (7,979) (7,991) (6,950)
(20,720) (21,619) (20,165)
Total liabilities (36,870) (38,949) (36,487)
Net assets 18,299 19,646 22,052
EQUITY
Capital and reserves attributable to equity holders of the Company
Share capital 316 316 316
Share premium account 4,281 4,261 4,236
Other reserves 2,033 2,021 1,973
Retained earnings 11,649 13,029 15,504
18,279 19,627 22,029
Non-controlling interests 20 19 23
Total equity 18,299 19,646 22,052
19,627
22,029
Non-controlling interests
20
19
23
Total equity
18,299
19,646
22,052
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
Profit before tax 1,336 1,504
Finance income and expense 513 441
Share of after tax losses in joint ventures 7 -
Depreciation, amortisation and impairment 1,565 1,410
(Increase)/decrease in working capital and short-term provisions (767) 703
Non-cash and other movements (612) 216
Cash generated from operations 2,042 4,274
Interest paid (252) (272)
Tax paid (782) (736)
Net cash inflow from operating activities 1,008 3,266
Cash flows from investing activities
Movement in short-term investments and fixed deposits 273 34
Purchase of property, plant and equipment (497) (378)
Disposal of property, plant and equipment 16 133
Purchase of intangible assets (1,222) (1,490)
Disposal of intangible assets 350 -
Purchase of non-current asset investments (30) (5)
Disposal of non-current asset investments 56 -
Payments to joint ventures - (70)
Upfront payments on business acquisitions - (2,778)
Payment of contingent consideration on business acquisitions (239) (449)
Interest received 59 58
Payments made by subsidiaries to non-controlling interests - (10)
Net cash outflow from investing activities (1,234) (4,955)
Net cash outflow before financing activities (226) (1,689)
Cash flows from financing activities
Proceeds from issue of share capital 20 254
Repayment of loans (884) (750)
Dividends paid (2,357) (2,425)
Hedge contracts relating to dividend payments (43) 25
Repayment of obligations under finance leases (34) (17)
Payments to acquire non-controlling interest - (102)
Movement in short-term borrowings 910 445
Net cash outflow from financing activities (2,388) (2,570)
Net decrease in cash and cash equivalents in the period (2,614) (4,259)
Cash and cash equivalents at the beginning of the period 6,164 8,995
Exchange rate effects (29) 3
Cash and cash equivalents at the end of the period 3,521 4,739
Cash and cash equivalents consists of:
Cash and cash equivalents 3,967 4,958
Overdrafts (446) (219)
3,521 4,739
4,958
Overdrafts
(446)
(219)
3,521
4,739
Condensed Consolidated Statement of Changes in Equity
Share Share Other Retained Total Non- Total
capital premium reserves* earnings $m controlling equity
$m account $m $m interests $m
$m $m
At 1 Jan 2014 315 3,983 1,966 16,960 23,224 29 23,253
Profit for the period - - - 1,300 1,300 3 1,303
Other comprehensive income - - - (211) (211) (6) (217)
Transfer to other reserves - - 7 (7) - - -
Transactions with owners:
Dividends - - - (2,395) (2,395) - (2,395)
Issue of Ordinary Shares 1 253 - - 254 - 254
Share-based payments - - - (143) (143) - (143)
Transfer from non-controlling interests to payables - - - - - (3) (3)
Net movement
- More to follow, for following part double click ID:nRSd5111UcRecent news on AstraZeneca
See all newsRCS - LHH - LHH, EZRA's AI Leadership Transformation Program
AnnouncementREG - AstraZeneca PLC - Baxdrostat met primary endpoint in Bax24 Ph3 trial
AnnouncementREG - AstraZeneca PLC - Datroway improved OS and PFS in TROPION-Breast02
AnnouncementREG - AstraZeneca PLC - Total Voting Rights
AnnouncementREG - AstraZeneca PLC - Enhertu improved IDFS in early BC in DB-05
Announcement