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Key financial performances
In 2019 revenue increased by 6% (+7% CER) to € 4 913 million. Net sales also increased and reached € 4 680 million, a plus of 6% (+7%CER). This growth was driven by the continued strong performance of the core products, accounting for more than 90% of the net sales before hedging.
Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.] measuring the underlying profitability improved by 2% (+11% CER) to € 1 431 million, driven by higher marketing and selling expenses due to the Cimzia® launch, Evenity® launch preparation in Europe and higher R&D expenses to support the pipeline progress.
Core earnings per share reached € 5.20 (+9%; +24% CER) based on an average of 187 million shares outstanding.
Upcoming report
| Date | Event details |
|---|---|
| 27 July 2020 | 2020 half-year results 07.00 Press release 14.00 Conference call /webcast |
Outlook 2020
The closing of the Ra Pharma acquisition led to an update of UCB’s 2020 financial guidance and the mid-term target
The updated financial guidance does not reflect any potential impacts from the evolving COVID-19 pandemic. The company is following these developments diligently to assess the financial significance of this pandemic to UCB
2020 revenue
€ 5.05 - € 5.15 billion
Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.]
26% - 27%
Core earnings per share
€ 4.40 - € 4.80
based on an average of 187 million shares outstanding
Mid-term guidance
The inclusion of Ra Pharma will be dilutive to UCB’s mid-term earnings level due to R&D investments. As a result, the mid-term target of UCB reaching a rEBITDA ratio (to revenue) of 31% moves to 2022 from 2021 as previously guided. The acquisition is expected to be core EPS accretive from 2024 onwards and to enable accelerated top and bottom line growth for UCB from 2024 onwards.
Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.] / revenue ratio
31% in 2022
Updated peak sales
- Vimpat® ≥ € 1.5 billion by 2022
- Cimzia® peak sales ≥ € 2 billion by 2024
Briviact® peak sales
≥ € 600 million in 2026
Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.] reached € 1 431 million (+2%; +11% CER), driven by the strong net sales growth which compensated the higher operating expenses, reflecting the investments into the future of UCB, namely into product launches and product development. In 2019, the recurring EBITDA/revenue ratio reached 29.1%
Cimzia® net sales amounted to € 1 712 million (+18%; +14% CER), driven by continued, sustainable growth in all region as well as new patient populations like women in childbearing age and people living with non-radiographic axial spondyloarthritis or psoriasis.
With net sales of € 1 322 million (+20%; +15% CER) Vimpat® showed continued strong growth in all regions thanks to reaching more and more people living with epilepsy. Treatment options available to patients cover mono-and adjunctive therapy as well as for pediatric use.
Briviact® available for people living with epilepsy since 2016, reached net sales of € 221 million (+56%,+49% CER). This is driven by significant growth in all regions. Briviact® has a different mode of action from Vimpat® and differentiates from Keppra®.
More financials...
In 2019 revenue increased by 6% (+7% at constant exchange rates (CER)) to € 4 913 million. Net sales also increased and reached € 4 680 million, a plus of 6% (+7%CER).
This growth was driven by the continued strong performance of the core products, accounting for more than 90% of the net sales before hedging.
Operating expenses, encompassing marketing and selling expenses, research and development expenses, general and administrative expenses and other operating income/expenses, reached € 2 527 million (+9%; +6% CER). The operating expenses ratio (as a % of revenue) is 51%.
- 15% higher marketing and selling expenses of € 1 108 million, focused on Cimzia®, here especially the launches in psoriasis in the U.S. and Europe and the launch in non-radiographic axial spondyloarthritis in the U.S, as well as Vimpat®, Briviact® and launch preparations for Evenity® in Europe.
- 10% higher R&D expenses of € 1 272 million resulting in a R&D ratio of 26% in 2019 after 25% in 2018; and reflecting higher investments in UCB’s late stage, progressing pipeline, including 11 confirmatory studies (last clinical studies before submission to authorities) ongoing in 2019.
- 8% higher general and administrative expenses of € 195 million, also driven by preparations and additional external resources for the new organization model implemented at UCB in 2019.
- other operating income of € 48 million, due to investment grants, the divestiture of the campus in Monheim (Germany) and the release of VAT provisions supported by an income of € 8 million from the collaboration with Amgen in connection of the development and commercialization of Evenity®.
Net financial cash of € 12 million as per end December 2019 compared to net financial debt of € −237 million as of end December 2018, and mainly relates to the underlying net profitability, offset by the acquisition of assets, the dividend payment on the 2018 results and the acquisition of own shares.
As from 2009 UCB successfully implemented a debt diversification and refinancing strategy. The company issued bonds that are outstanding bonds per 31 December 2019:
- € 250 million retail bonds, due 2020
- € 350 million institutional bonds, due 2021
- € 350 million institutional bonds, due 2022
- € 176 million retail bonds, due 2023
In addition to these bonds, UCB has the availability of a
€ 1 billion revolving credit facility, due 2024.
The evolution of cash flow generated by biopharmaceuticals activities is affected by the following:
- Cash flow from operating activities amounted to € 882 million, of which € 893 million from continuing operations, compared to € 1 098 million in 2018 and stemming from underlying net profitability, offset with a higher need of commercial and development inventory and higher trade receivables after a strong Q4 net sales performance.
- Cash flow from investing activities showed an outflow of € 235 million (continuing operations), compared to € 320 million in 2018. The outflow is related to investment in assets such as midazolam acquired from Proximagen, offset with the sale of non-core assets
- Cash flow from financing activities has an outflow of € 605 million, which which includes the dividend paid to UCB shareholders (€ 228 million), the acquisition of treasury shares (€ 77 million) and the repayment of borrowings (€ 118 million) and EMTN bonds (€ 75 million).