AstraZeneca PLC Second Quarter and Half Year Results 2011
Revenue for the second quarter was $8,430 million, down 2 percent at constant exchange rates (CER).
-Strong double-digit growth at CER for Crestor, Symbicort and Seroquel XR.
-Emerging Markets revenue increased by 10 percent at CER.
-Revenue performance reflects the loss of more than $0.5 billion of revenue from generic competition, as well as the impact of government price interventions.
Core operating profit in the second quarter declined by 10 percent at CER to $3,322 million.
-Core R&D expense increased by 8 percent at CER, reflecting the impact of several late stage clinical programme starts which commenced late 2010 and early 2011.
-Core SG&A expense increased by 9 percent at CER, which includes the impact of the excise tax related to US healthcare reform and a one-time expense for termination of a marketing and distribution contract in the US, in addition to investments in Emerging Markets and product launches.
Core EPS in the second quarter was down 5 percent at CER to $1.73.
-Core EPS benefited from the lower number of shares outstanding resulting from share repurchases.
Reported EPS in the second quarter was up 3 percent at CER to $1.53.
-Reported EPS growth was largely the result of lower restructuring costs compared with the prior year.
On 20 July, the Company announced the US FDA approval for Brilinta.
The Board has recommended a first interim dividend of $0.85. Net share repurchases totalled $2.2 billion in the first half. When completed, the entire net proceeds from the sale of Astra Tech will augment share repurchases; depending on the timing, net share repurchases in 2011 could increase to $5 billion.
Core EPS target for the full year increased to the range of $7.05 to $7.35.
Financial Summary
| Group | 2nd Quarter 2011 $m |
2nd Quarter 2010 $m |
Actual% | CER% | Half Year 2011 $m | Half Year 2010 $m | Actual% | CER% | |
| Revenue | 8,430 | 8,178 | +3 | -2 | 16,722 | 16,754 | - | -3 | |
| Reported | |||||||||
| Operating Profit | 2,965 | 3,034 | -2 | -4 | 6,366 | 6,677 | -5 | -5 | |
| Profit before Tax | 2,858 | 2,917 | -2 | -4 | 6,146 | 6,436 | -5 | -5 | |
| Earnings per Share | $1.53 | $1.46 | +5 | +3 | $3.61 | $3.37 | +7 | +7 | |
| Core* | |||||||||
| Operating Profit | 3,322 | 3,650 | -9 | -10 | 7,000 | 7,507 | -7 | -7 | |
| Profit before Tax | 3,215 | 3,533 | -9 | -11 | 6,780 | 7,266 | -7 | -7 | |
| Earnings per Share | $1.73 | $1.79 | -3 | -5 | $3.96 | $3.82 | +4 | +3 | |
| * | Core financial measures are supplemental non-GAAP measures which management believe enhance understanding of the Company’s performance; it is upon these measures that financial guidance for 2011 is based. See page 11 for a definition of Core financial measures and pages 11 and 12 for a reconciliation of Core to Reported financial measures. |
David Brennan, Chief Executive Officer, said: “Despite the anticipated impact of generic competition and government pricing interventions in the quarter, we are able to raise our Core earnings per share guidance and increase our shareholder cash return targets for the full year. The approval of Brilinta in 41 countries around the world, most recently in the US, demonstrates our commitment to deliver our global, innovation-driven biopharmaceuticals strategy.”
| Media Enquiries: | Esra Erkal-Paler (London) | +44 20 7604 8032 |
| Abigail Baron (London) | +44 20 7604 8034 | |
| Tony Jewell (Wilmington) | +1 302 885 4594 | |
| Anne-Charlotte Knutsson (Södertälje) | +46 8 553 213 75/+46 70 685 4295 | |
| Analyst/Investor Enquiries: | Karl Hård (London) | +44 20 7604 8123 |
| Jonathan Hunt (London) | +44 20 7604 8122 | |
| Nicklas Westerholm (London) | +44 20 7604 8124 | |
| Ed Seage/Jörgen Winroth (US) | +1 302 886 4065/+1 212 579 0506 |