Final Results
AstraZeneca
8 February 2024
FY and Q4 2023 results
Strong growth and pipeline momentum with three new medicines approved since the third quarter
Revenue and EPS summary
| FY 2023 | Q4 2023 | ||||||
| % Change | % Change | ||||||
| $m | Actual | CER[1] | $m | Actual | CER | ||
| - Product Sales | 43,789 | 2 | 4 | 11,323 | 5 | 5 | |
| - Alliance Revenue[2] | 1,428 | 89 | 89 | 424 | 69 | 67 | |
| - Collaboration Revenue2 | 594 | (1) | (1) | 277 | 75 | 74 | |
| Total Revenue | 45,811 | 3 | 6 | 12,024 | 7 | 8 | |
| Total Revenue ex COVID-19 | 45,488 | 13 | 15 | 12,036 | 16 | 16 | |
| Reported EPS | $3.84 | 81 | 96 | $0.62 | 7 | 5 | |
| Core[3] EPS | $7.26 | 9 | 15 | $1.45 | 5 | 7 | |
Financial performance for full year 2023 (Growthnumbers at CER)
‒ Total Revenue $45,811m, up 6% despite a decline of $3,736m from COVID-19 medicines[4]
‒ Excluding COVID-19 medicines, Total Revenue increased 15% and Product Sales increased 14%
‒ Double-digit Total Revenue growth from Oncology 21%, CVRM 18%, R&I 10%, and Rare Disease 12%
‒ Core Product Sales Gross Margin[5] of 82%, up two percentage points, reflecting the decline in sales of lower margin COVID‑19 medicines
‒ Core Operating Margin of 32% increased by two percentage points including the previously announced gain from an update to the contractual relationships for Beyfortus, totalling $712m and recorded as Core Other operating income. In the quarter, higher SG&A expense drove lower operating margins, partly due to phasing of expenses and increased investment in launches for Airsupra, Wainua and Truqap
‒ The Core Tax Rate for the year was 17%. In the fourth quarter, the tax rate was negatively impacted by reviews by tax authorities, administrative appeal processes and other adjustments, offset by a routine intragroup reorganisation of IP, leading to a tax rate of 10% in the quarter
‒ Core EPS increased 15% to $7.26
‒ Second interim dividend declared of $1.97 per share, making a total dividend declared for FY 2023 of $2.90 per share
‒ Total Revenue and Core EPS in FY 2024 are each expected to increase by a low double-digit to low teens percentage at CER
Pascal Soriot, Chief Executive Officer, AstraZeneca, said:
"As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress, with double-digit earnings growth, and investment in exciting areas of science, including antibody drug conjugates and cell therapies, that lay the foundations for long-term success.
We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies. Our differentiated and growing portfolio of approved medicines, global reach and rich R&D pipeline give us confidence that we will continue to deliver industry-leading growth."
Key milestones achieved since the prior results announcement
‒ Three first approvals for new molecular entities: Truqap (capivasertib), Wainua (eplontersen), Voydeya (danicopan)
‒ US approvals for Truqap plus Faslodex in HR-positive, HER2-negative advanced breast cancer with biomarker alterations (CAPItello‑291), and Wainua for ATTRv-PN (NEURO-TTRansform). China approvals for Imfinzi in mBTC (TOPAZ-1) and Beyfortus for prevention of RSV in infants (MEDLEY/MELODY). First approval, in Japan, for Voydeya, as an add-on therapy to Ultomiris or Soliris for PNH with EVH (ALPHA)
‒ Enhertu granted Priority Review in the US for patients with metastatic HER2-positive solid tumours
Guidance
The Company issues its Total Revenue and Core EPS guidance for FY 2024 at CER, based on the average foreign exchange rates through 2023.
Total Revenue is expected to increase by a low double-digit to low teens percentage
Core EPS is expected to increase by a low double-digit to low teens percentage
‒ Collaboration Revenue is expected to increase substantially, driven by success-based milestones and certain anticipated transactions
‒ Other operating income is expected to decrease substantially (FY 2023 included a $241m gain on the disposal of Pulmicort Flexhaler US rights, and a $712m one-time gain relating to updates to contractual arrangements for Beyfortus)
‒ The Core Tax rate is expected to be between 18-22%
The Company is unable to provide guidance on a Reported basis because it cannot reliably forecast material elements of the Reported results, including any fair value adjustments arising on acquisition-related liabilities, intangible asset impairment charges and legal settlement provisions. Please refer to the cautionary statements section regarding forward-looking statements at the end of this announcement.
Currency impact
If foreign exchange rates for February 2024 to December 2024 were to remain at the average rates seen in January 2024, it is anticipated that both FY 2024 Total Revenue and Core EPS would incur a low single-digit adverse impact versus the performance at CER. The Company's foreign exchange rate sensitivity analysis is provided in Table 19.
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