FOURTH QUARTER AND FULL YEAR RESULTS 2011
London, 2 February 2012
Revenue for the full year was down 2 percent at constant exchange rates (CER) at $33,591 million.
-Strong double-digit sales growth at CER for Crestor, Seroquel XR and Symbicort; Emerging Markets revenue increased by 10 percent at CER in the fourth quarter and for the full year.
-Revenue performance reflects the loss of nearly $2 billion of revenue from generic competition, as well as a further $1 billion lost to the impact of government price interventions.
Core operating profit for the full year was down 4 percent at CER to $13,167 million.
-Core operating margin of 39.2 percent of revenue was down 1.2 percentage points at CER, as benefits arising from higher gross margin and lower SG&A spend at CER were more than offset by increased expenditures in R&D and lower Core other income.
Core EPS for the full year increased by 7 percent at CER to $7.28.
-Core EPS benefited from the lower number of shares outstanding resulting from net share repurchases and a lower tax rate compared with last year.
Reported EPS for the full year was up 29 percent at CER to $7.33.
-Gain on the sale of Astra Tech, which was excluded from Core EPS in the third quarter 2011, amounted to $1.08. The growth rate in Reported EPS also benefited from the fact that intangible impairments excluded from Core earnings were higher in 2010.
Revenue in the fourth quarter unchanged at CER; Core EPS was up 12 percent at CER.
Net cash distributions to shareholders increased by 71 percent to $9,370 million.
-Dividend increased by 10 percent to $2.80 for the full year. Net share repurchases total $5.6 billion in 2011.
-Board announces plans for $4.5 billion in net share repurchases for 2012.
Company reaffirms planning assumptions for total revenue, margins and cash deployment for the period 2010-14.
-Risk adjusted revenue from recently launched and pipeline products lowered to range of $2 to $4 billion.
Company announces new set of restructuring initiatives (see page 3).
Financial Summary
Group | 4th Quarter 2011 $m |
4th Quarter 2010 $m |
Actual % |
CER % |
Full Year 2011 $m |
Full Year 2010 $m |
Actual % |
CER % |
Revenue | 8,656 | 8,617 | - | - | 33,591 | 33,269 | +1 | -2 |
Reported | ||||||||
Operating Profit | 2,167 | 2,411 | -10 | -14 | 12,795 | 11,494 | +11 | +10 |
Profit before Tax | 2,052 | 2,283 | -10 | -14 | 12,367 | 10,977 | +13 | +11 |
Earnings per Share | $1.16 | $1.15 | - | -5 | $7.33 | $5.60 | +31 | +29 |
Core* | ||||||||
Operating Profit | 2,990 | 2,865 | +4 | +1 | 13,167 | 13,603 | -3 | -4 |
Profit before Tax | 2,875 | 2,737 | +5 | +1 | 12,739 | 13,086 | -3 | -4 |
Earnings per Share | $1.61 | $1.39 | +16 | +12 | $7.28 | $6.71 | +9 | +7 |
* 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 2012 is based. See page 13 for a definition of Core financial measures and pages 13 and 14 for a reconciliation of Core to Reported financial measures.
David Brennan, Chief Executive Officer, said: “Disciplined execution of our strategy has delivered a good performance in 2011 in the face of intensified pricing pressure and generic competition. Our strong cash flow supported a significant increase in cash distributions to shareholders and continued investment to drive future growth and value. While the further expected losses of market exclusivity make for a challenging 2012 outlook, we remain committed to a long-term, focused, R&D based strategy, and today we have announced further steps to drive productivity in all areas to improve returns on our investment in innovation.”
Media Enquiries: | Esra Erkal-Paler (London) | +44 20 7604 8030 |
Abigail Baron (London) | +44 20 7604 8034 | |
Tony Jewell (Wilmington) | +1 302 885 4594 | |
Ann-Leena Mikiver (Södertälje) | +46 8 553 260 20/+46 707 428836 | |
Analyst/Investor Enquiries: | James Ward-Lilley (London) | +44 20 7604 8122 |
Karl Hård (London) | +44 20 7604 8123 | |
Nicklas Westerholm (London) | +44 20 7604 8124 | |
Ed Seage/Jörgen Winroth (US) | +1 302 886 4065/+1 212 579 0506 |