Half-year Report
AstraZeneca
28 July 2023
H1 and Q2 2023 results
Strong revenue and EPS growth, reflecting momentum of recent launches and robust commercial execution
Revenue and EPS summary
| H1 2023 | Q2 2023 | ||||||
| % Change | % Change | ||||||
| $m | Actual | CER[1] | $m | Actual | CER | ||
| - Product Sales | 21,448 | (1) | 3 | 10,882 | 2 | 5 | |
| - Alliance Revenue[2] | 627 | >2x | >2x | 341 | >2x | >2x | |
| - Collaboration Revenue2 | 220 | (16) | (15) | 193 | n/m | n/m | |
| Total Revenue | 22,295 | 1 | 4 | 11,416 | 6 | 9 | |
| Total Revenue ex COVID-19 | 21,961 | 12 | 16 | 11,237 | 14 | 17 | |
| Reported[3] EPS[4] | $2.34 | >4x | >6x | $1.17 | >5x | >9x | |
| Core[5] EPS | $4.07 | 13 | 21 | $2.15 | 25 | 38 | |
Financial performance (H1 2023 figures unless otherwise stated, growthnumbers at CER)
‒ Total Revenue $22,295m, up 4% despite a decline of $2,181m from COVID-19 medicines[6]
‒ Excluding COVID-19 medicines, Total Revenue increased 16% and Product Sales increased 15%
‒ Total Revenue from Oncology medicines increased 22%, CVRM[7] 20%, R&I[8] 10%, and Rare Disease 12%
‒ Core Product Sales Gross Margin[9] of 83%, up three percentage points, reflecting the decline in sales of lower margin COVID‑19 medicines, the cost of production in prior periods, and ongoing mix shift to more speciality medicines
‒ In Q2 2023, Core Other operating income and expense included the previously-announced gain resulting from an update to the contractual relationships for Beyfortus (nirsevimab), totalling $712m
‒ Core EPS increased 21% to $4.07. Interim dividend maintained at $0.93 (71.8 pence, 9.64 SEK)
‒ Reiterating guidance for FY 2023 Total Revenue and Core EPS
Pascal Soriot, Chief Executive Officer, AstraZeneca, said:
"Each of our non-COVID-19 therapy areas saw double-digit revenue growth, with eight medicines delivering more than $1bn of revenue in the first half, demonstrating the strength of our business. Several medicines grew rapidly including Ultomiris, Imfinzi/Imjudo and Farxiga, with revenues up 64%, 57% and 40% respectively.
Our pipeline momentum continues with eight positive pivotal trials for our Oncology medicines so far this year, and we are encouraged by the positive data from TROPION-Lung01, the first pivotal trial of datopotamab deruxtecan. We look forward to sharing the data with the medical community at an upcoming medical congress and are proceeding to file the data with the US Food and Drug Administration.
And finally, as part of our flagship sustainability programme, Ambition Zero Carbon, we announced a $400m investment in AZ Forest, raising our commitment to plant 200 million trees by 2030."
Please refer the associated PDF document to view the full announcement.
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