1.1 Key highlights

  • 2018 revenue increased by 2%, +5% at constant exchange rates (CER) to € 4 632 million. Net sales went up to € 4 412 million (+5%, +8% CER). This growth was driven by the continued performance of the core products in immunology, Cimzia®, the epilepsy franchise: Vimpat®, Keppra® and Briviact®, as well as the Parkinson drug Neupro®. Royalty income and fees reached € 92 million. Other revenue decreased to € 128 million.
  • Recurring EBITDA grew to € 1 398 million by 2% (+5% CER), thanks to core product growth and despite higher R&D expense.
  • Profit reached € 823 million from € 771 million, of which € 800 million is attributable to UCB shareholders after € 753 million in 2017.
  • Core EPS reached € 4.78 after € 4.82 in 2017.

 

 

 

 

 

 

Actual1

Variance

€ million

2018

2017

Actual rates

CER2

1

Due to rounding, some financial data may not add up in the tables included in this management report.

2

CER: constant exchange rates

Revenue

4 632

4 530

2%

5%

Net sales

4 412

4 182

5%

8%

Royalty income and fees

92

108

-15%

-11%

Other revenue

128

240

-47%

-46%

Gross Profit

3 434

3 330

3%

6%

Marketing and selling expenses

-964

-940

3%

6%

Research and development expenses

-1 161

-1 057

10%

11%

General and administrative expenses

-180

-192

-6%

-5%

Other operating income/expenses (-)

-24

-11

>100%

>100%

Recurring EBIT (rEBIT)

1 105

1 130

-2%

1%

Non-recurring income/expenses (-)

4

-43

>-100%

>-100%

EBIT (operating profit)

1 109

1 087

2%

5%

Net financial expenses

-93

-99

-6%

-5%

Profit before income taxes

1 015

988

3%

6%

Income tax expenses

-200

-218

-8%

-5%

Profit from continuing operations

815

770

6%

9%

Profit/loss (-) from discontinued operations

8

1

>100%

>100%

Profit

823

771

7%

10%

Attributable to UCB shareholders

800

753

6%

10%

Attributable to non-controlling interests

23

18

26%

32%

Recurring EBITDA

1 398

1 375

2%

5%

Capital expenditure (including intangible assets)

341

209

63%

 

Net financial debt

237

525

-55%

 

Operating cash flow from continuing operations

1 098

896

23%

 

Weighted average number of shares – non-diluted (million)

188

188

0%

 

EPS (€ per weighted average number of shares – non-diluted)

4.24

4.00

6%

6%

Core EPS (€ per weighted average number of shares – non-diluted)

4.78

4.82

-1%

3%

This Business Performance Review is based on the consolidated financial statements for the UCB Group of companies prepared in accordance with IFRS. The separate statutory financial statements of UCB SA prepared in accordance with Belgian Generally Accepted Accounting Principles, together with the report of the Board of Directors to the General Assembly of Shareholders, as well as the auditors’ report, will be filed at the National Bank of Belgium within the statutory periods, and be available on request or on our website.

Education and knowledge of your condition, whatever it is, will help empower you to make better choices. So please, don’t suffer in silence.

Caroline, living with psoriatic arthritis

Scope change: As a result of the divestment of the activities Films (September 2004), Surface Specialties (February 2005), and the divestiture of Kremers Urban Pharmaceuticals Inc. (November 2015), UCB reports the results from those activities as a part of profit from discontinued operations.

Recurring and non-recurring: Transactions and decisions of a one-time nature that affect UCB’s results are shown separately (“non-recurring” items). Besides EBIT (earnings before interest and taxes or operating profit), a line for “recurring EBIT” (REBIT or recurring operating profit), reflecting the on-going profitability of the company’s biopharmaceutical activities, is included. The recurring EBIT is equal to the line “operating profit before impairment, restructuring and other income and expenses” reported in the consolidated financial statements.

Core EPS is the profit attributable to the UCB shareholders, adjusted for the after-tax impact of non-recurring items, the financial one-offs, the after-tax contribution from discontinued operations and the after-tax amortization of intangibles linked to sales, per non-dilutive weighted average number of shares.