Financial data

Financial data

Key highlights

 

 

 

 

 

 

Actual1

Variance

€ million

2019

2018

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 and excluding hedging

Revenue

4 913

4 632

6%

7%

Net sales

4 680

4 412

6%

7%

Royalty income and fees

78

92

−15%

−21%

Other revenue

155

128

22%

20%

Gross Profit

3 645

3 434

6%

8%

Marketing and selling expenses

−1 108

−964

15%

12%

Research and development expenses

−1 272

−1 161

10%

8%

General and administrative expenses

−195

−180

8%

7%

Other operating income/expenses (−)

48

−24

>100%

>100%

Recurring EBIT (rEBIT)

1 118

1 105

1%

12%

Impairment, restructuring and other income/expenses (−)

−50

4

>−100%

>−100%

EBIT (operating profit)

1 068

1 109

−4%

7%

Net financial expenses

−107

−93

15%

14%

Profit before income taxes

960

1 015

−5%

6%

Income tax expenses

−146

−200

−27%

−26%

Profit from continuing operations

814

815

0%

16%

Profit/loss (−) from discontinued operations

2

8

−71%

−73%

Profit

817

823

−1%

15%

Attributable to UCB shareholders

792

800

−1%

15%

Attributable to non-controlling interests

25

23

8%

2%

Recurring EBITDA

1 431

1 398

2%

11%

Capital expenditure (including intangible assets)

294

341

−14%

 

Net financial cash/debt (−)

12

−237

>100%

 

Operating cash flow from continuing operations

893

1 098

−19%

 

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

187

188

−1%

 

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

4.23

4.24

0%

16%

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

5.20

4.78

9%

24%

Net sales by product

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Immunology

 

 

 

 

Cimzia®

1 712

1 446

18%

14%

Neurology

 

 

 

 

Vimpat®

1 322

1 099

20%

15%

Keppra® (including Keppra® XR/E Keppra®)

770

790

−3%

−5%

Neupro®

319

321

−1%

−3%

Briviact®

221

142

56%

49%

Established brands/Other products

440

514

−14%

−15%

Net sales before hedging

4 784

4 312

11%

7%

Designated hedges reclassified to net sales

−104

100

>−100%

 

Total net sales

4 680

4 412

6%

7%

 

 

 

 

 

Net sales by geographical area

 

 

 

 

 

 

 

 

Actual

Variance actual rates

Variance CER

€ million

2019

2018

€ million

%

€ million

%

Net sales U.S.

2 546

2 158

388

18%

256

12%

Cimzia®

1 088

896

192

21%

136

15%

Vimpat®

1 001

822

179

22%

127

15%

Keppra®

189

221

−32

−14%

−42

−19%

Briviact®

170

109

61

56%

52

48%

Neupro®

97

101

−4

−4%

−9

−9%

Established brands/Other products

1

9

−9

−95%

−9

−95%

Net sales Europe

1 332

1 325

7

1%

8

1%

Cimzia®

429

400

30

7%

29

7%

Keppra®

196

216

−20

−9%

−20

−9%

Vimpat®

236

206

29

14%

29

14%

Neupro®

170

174

−4

−2%

−4

−2%

Briviact®

45

29

16

53%

16

53%

Established brands/Other products

256

300

−43

−14%

−42

−14%

Net sales international markets

906

829

76

9%

53

6%

Keppra® (including E Keppra®)

385

352

32

9%

21

6%

Cimzia®

194

150

45

30%

42

28%

Vimpat®

86

70

15

22%

12

17%

Neupro®

52

46

6

12%

3

7%

Briviact®

6

4

2

57%

2

55%

Established brands/Other products

183

207

−23

−11%

−27

−13%

Net sales before hedging

4 784

4 312

472

11%

317

7%

Designated hedges reclassified to net sales

−104

100

−204

>−100%

 

 

Total net sales

4 680

4 412

268

6%

317

7%

 

 

 

 

 

 

 

Royalty income and fees

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Biotechnology IP

38

56

−32%

−38%

Zyrtec® U.S.

11

12

−3%

−8%

Toviaz®

19

19

−3%

−8%

Other

11

5

>100%

85%

Royalty income and fees

78

92

−15%

−21%

 

 

 

 

 

Other revenue

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Contract manufacturing sales

109

83

32%

31%

Partnerships in Japan

20

8

>100%

>100%

Product profit sharing

0

11

−100%

−100%

Other

26

26

−1%

−6%

Other revenue

155

128

22%

20%

 

 

 

 

 

Gross profit

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Revenue

4 913

4 632

6%

7%

Net sales

4 680

4 412

6%

7%

Royalty income and fees

78

92

−15%

−21%

Other revenue

155

128

22%

20%

Cost of sales

−1 268

−1 198

6%

4%

Cost of sales products and services

−816

−823

−1%

−1%

Royalty expenses

−298

−241

24%

18%

Amortization of intangible assets linked to sales

−154

−134

14%

13%

Gross Profit

3 645

3 434

6%

8%

 

 

 

 

 

Recurring EBIT and recurring EBITDA

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Revenue

4 913

4 632

6%

7%

Net sales

4 680

4 412

6%

7%

Royalty income and fees

78

92

−15%

−21%

Other revenue

155

128

22%

20%

Gross Profit

3 645

3 434

6%

8%

Marketing and selling expenses

−1 108

−964

15%

12%

Research and development expenses

−1 272

−1 161

10%

8%

General and administrative expenses

−195

−180

8%

7%

Other operating income/expenses (−)

48

−24

>100%

>100%

Total operating expenses

−2 527

−2 329

9%

6%

Recurring EBIT (rEBIT)

1 118

1 105

1%

12%

Add: Amortization of intangible assets

190

170

12%

10%

Add: Depreciation charges

123

123

0%

−2%

Recurring EBITDA (rEBITDA)

1 431

1 398

2%

11%

 

 

 

 

 

Net profit

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Recurring EBIT

1 118

1 105

1%

12%

Impairment charges

−2

0

N/A

N/A

Restructuring expenses

−47

−20

>100%

>100%

Gain on disposals

41

47

−12%

−12%

Other income/expenses (−)

−42

−23

86%

84%

Total impairment, restructuring and other income/expenses (−)

−50

4

>−100%

>−100%

EBIT (operating profit)

1 068

1 109

−4%

7%

Net financial expenses (−)

−107

−93

15%

14%

Result from associates

−1

−1

−48%

−48%

Profit before income taxes

960

1 015

−5%

6%

Income tax expenses

−146

−200

−27%

−26%

Profit from continuing operations

814

815

0%

16%

Profit/loss (−) from discontinued operations

2

8

−71%

−73%

Profit

817

823

−1%

15%

Attributable to UCB shareholders

792

800

−1%

15%

Attributable to non-controlling interests

25

23

8%

2%

Profit attributable to UCB shareholders

792

800

−1%

15%

 

 

 

 

 

Core EPS

 

 

 

 

 

 

Actual

Variance

€ million

2019

2018

Actual rates

CER

Profit

817

823

−1%

15%

Attributable to UCB shareholders

792

800

−1%

15%

Attributable to non-controlling interests

25

23

8%

2%

Profit attributable to UCB shareholders

792

800

−1%

15%

Total impairment, restructuring and other income (−)/expenses

50

−4

>−100%

>−100%

Income tax on impairment, restructuring and other expenses (−)/credit

−1

7

>−100%

>−100%

Profit (−)/loss from discontinued operations

−2

−8

−71%

−73%

Amortization of intangibles linked to sales

154

134

14%

13%

Income tax on amortization of intangibles linked to sales

−17

−28

−39%

−39%

Core profit attributable to UCB shareholders

974

901

8%

23%

Weighted average number of shares (million)

187

188

−1%

 

Core EPS attributable to UCB shareholders (€)

5.20

4.78

9%

24%

 

 

 

 

 

Consolidated income statement

For the year ended 31 December

 

 

 

€ million

Note

2019

2018

Continuing operations

 

 

 

Net Sales

5

4 680

4 412

Royalty income and fees

 

78

92

Other revenue

9

155

128

Revenue

 

4 913

4 632

Cost of sales

 

−1 268

−1 198

Gross profit

 

3 645

3 434

Marketing and selling expenses

 

−1 108

−964

Research and development expenses

 

−1 272

−1 161

General and administrative expenses

 

−195

−180

Other operating income/expenses (−)

12

48

−24

Operating profit before impairment, restructuring
and other income and expenses

 

1 118

1 105

Impairment of non-financial assets

13

−2

0

Restructuring expenses

14

−47

−20

Other income/expenses (−)

15

−1

24

Operating profit

 

1 068

1 109

Financial income

16

18

16

Financial expenses

16

−125

−109

Share of loss of associates

 

−1

−1

Profit before income taxes

 

960

1 015

Income tax expense

17

−146

−200

Profit from continuing operations

 

814

815

Discontinued operations

 

 

 

Profit/loss (−) from discontinued operations

8

2

8

Profit

 

817

823

Attributable to:

 

 

 

Equity holders of UCB SA

 

792

800

Non-controlling interests

 

25

23

Basic earnings per share (€)

 

 

 

from continuing operations

40

4.22

4.20

from discontinued operations

40

0.01

0.04

Total basic earnings per share

 

4.23

4.24

Diluted earnings per share (€)

 

 

 

from continuing operations

40

4.22

4.20

from discontinued operations

40

0.01

0.04

Total diluted earnings per share

 

4.23

4.24

 

 

 

 

Consolidated statement of comprehensive income

For the year ended 31 December

 

 

 

€ million

Note

2019

2018

Profit for the period

 

817

823

Other comprehensive income

 

 

 

Items to be reclassified to profit or loss in subsequent periods:

 

 

 

- Net gain/loss (−) on financial assets at FVOCI

 

14

−35

- Exchange differences on translation of foreign operations

 

96

65

- Effective portion of gains/losses (−) on cash flow hedges

 

36

−194

- Income tax relating to the components of other comprehensive income to be reclassified to profit or loss in subsequent periods

 

19

53

Items not to be reclassified to profit or loss in subsequent periods:

 

 

 

- Remeasurement of defined benefit obligation

32

28

12

- Income tax relating to the components of other comprehensive income not to be reclassified to profit or loss in subsequent periods

 

1

−3

Other comprehensive income/loss (−) for the period, net of tax

 

194

−102

Total comprehensive income for the period, net of tax

 

1 011

721

Attributable to:

 

 

 

Equity holders of UCB SA

 

986

699

Non-controlling interests

 

25

22

Total comprehensive income for the period, net of tax

 

1 011

721

 

 

 

 

Consolidated statement of financial position

 

 

 

 

€ million

Note

2019

2018

Income tax payables for which it is expected that the settlement will be done at least 12 months after the balance sheet date, are classified as non-current liabilities as per 31 December 2019. Comparative amounts for 2018 have been adjusted.

Assets

 

 

 

Non-current assets

 

 

 

Intangible assets

19

839

870

Goodwill

20

5 059

4 970

Property, plant and equipment

21

840

805

Deferred income tax assets

31

873

760

Financial and other assets (including derivative financial instruments)

22

175

159

Total non-current assets

 

7 786

7 564

Current assets

 

 

 

Inventories

23

780

647

Trade and other receivables

24

950

835

Income tax receivables

 

59

81

Financial and other assets (including derivative financial instruments)

22

163

105

Cash and cash equivalents

25

1 293

1 262

Assets of disposal group classified as held for sale

8.2

50

20

Total current assets

 

3 295

2 950

Total assets

 

11 081

10 514

Equity and liabilities

 

 

 

Equity

 

 

 

Capital and reserves attributable to UCB shareholders

26

7 039

6 310

Non-controlling interests

22.6

−30

−55

Total equity

 

7 009

6 255

Non-current liabilities

 

 

 

Borrowings

28

79

198

Bonds

29

896

1 152

Other financial liabilities (including derivative financial instruments)

30

1

32

Deferred income tax liabilities

31

51

39

Employee benefits

32

382

419

Provisions

33

146

155

Trade and other liabilities

34

32

26

Income tax payables1

35

91

86

Total non-current liabilities

 

1 678

2 107

Current liabilities

 

 

 

Borrowings

28

56

74

Bonds

29

250

75

Other financial liabilities (including derivative financial instruments)

30

70

133

Provisions

33

72

51

Trade and other liabilities

34

1 856

1 786

Income tax payables

35

81

33

Liabilities of disposal group classified as held for sale

8.2

9

0

Total current liabilities

 

2 394

2 152

Total liabilities

 

4 072

4 259

Total equity and liabilities

 

11 081

10 514

Consolidated statement of cash flows

For the year ended 31 December

 

 

 

€ million

Note

2019

2018

Profit for the year attributable to UCB shareholders

 

792

800

Non-controlling interests

 

25

24

Adjustment for profit (−)/loss from discontinued operations

8

−1

−11

Adjustment for profit (−)/loss from associates

 

1

1

Adjustment for non-cash transactions

36

231

254

Adjustment for items to disclose separately under operating cash flow

36

144

202

Adjustment for items to disclose under investing and financing cash flows

36

−7

2

Change in working capital

36

−232

−35

Interest received

16

18

20

Cash flow generated from operations

 

971

1 257

Tax paid during the period

 

−89

−168

Net cash flow used in (−)/generated by operating activities:

 

 

 

From continuing operations

 

893

1 098

From discontinued operations

 

−11

−9

Net cash flow generated by operating activities

 

882

1 089

Acquisition of property, plant and equipment

21

−99

−94

Acquisition of intangible assets

19

−195

−247

Acquisition of subsidiaries, net of cash acquired

 

0

−13

Acquisition of other investments

 

−20

−21

Sub-total acquisitions

 

−314

−375

Proceeds from sale of property, plant and equipment

 

31

1

Proceeds from sale of other activities, net of cash disposed

 

41

52

Proceeds from sale of other investments

 

7

2

Sub-total disposals

 

79

55

Net cash flow used in (−)/generated by investing activities:

 

 

 

From continuing operations

 

−235

−320

From discontinued operations

 

0

0

Net cash flow used in (−)/generated by investing activities:

 

−235

−320

Repayment of bonds (−)

29.3

−75

0

Proceeds from borrowings

28

0

8

Repayments of borrowings (−)

28

−118

−177

Payment of lease liabilities

28

−48

−33

Acquisition (−) of treasury shares

26

−77

−51

Dividend paid to UCB shareholders, net of dividend paid on own shares

26.2, 41

−228

−222

Interest paid

16

−59

−63

Net cash flow used in (−)/generated by financing activities:

 

 

 

From continuing operations

 

−605

−538

From discontinued operations

 

0

0

Net cash flow used in (−) financing activities

 

−605

−538

Net increase/decrease (−) in cash and cash equivalents

 

42

231

From continuing operations

 

53

240

From discontinued operations

 

−11

−9

Net cash and cash equivalents at the beginning of the period

 

1 237

1 022

Effect of exchange rate fluctuations

 

9

−16

Net cash and cash equivalents at the end of the period

 

1 288

1 237

 

 

 

 

Consolidated statement of changes in equity

 

 

 

 

 

 

 

 

 

 

 

2019

Attributed to equity holders of UCB SA

 

 

€ million

Share capital and share premium

Treasury shares

Retained earnings

Other reserves

Cumulative translation adjustments

Financial assets at FVOCI

Cash flow hedges

Total

Non-controlling interests

Total stock­holders’ equity

Balance at 1 January 2019

2 614

−342

4 394

−146

−154

−5

−51

6 310

−55

6 255

Profit for the period

792

792

25

817

Other comprehensive income/loss (−)

29

96

14

55

194

194

Total comprehensive income

792

29

96

14

55

986

25

1 011

Dividends (Note 41)

−228

−228

−228

Share-based payments (Note 27)

58

58

58

Transfer between reserves

52

−52

Treasury shares (Note 26)

−87

−87

−87

Balance at 31 December 2019

2 614

−377

4 964

−117

−58

9

4

7 039

−30

7 009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

Attributed to equity holders of UCB SA

 

 

€ million

Share capital and share premium

Treasury shares

Retained earnings

Other reserves

Cumulative translation adjustments

Financial assets at FVOCI

Cash flow hedges

Total

Non-controlling interests

Total stock­holders’ equity

Balance at 1 January 2018

2 614

−357

3 811

−155

−220

30

90

5 813

−77

5 736

Profit for the period

800

800

23

823

Other comprehensive income/loss (−)

9

66

−35

−141

−101

−1

−102

Total comprehensive income

800

9

66

−35

−141

699

22

721

Dividends (Note 41)

−222

−222

−222

Share-based payments (Note 27)

58

58

58

Transfer between reserves

53

−53

Treasury shares (Note 26)

−38

−38

−38

Balance at 31 December 2018

2 614

−342

4 394

−146

−154

−5

−51

6 310

−55

6 255