1.1 Key highlights

1.1 Key highlights

  • In 2019 revenue increased by 6% (+7% at constant exchange rates (CER)) to € 4 913 million. Net sales also increased and reached € 4 680 million, a plus of 6% (+7% CER). Net sales before “designated hedging reclassified to net sales” were up by 11% (+7% CER). This growth was driven by the continued strong performance of the core products, accounting for more than 90% of the net sales before hedging. Royalty income and fees were € 78 million, other revenue € 155 million.
  • Recurring EBITDA of € 1 431 million (+2%; +11% CER) was driven by higher marketing and selling expenses due to the Cimzia® launches, Evenity® launch preparation in Europe and higher research and development expenses due to the pipeline progress.
  • Profit was stable at € 817 million after € 823 million (−1%; +15% CER), of which € 792 million is attributable to UCB shareholders and € 25 million to non-controlling interests.
  • Core earnings per share reached € 5.20 (after € 4.78 in 2018) based on an average of 187 million shares outstanding.

 

 

 

 

 

 

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%

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 upon request or on our website.

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/loss from discontinued operations.

Recurring: Transactions and decisions of a one-time nature (impairment, restructuring and other income/expenses) that affect UCB’s results, are shown separately (previously called non-recurring). 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 rEBIT 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 after-tax impact of impairment, restructuring, other income/expenses, financial one-offs; after-tax contribution from discontinued operations and the after-tax amortization of intangibles linked to sales, per non-dilutive weighted average number of shares.