1.4 Net profit

1.4 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%

 

 

 

 

 

Total impairment, restructuring and other income/expenses (−) amounted to € 50 million expenses (after an income of € 4 million in 2018) and include restructuring expenses, legal and litigation costs, partially offset with income resulting from gain on the divestitures. In 2019, UCB strengthened its operating model to ensure maximum agility to meet the growth expectations for the years ahead, hence the restructuring expenses.

Net financial expenses reached € 107 million from € 93 million in 2018.

Income tax expenses were € 146 million compared to € 200 million in 2018. The average effective tax rate was 15% compared to 20% in 2018. The 2019 effective tax rate is driven by the higher group revenue and the increasing impact of R&D related tax deductions in key countries.

Profit from discontinued operations was € 2 million after € 8 million.

The profit of the Group amounted to € 817 million (after € 823 million), of which € 792 million is attributable to UCB shareholders and € 25 million to non-controlling interests. For 2018, profit was € 823 million and of which € 800 million were attributable to UCB shareholders and € 23 million to non-controlling interests.