Skip to website navigation Skip to article navigation Skip to content

A page refresh occures when a subject is selected.

Skip article navigation.

1.3. Revenue and recurring EBITDA

1.7 Gross profit

1.7 Gross profit

 

Actual

Variance

€ million

2020

2019

Actual rates

CER

Revenue

5 347

4 913

9%

8%

Net sales

5 052

4 680

8%

7%

Royalty income and fees

96

78

22%

24%

Other revenue

199

155

28%

29%

Cost of sales

-1 363

-1 268

7%

8%

Cost of sales products and services

- 869

- 816

7%

7%

Royalty expenses

- 315

- 298

5%

8%

Amortization of intangible assets linked to sales

- 179

- 154

16%

17%

Gross Profit

3 984

3 645

9%

8%

In 2020, gross profit reached € 3 984 million – and a slightly improved gross margin of 74.5% after 74.2 % in 2019.

Cost of sales has three components: the cost of sales for products and services, royalty expenses, and the amortization of intangible assets linked to sales:

  • The cost of sales for products and services increased to € 869 million – growing slightly slower than the net sales

  • Royalty expenses went up to € 315 million- growing slightly slower than the net sales.

  • Amortization of intangible assets linked to sales: Under IFRS 3, UCB has reflected on its statement of financial position a significant amount of intangible assets relating to acquisitions (in-process research and development, manufacturing know-how, royalty streams, trade names, etc.). The amortization expenses of the intangible assets for which products have already been launched increased to € 179 million, also due to the new indication launches for Cimzia® and the launch of Nayzilam®.