Sanofi SA

04/28/2021 | Press release | Distributed by Public on 04/27/2021 23:35

Comptes de résultat - T1 2021 (en anglais)

Business Net income Q1

Business net income statement
First Quarter 2021 Pharmaceuticals Vaccines Consumer Healthcare Others(1) Total Group
€ million Q1 2021 Q1 2020 Change Q1 2021 Q1 2020 Change Q1 2021 Q1 2020 Change Q1 2021 Q1 2020 Change Q1 2021 Q1 2020 Change
Net sales 6,563 6,764 -3.0% 915 909 0.7% 1,113 1,300 -14.4% - - - 8,591 8,973 -4.3%
Other revenues 50 40 25% 231 288 -19.8% 14 15 -6.7% - - - 295 343 -14%
Cost of Sales (1,679) (1,736) -3.3% (579) (607) -4.6% (370) (435) -14.9% (56) (69) -18.8% (2,684) (2,847) -5.7%
As % of net sales -25.6% -25.7% -63.3% -66.8% -33.2% -33.5% -31.2% -31.7%
Gross Profit 4,934 5,068 -2.6% 567 590 -3.9% 757 880 -14.0% (56) (69) -18.8% 6,202 6,469 -4.1%
As % of net sales 75.2% 74.9% 62.0% 64.9% 68.0% 67.7% 72.2% 72.1%
Research and development expenses (978) (1,031) -5.1% (145) (155) -6.5% (28) (32) -12.5% (115) (122) -5.7% (1,266) (1,340) -5.5%
As % of net sales -14.9% -15.2% -15.8% -17.1% -2.5% -2.5% -14.7% -14.9%
Selling and general expenses (1,188) (1,209) -1.7% (170) (180) -5.6% (344) (384) -10.4% (492) (569) -13.5% (2,194) (2,342) -6.3%
As % of net sales -18.1% -17.9% -18.6% -19.8% -30.9% -29.5% -25.5% -26.1%
Other current operating income/expenses (252) (191) 120 3 10 23 21 (82) (101) (247)
Share of profit/loss of associates* and joint ventures (2) 7 8 (1) 1 3 - - - 9 9
Net income attributable to non controlling interests (8) (8) - - (4) (4) - - (12) (12)
Business operating income (3) 2,515 2,637 -4.6% 371 259 43.2% 394 483 -18.4% (642) (842) -23.8% 2,638 2,537 4.0%
As % of net sales 38.3% 39.0% 40.5% 28.5% 35.4% 37.2% 30.7% 28.3%
Financial income and expenses (85) (75)
Income tax expenses (536) (542)
Tax rate** 21.0% 22.0%
Business net income 2,017 1,920 5.1%
As % of net sales 23.5% 21.4%
Business earnings / share(in euros)*** 1.61 1.53 5.2%
* Net of tax.
** Determined on the basis of Business income before tax, associates, and non-controlling interests.
*** Based on an average number of shares outstanding of 1,249.3 million in the first quarter of 2021 and 1,251.3 million in the first quarter of 2020.
(1) Other includes the cost of global support functions (Finance, Human Resources, Information Solution & Technologies, Sanofi Business Services, etc…).
(2) The line "Share of profits of associates and joint-ventures " has been restated in Q1 2020 to exclude any effect of equity method accounting for Regeneron investment as a consequence of the sale of the entire equity investment in Regeneron (with the exception of 400,000 shares retained by Sanofi) on May 29th 2020.
(3) In 2020, reclassification of certain costs from the business segments to the segment "Others"

Consolidated P&L Q1

Consolidated Income Statements
€ million Q1 2021 Q1 2020
Net sales 8,591 8,973
Other revenues 295 343
Cost of sales (2,684) (2,865)
Gross profit 6,202 6,451
Research and development expenses (1,266) (1,340)
Selling and general expenses (2,194) (2,342)
Other operating income 267 108
Other operating expenses (368) (355)
Amortization of intangible assets (389) (457)
Impairment of intangible assets (1) (2) (85)
Fair value remeasurement of contingent consideration (36) 12
Restructuring costs and similar items (156) (66)
Other gains and losses, and litigation (2) - 120
Operating income 2,058 2,046
Financial expenses (99) (98)
Financial income 14 23
Income before tax and associates and joint ventures 1,973 1,971
Income tax expense (404) (434)
Share of profit/(loss) of associates and joint ventures 9 158
Net income 1,578 1,695
Net income attributable to non-controlling interests 12 12
Net income attributable to equity holders of Sanofi 1,566 1,683
Average number of shares outstanding (million) 1249.3 1251.3
IFRS Earnings per share (in euros) 1.25 1.35
(1) In 2020, mainly related to the termination of several Diabetes R&D programs and collaborations agreements as part of Group Strategy announced in December 2019
(2) In 2020, includes mainly the gain on the sale of operations related to the Seprafilm product to Baxter.

Reconciliation Q1

Reconciliation of Net income attributable to equity holders of Sanofi to Business net income
€ million Q1 2021 Q1 2020
Net income attributable to equity holders of Sanofi 1,566 1,683
Amortization of intangible assets (1) 389 457
Impairment of intangible assets (2) 2 85
Fair value remeasurement of contingent consideration 36 (12)
Expenses arising from the impact of acquisitions on inventories - 18
Restructuring costs and similar items 156 66
Other gains and losses, and litigation (3) - (120)
Tax effect of the items listed above: (132) (108)
Amortization and impairment of intangible assets (89) (125)
Fair value remeasurement of contingent consideration (1) (22)
Expenses arising from the impact of acquisitions on inventories - (3)
Restructuring costs and similar items (42) (20)
Other tax effects - 62
Restructuring costs of associates and joint ventures, and expenses arising from the impact of acquisitions on associates and joint ventures - (27)
Effect of discontinuation of use of equity method for Regeneron investment (4) - (122)
Business net income 2,017 1,920
IFRS earnings per share (5) (in euros) 1.25 1.35
(1) Of which related to amortization expense generated by the remeasurement of intangible assets as part of business combinations: €366 million in the first quarter of 2021 and €435 million in the first quarter of 2020.
(2) In 2020, mainly related to the termination of several Diabetes R&D programs and collaborations agreements as part of Group Strategy announced in December 2019
(3) In 2020, includes mainly the gain on the sale of operations related to the Seprafilm product to Baxter.
(4) Our non-GAAP indicator (Business Net Income) does not include the share of income related to equity accounting from Regeneron since it ceased to be an associate on May 29, 2020. As a result, this line reflects that exclusion up to this date.
(5) Q1: Based on an average number of shares outstanding of 1,249.3 million in the first quarter of 2021 and 1,251.3 million in the first quarter of 2020.

Change in net debt Q1

Change in Net Debt
€ million Q1 2021 Q1 2020 (1)
Business net income 2,017 1,920
Depreciation & amortization & impairment of property, plant and equipment and software 347 367
Other non-cash items (44) (2)
Operating cash flow before change in working capital 2,320 2,285
Changes in Working Capital 422 (414)
Acquisitions of property, plant and equipment and software (378) (319)
Free cash flow before restructuring, acquisitions and disposals 2,364 1,552
Acquisitions of intangibles assets, investments and other long-term financial assets (2) (277) (165)
Restructuring costs and similar items paid (244) (277)
Proceeds from disposals of property, plant and equipment, intangible assets and other non-current assets net of taxes (2) 82 448
Free cash flow 1,925 1,558
Acquisitions of investments in consolidated undertakings including assumed debt (3) (21) (2245)
Issuance of Sanofi shares 11 32
Acquisition of treasury shares (140) (361)
Other items 191 (68)
Change in net debt 1,966 (1,084)
Beginning of period 8,789 15,107
Closing of net debt 6,823 16,191
(1) Excluding any effect of equity method accounting for Regeneron investment for comparison purposes.
(2) Free cash flow includes investments and divestments not exceeding a cap of €500 million per transaction (inclusive of all payments related to the transaction).
(3) Includes transactions that are above a cap of €500 million per transaction (inclusive of all payments related to the transaction).