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