Core products boost UCB 2013 sales, but profits disappoint

Belgium’s largest drugmaker UCB (Euronext Brussels: UCB) this morning reported financial results for 2013, with gross profit reached 2.297 billion euros ($3.16 billion), 3% lower than in 2012; +2% at constant rates in-line with the revenue evolution. UCB’s shares dipped 1.2% to 52.38 euros in early trading.

Underlying profitability, recurring earnings before interest, tax, depreciation and amortization (EBITDA), rose 1% reaching 689 million euros, a little lower than the 693 million euros expected by 12 analysts polled by Reuters, and reflected adverse exchange rate impacts, lower marketing & selling and stable R&D expenses. Due to the higher tax expenses, net profit amounted to 200 million euros versus 244 million euros in 2012. Core earnings per share (EPS), which reflect the after tax effects of non-recurring items, financial one-offs and amortization of intangibles, reached 1.93 euros based on 182 million weighted average shares outstanding in 2013 from 2.10 euros based on 179.3 million shares in 2012, the company noted.

Revenue in 2013 reached 3.41 billion (-1%; +2% at constant exchange rates). Currency fluctuations brought net sales down 1% to 3.05 billion euros. At constant currency rates, net sales increased by 3% due to the solid performance of Cimzia (certolizumab pegol), Vimpat (lacosamide) and Neupro (rotigotine) and net sales growth in emerging markets (+13%; +17% at constant rates) to 313 million euros.