Regulatory News:
Ipsen (Euronext: IPN; ADR: IPSEY), a global specialty-driven
biopharmaceutical group, today announced financial results for the
first half of 2019.
Extract of audited consolidated results for
H1 2019 and 2018
(in million euros)
H1 2019
H1 2018
%
change
% Variation at constant
currency and
consolidation scope1
Group net sales
1,229.6
1,064.5
+15.5%
+14.3%
Specialty Care sales
1,100.0
920.2
+19.5%
+16.9%
Consumer Healthcare sales
129.6
144.3
-10.2%
-3.7%
CORE
Core Operating Income
387.5
322.5
+20.1%
Core Operating margin (as a % net
sales)
31.5%
30.3%
+1.2 pts
Core consolidated net profit
283.0
237.1
+19.3%
Core EPS – fully diluted (€)
3.38
2.86
+18.5%
IFRS
Operating Income
317.8
269.7
+17.8%
Operating margin (as a % net
sales)
25.8%
25.3%
+0.5 pts
Consolidated net profit
220.6
197.3
+11.8%
EPS – fully diluted (€)
2.64
2.38
+10.9%
David Meek, Chief Executive Officer of Ipsen, stated: “In
the first half of 2019, the strong operational execution of our
growth strategy led to robust double-digit sales growth, continued
Core Operating margin expansion and an upgrade in our sales
guidance for full year 2019. The value of our pipeline was further
strengthened by the closing of the Clementia acquisition and
promising interim Phase 2 data for Onivyde in first-line pancreatic
cancer. Going forward, we will continue to advance our strategic
priorities to deliver sustained top-line, bottom-line and pipeline
growth.”
Upgraded Full Year 2019
guidance
- Group sales growth greater than +14.0% at constant
currency and consolidation scope1 (versus initial guidance of
greater than +13.0%)
- Impact of currencies estimated at +1.5% based on the current
level of exchange rates
- Impact of consolidation scope reflecting the consolidation
under the equity method for joint arrangements related to the
Schwabe partnership estimated at -1.0%
- Core Operating margin at around 30.0% of net sales,
including the impact of Clementia but excluding potential
incremental investments in pipeline expansion initiatives
Initial guidance
Updated guidance
Sales growth1
> +13.0%
> +14.0%
Core Operating margin (as a % of net
sales)
around 30.0%
around 30.0%
1 Subsidiaries involved in the partnership between Ipsen and
Schwabe Group are consolidated in accordance with the equity method
starting 1 January, 2019. Year-on-year growth excluding foreign
exchange impact established by recalculating net sales for the
relevant period at the rate used for the previous period.
Q2 2019 Pipeline
highlights
- 17 April: Completion of the Clementia Pharmaceuticals
acquisition
- 24 June: U.S. FDA approval of the Somatuline New Delivery
System
- 5 July: Presentation at ESMO-GI of promising interim data from
the Phase 1/2 study of the investigational use of Onivyde® in
combination with 5-fluorouracil/leucovorin (5-FU/LV) and
oxaliplatin (OX) in study patients with previously untreated
metastatic pancreatic ductal adenocarcinoma cancer (PDAC)
H1 2019 Financial
highlights
- Group sales growth of 15.5% as reported and 14.3% at constant
exchange rates and consolidation scope1, driven by the strong
performance of Specialty Care across all major products and
geographies.
- Core Operating margin at 31.5% of net sales, up 1.2 points and
Core Operating Income growth of 20.1% after higher R&D
investments including Clementia
IFRS operating margin at 25.8% of net sales, up 0.5 points and
IFRS Operating Income growth of 17.8%.
Refinancing update
- Full refinancing following the acquisition of Clementia
Pharmaceuticals to increase debt capacity for future business
development, extend the maturity horizon and diversify sources of
financing.
- 24 May: Signature of a new 5-year revolving credit facility
(RCF) of €1.5 billion with two possible one-year extensions to
replace existing bank facilities with specific indicators linked to
CSR (Corporate Social Responsibility).
- 23 July: Closing of a $300 million dual-tranche issuance of
notes with 7- and 10-year maturities on the U.S. market (U.S.
Private Placement - USPP) from a group of long-term U.S.
investors.
First issuance in the private placement market and in the U.S.
debt market for the company, illustrating the high level of
confidence of investors in Ipsen and in the quality of its credit
profile.
The transaction in this press release is not an offer for sale
of the securities in the United States. No public offering of the
securities will be made in the United States. The securities have
not been registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and may not be sold in the United
States absent registration or an exemption from registration under
the Securities Act.
1 Subsidiaries involved in the partnership between Ipsen and
Schwabe Group are consolidated in accordance with the equity method
starting 1 January, 2019. Year-on-year growth excluding foreign
exchange impact established by recalculating net sales for the
relevant period at the rate used for the previous period.
Review of the first half 2019
results
Note: Unless stated otherwise,
all variations of year-on-year sales are stated at constant
exchange rates and consolidation scope. Subsidiaries involved in
the partnership between Ipsen and Schwabe Group are consolidated in
accordance with the equity method starting 1 January, 2019.
Year-on-year growth excluding foreign exchange impact established
by recalculating net sales for the relevant period at the rate used
for the previous period.
Group sales reached €1,229.6 million, up 14.3%
year-on-year.
Specialty Care sales reached
€1,100.0 million, up 16.9%, driven by the growth in Oncology of
+20.7% from the continuous growth of Cabometyx® and
Onivyde® as well as Somatuline® and
Decapeptyl® across all geographies.
Consumer Healthcare sales
reached €129.6 million, down 3.7%, mainly from the competitive
environment for Smecta® in China.
Core Operating Income was €387.5 million, up 20.1%,
driven by the growth of Specialty Care sales, a sound management of
Selling expenses and an increased investment in Research and
Development (including Clementia costs from Q2 2019).
Core Operating margin reached 31.5% of
sales, up 1.2 points versus the first half of 2018 despite the
dilutive impact of Clementia expenses.
Core consolidated net profit was €283.0 million, compared
to €237.1 million in 2018, up 19.3%, after increased financing
costs mainly linked to the Clementia acquisition.
Core earnings per share fully diluted grew by 18.5% to
reach €3.38, compared to €2.86 in 2018.
IFRS Operating Income was €317.8 million after amortization of
intangible assets and higher Other operating expenses, mainly
related to Clementia integration costs and costs arising from the
Group’s transformation programs. Operating Income margin of 25.8%
is up 0.5 points compared to the first half of 2018.
IFRS Consolidated net profit was €220.6 million versus €197.3 million in
2018, up 11.8% impacted by the Onivyde® revised contingent earn-out
and milestones accounting following the recent publication of
positive results related to the ongoing developments on
Onivyde®.
IFRS Fully diluted EPS (Earnings per
share) was €2.64 versus €2.38 in 2018, up 10.9%.
Free Cash Flow reached €101.0 million, down by €63.5
million versus 2018, mainly driven by a lower Operating Cash Flow
combined with higher Other operating expenses and Restructuring
costs.
Closing net debt reached €1,499.5 million at the end of
June 2019, versus €438.0 million at the end of June 2018, notably
after the impact of Clementia’s acquisition for €986 million and of
IFRS16 – Leases standard implemented starting 1 January 2019 for
€188 million.
The company’s auditors performed a limited review of the
accounts.
The interim financial report, with regard to regulated
information, is available on the Group's website, under the
Regulated Information tab in the Investor Relations section.
Conference call
Ipsen will hold a conference call Thursday, 25 July 2019 at 2:30
p.m. (Paris time, GMT+1). Participants should dial in to the call
approximately five to ten minutes prior to its start. No
reservation is required to participate in the conference call.
Standard International: +44 (0) 2071-928-000 France and
continental Europe: + 33 (0) 1 76 70 07 94 UK: 08-445-718-892
United States: 1-6315-107-495
Conference ID: 3574629
A recording will be available for seven days on Ipsen’s
website.
About Ipsen
Ipsen is a global specialty-driven biopharmaceutical group
focused on innovation and Specialty Care. The group develops and
commercializes innovative medicines in three key therapeutic areas
- Oncology, Neuroscience and Rare Diseases. Its commitment to
Oncology is exemplified through its growing portfolio of key
therapies for prostate cancer, neuroendocrine tumors, renal cell
carcinoma and pancreatic cancer. Ipsen also has a well-established
Consumer Healthcare business. With total sales over €2.2billion in
2018, Ipsen sells more than 20 drugs in over 115 countries, with a
direct commercial presence in more than 30 countries. Ipsen's
R&D is focused on its innovative and differentiated
technological platforms located in the heart of the leading
biotechnological and life sciences hubs (Paris-Saclay, France;
Oxford, UK; Cambridge, US). The Group has about 5,700 employees
worldwide. Ipsen is listed in Paris (Euronext: IPN) and in the
United States through a Sponsored Level I American Depositary
Receipt program (ADR: IPSEY). For more information on Ipsen, visit
www.ipsen.com.
Forward Looking Statement
The forward-looking statements, objectives and targets contained
herein are based on the Group’s management strategy, current views
and assumptions. Such statements involve known and unknown risks
and uncertainties that may cause actual results, performance or
events to differ materially from those anticipated herein. All of
the above risks could affect the Group’s future ability to achieve
its financial targets, which were set assuming reasonable
macroeconomic conditions based on the information available today.
Use of the words "believes", "anticipates" and "expects" and
similar expressions are intended to identify forward-looking
statements, including the Group’s expectations regarding future
events, including regulatory filings and determinations. Moreover,
the targets described in this document were prepared without taking
into account external growth assumptions and potential future
acquisitions, which may alter these parameters. These objectives
are based on data and assumptions regarded as reasonable by the
Group. These targets depend on conditions or facts likely to happen
in the future, and not exclusively on historical data. Actual
results may depart significantly from these targets given the
occurrence of certain risks and uncertainties, notably the fact
that a promising product in early development phase or clinical
trial may end up never being launched on the market or reaching its
commercial targets, notably for regulatory or competition reasons.
The Group must face or might face competition from generic products
that might translate into a loss of market share. Furthermore, the
Research and Development process involves several stages each of
which involves the substantial risk that the Group may fail to
achieve its objectives and be forced to abandon its efforts with
regards to a product in which it has invested significant sums.
Therefore, the Group cannot be certain that favorable results
obtained during pre-clinical trials will be confirmed subsequently
during clinical trials, or that the results of clinical trials will
be sufficient to demonstrate the safe and effective nature of the
product concerned. There can be no guarantees a product will
receive the necessary regulatory approvals or that the product will
prove to be commercially successful. If underlying assumptions
prove inaccurate or risks or uncertainties materialize, actual
results may differ materially from those set forth in the
forward-looking statements. Other risks and uncertainties include
but are not limited to, general industry conditions and
competition; general economic factors, including interest rate and
currency exchange rate fluctuations; the impact of pharmaceutical
industry regulation and health care legislation; global trends
toward health care cost containment; technological advances, new
products and patents attained by competitors; challenges inherent
in new product development, including obtaining regulatory
approval; the Group's ability to accurately predict future market
conditions; manufacturing difficulties or delays; financial
instability of international economies and sovereign risk;
dependence on the effectiveness of the Group’s patents and other
protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory actions.
The Group also depends on third parties to develop and market some
of its products which could potentially generate substantial
royalties; these partners could behave in such ways which could
cause damage to the Group’s activities and financial results. The
Group cannot be certain that its partners will fulfil their
obligations. It might be unable to obtain any benefit from those
agreements. A default by any of the Group’s partners could generate
lower revenues than expected. Such situations could have a negative
impact on the Group’s business, financial position or performance.
The Group expressly disclaims any obligation or undertaking to
update or revise any forward-looking statements, targets or
estimates contained in this press release to reflect any change in
events, conditions, assumptions or circumstances on which any such
statements are based, unless so required by applicable law. The
Group’s business is subject to the risk factors outlined in its
registration documents filed with the French Autorité des Marchés
Financiers. The risks and uncertainties set out are not exhaustive
and the reader is advised to refer to the Group’s 2018 Registration
Document available on its website (www.ipsen.com).
Comparison of Consolidated Sales for the Second Quarter and
First Half 2019 and 2018:
All variations in sales are stated excluding foreign exchange
impacts, established by recalculating net sales for the relevant
period at the rates from the previous period.
Subsidiaries involved in the partnership between Ipsen and
Schwabe Group are consolidated in accordance with the equity method
starting 1 January, 2019. Group and Consumer Healthcare variations
in sales presented below are restated to exclude 2018 sales from
the Schwabe partnership.
Sales by therapeutic area and by product
2nd Quarter
6 Months
(in million euros)
2019
2018
% Variation
% Variation at constant currency
and consolidation scope
2019
2018
% Variation
% Variation at constant currency
and consolidation scope
Oncology
458.4
372.4
23.1%
20.3%
879.1
709.7
23.9%
20.7%
Somatuline®
243.5
206.9
17.7%
14.0%
478.9
402.6
19.0%
14.8%
Decapeptyl®
109.6
100.2
9.5%
9.1%
198.4
183.3
8.2%
7.9%
Cabometyx®
57.9
33.8
71.2%
71.3%
111.8
62.0
80.3%
80.3%
Onivyde®
39.8
25.1
58.4%
47.8%
74.4
48.9
52.3%
41.6%
Other Oncology
7.6
6.4
19.9%
19.4%
15.6
13.0
20.1%
19.8%
Neuroscience
93.4
89.5
4.4%
3.5%
187.7
174.5
7.6%
6.5%
Dysport®
92.5
88.4
4.7%
3.7%
186.3
172.8
7.8%
6.8%
Rare Diseases
17.3
17.9
-3.4%
-4.8%
33.1
36.0
-7.9%
-9.4%
NutropinAq®
11.4
12.0
-5.2%
-5.0%
21.9
24.1
-9.4%
-9.3%
Increlex®
6.0
5.9
0.2%
-4.3%
11.3
11.8
-4.7%
-9.5%
Specialty Care
569.1
479.8
18.6%
16.2%
1,100.0
920.2
19.5%
16.9%
Smecta®
28.0
33.3
-16.0%
-16.3%
57.9
62.4
-7.3%
-7.7%
Forlax®
10.6
8.9
19.1%
18.9%
19.1
19.1
-0.3%
-0.4%
Tanakan®
8.2
8.1
1.2%
0.9%
17.6
15.9
10.7%
10.8%
Fortrans/Eziclen®
8.9
8.0
10.9%
10.6%
16.7
14.0
19.7%
19.6%
Other Consumer Healthcare
7.7
16.1
-52.3%
-35.6%
18.4
32.9
-44.2%
-19.7%
Consumer Healthcare
63.3
74.4
-14.9%
-10.1%
129.6
144.3
-10.2%
-3.7%
Group Sales
632.4
554.2
14.1%
12.9%
1,229.6
1,064.5
15.5%
14.3%
In the first half of 2019, Group sales reached €1,229.6
million, up 14.3%, driven by Specialty Care sales growth of 16.9%,
while Consumer Healthcare sales decreased by 3.7%.
Specialty Care sales amounted to €1,100.0 million, up
16.9%. Oncology and Neuroscience sales grew by 20.7% and 6.5%,
respectively, while Rare Diseases sales decreased by 9.4%. Over the
period, the relative weight of Specialty Care continued to increase
to reach 89.5% of total Group sales, compared to 86.4% in 2018.
In Oncology, sales reached €879.1 million, up 20.7%
year-on-year, driven by continued strong performance across all
major products and geographies. Over the period, Oncology sales
represented 71.5% of total Group sales, compared to 66.7% in
2018.
Somatuline® – Sales reached €478.9
million, up 14.8% year-on-year, driven by 19.6% growth in North
America primarily from volume growth, as well as by continued
double-digit growth in Europe.
Decapeptyl® – Sales reached €198.4
million, up 7.9% year-on-year, driven by volume growth in major
Western European countries, good sales performance in China and by
higher sales in Latin America, Middle East and Asia.
Cabometyx® – Sales reached €111.8
million, up 80.3% year-on-year, driven by good performance in all
European countries, as well as launches in Canada and in several
countries in Asia and Oceania.
Onivyde® – Sales reached €74.4
million, up 41.6% year on year, including growing demand in the
U.S. and a high level of sales to Ipsen’s ex-U.S. partner.
In Neuroscience, sales of Dysport® reached €186.3
million, up 6.8%, driven by the good performance in the U.S. both
in the therapeutics and aesthetics markets. In the second quarter
of 2019, Dysport performance was impacted by the phasing of
shipments to our aesthetics partner in Europe. Over the period,
Neuroscience sales represented 15.3% of total Group sales, compared
to 16.4% in 2018.
In Rare Diseases, sales of NutropinAq® reached
€21.9 million, down 9.3% year-on-year, impacted by lower volumes
across Europe. Sales of Increlex® reached €11.3 million,
down 9.5% year-on-year mainly due to lower demand in the U.S. Over
the period, Rare Diseases sales represented 2.7% of total Group
sales, compared to 3.4% in 2018.
Consumer Healthcare sales reached €129.6 million, down
3.7%, impacted by a decline in Smecta® sales of 7.7% year-on-year
mainly due to the new hospital competitive environment in China and
some manufacturing delays in Algeria. Fortrans/Eziclen® sales were
up 19.6% year-on-year driven by Russia. Tanakan® year-on-year
growth reached 10.8%, due to the low 2018 Vietnam baseline and the
good performance in Russia. Over the period, Consumer Healthcare
sales represented 10.5% of total Group sales, compared to 13.6% in
2018.
Sales by geographical area
2nd Quarter
6 Months
(in million euros)
2019
2018
% Variation
% Variation at constant currency
and consolidation scope
2019
2018
% Variation
% Variation at constant currency
and consolidation scope
France
86.8
65.5
32.5%
31.0%
168.8
133.7
26.3%
25.3%
Germany
49.2
46.8
5.1%
15.6%
94.6
91.0
3.9%
16.8%
Italy
30.2
26.9
12.3%
12.3%
60.0
53.1
12.9%
12.9%
Spain
27.0
23.1
17.2%
17.2%
50.8
44.0
15.4%
15.4%
United Kingdom
25.4
24.0
5.8%
4.7%
50.6
46.5
8.7%
7.9%
Major Western European
countries
218.6
186.3
17.4%
19.4%
424.7
368.4
15.3%
18.1%
Eastern Europe
53.8
50.1
7.3%
7.4%
101.6
92.6
9.7%
10.9%
Others Europe
61.9
61.7
0.3%
2.1%
127.7
127.9
-0.2%
0.9%
Other European Countries
115.7
111.9
3.4%
4.5%
229.2
220.5
4.0%
5.0%
North America
181.8
144.5
25.8%
18.2%
361.0
278.1
29.8%
21.0%
Asia
54.6
54.8
-0.4%
-0.8%
105.0
94.3
11.4%
10.0%
Other countries in the Rest of
the World
61.7
56.7
8.8%
7.6%
109.6
103.3
6.2%
5.9%
Rest of the World
116.3
111.5
4.3%
3.5%
214.6
197.5
8.7%
7.8%
Group Sales
632.4
554.2
14.1%
12.9%
1,229.6
1,064.5
15.5%
14.3%
Sales in Major Western European countries reached €424.7
million, up 18.1% year-on-year. Over the period, sales in Major
Western European countries represented 34.5% of total Group sales,
compared to 34.6% in 2018.
France – Sales reached €168.8 million,
up 25.3% year-on-year, driven by the continued Cabometyx® launch
ramp-up, sustained growth of Somatuline®, Decapeptyl®, and
Prontalgine® as well as the contribution of Onivyde® sales to
Ipsen’s ex-U.S. partner since September 2018.
Germany – Sales reached €94.6 million,
up 16.8% year-on-year, driven by Cabometyx® which was supported by
the launch in first-line renal cell carcinoma (RCC) and second-line
hepatocellular cell carcinoma (HCC) and the strong double-digit
growth of Somatuline®.
Italy – Sales reached €60.0 million,
up 12.9% year-on-year, mainly driven by Cabometyx®, double-digit
growth of Somatuline® and solid performance of Decapeptyl®.
Spain – Sales reached €50.8 million,
up 15.4% year-on-year, driven by the increasing contribution from
Cabometyx® and the strong growth of Somatuline®.
United Kingdom – Sales reached €50.6
million, up 7.9% year-on-year, driven by the strong performance of
Somatuline® and Decapeptyl® as well as the contribution from
Cabometyx®.
Sales in Other European countries reached €229.2 million,
up 5.0% year-on-year, driven by the launch of Cabometyx® in certain
countries and the strong growth of Somatuline®. Over the period,
sales in the region represented 18.6% of total Group sales,
compared to 20.7% in 2018.
Sales in North America reached €361.0 million, up 21.0%
year-on-year driven by continued strong demand growth of
Somatuline®, Onivyde® and Dysport® and the contribution of the
launch of Cabometyx® in Canada. Over the period, sales in North
America represented 29.4% of total Group sales, compared to 26.1%
in 2018.
Sales in the Rest of the World reached €214.6 million, up
7.8% year-on-year, driven by Cabometyx® launches in some countries
and the good performance of Decapeptyl®, partly offset by delays in
local manufacturing in Algeria and lower Smecta® sales in China.
Over the period, sales in the Rest of the World represented 17.5%
of total Group sales, compared to 18.6% in 2018.
Comparison of Core consolidated
income statement for 2019 and 2018
Core financial measures are performance indicators.
Reconciliation between these indicators and IFRS aggregates is
presented in Appendix 4 “Bridges from IFRS consolidated net profit
to Core consolidated net profit”.
(in million euros)
30 June 2019
30 June 2018
% change
% of sales
% of sales
Sales
1,229.6
100%
1,064.5
100%
15.5%
Other revenues
63.3
5.1%
60.6
5.7%
4.4%
Revenue
1,292.9
105.1%
1,125.1
105.7%
14.9%
Cost of goods sold
(236.9)
-19.3%
(216.4)
-20.3%
9.5%
Selling expenses
(399.7)
-32.5%
(380.8)
-35.8%
5.0%
Research and development expenses
(176.3)
-14.3%
(141.6)
-13.3%
24.5%
General and administrative expenses
(90.4)
-7.4%
(78.3)
-7.4%
15.5%
Other core operating income
0.1
0.0%
14.6
1.4%
N.A. Other core operating expenses
(2.1)
-0.2%
(0.2)
0.0%
N.A.
Core Operating Income
387.5
31.5%
322.5
30.3%
20.1%
Net financing costs
(11.7)
-0.9%
(3.1)
-0.3%
277.2%
Other financial income and expense
(7.1)
-0.6%
(10.1)
-1.0%
-29.9%
Core income taxes
(87.1)
-7.1%
(72.8)
-6.8%
19.6%
Share of net profit (loss) from entities accounted for using the
equity method
1.4
0.1%
0.6
0.1%
114.0%
Core consolidated net profit
283.0
23.0%
237.1
22.3%
19.3%
- Attributable to shareholders of Ipsen S.A.
282.5
23.0%
237.3
22.3%
19.1%
- Attributable to non-controlling interests
0.5
0.0%
(0.2)
0.0%
N.A.
Core EPS fully
diluted - attributable to Ipsen S.A. shareholders (in € per
share)
3.38
2.86
18.5%
Reconciliation from Core
consolidated net profit to IFRS consolidated net profit
Core consolidated net profit
283.0
237.1
Amortization of intangible assets (excl software)
(30.0)
(24.2)
Other operating income or expenses
(13.8)
(4.0)
Restructuring
(6.6)
(11.6)
Impairment losses
-
-
Other
(12.0)
0.1
IFRS consolidated net profit
220.6
197.3
IFRS EPS fully diluted - attributable to Ipsen S.A.
shareholders (in € per share)
2.64
2.38
■ Sales
At the end of June 2019, the Group's consolidated Sales reached
€1,229.6 million, up 15.5% year-on-year and up 14.3% excluding the
impact of foreign exchange and change in consolidation scope.
■ Other
revenues
Other revenues for the half year 2019 totaled €63.3 million, up
4.4% versus €60.6 million at the end of June 2018. The evolution
was attributable to higher royalties received from partners, mainly
Galderma for Dysport® and Shire for Onivyde® and despite lower
royalties paid by Menarini for Adenuric®.
■ Cost of goods
sold
At the end of June 2019, Cost of goods sold amounted to €236.9
million, representing 19.3% of sales compared to €216.4 million, or
20.3% of sales at the end of June 2018. The favorable impact of
Specialty Care growth on the product mix continued to drive the
decrease of the cost of goods sold as a percentage of sales, partly
offset by the increase of royalties paid to partners.
■ Selling
expenses
For the first half of 2019, Selling expenses amounted to €399.7
million, up 5.0% versus the same period in 2018. The expenses
increase reflects the commercial efforts deployed to support the
Cabometyx® growth in Europe, the growth of Somatuline® in the
United States and in Europe as well Onivyde® in the United States.
Selling expenses represented 32.5% of sales, a decrease by more
than 3 points year-on-year.
■ Research and
development expenses
In the first half of 2019, Research and development expenses
totaled €176.3 million compared to €141.6 million at the end of
June 2018. The Group continued to invest in Research and
development in Oncology, especially for Cabometyx®, Onivyde® and
the systemic radiation therapy (SRT) programs, and in Neuroscience,
mainly for Dysport® lifecycle management and the next-generation
neurotoxin programs but also in Rare Diseases with the acquisition
of Clementia Pharmaceutical in April 2019.
■ General and
administrative expenses
At the end of June 2019, General and administrative expenses
amounted to €90.4 million, compared to €78.3 million at the end of
June 2018 with a stable ratio of sales year-on-year. The increase
resulted primarily from the reinforcement of the corporate
functions and some additional expenses from Clementia.
■ Other core
operating income and expenses
In the first half of 2019, Other core operating income and
expenses amounted to an expense of €2.0 million versus a profit of
€14.4 million in the first half of 2018, mainly due to the impact
of the currency hedging policy.
■ Core Operating
Income
Core Operating Income for the first half of 2019 reached €387.5
million, representing 31.5% of sales, compared to €322.5 million at
the end of June 2018, representing 30.3% of sales, a growth of
20.1% and an increase in profitability by 1.2 points.
■ Net financing
costs and Other financial income and expense
At the end of June 2019, the Group incurred Net financial
expenses of €18.8 million, versus €13.2 million in the first half
of 2018.
Net financing costs increased by €8.6 million driven by the
financing cost linked to the Clementia acquisition and to IFRS16 -
Lease standard implemented on 1 January 2019.
Other financial income and expense decreased by €3.0 million,
mainly related to dividends received from Group investments.
■ Core income
taxes
At the end of June 2019, Core income tax expense of €87.1
million resulted from a core effective tax rate of 23.6% on core
profit before tax in line with the rate at the end of June
2018.
■ Core consolidated
net profit
For the first half of 2019, Core consolidated net profit
increased by 19.3% to €283.0 million, with €282.5 million fully
attributable to Ipsen S.A. shareholders. This compares to Core
consolidated net profit of €237.1 million at end of June 2018, with
€237.3 million fully attributable to Ipsen S.A. shareholders.
■ Core Earning per
share
At the end of June 2019, Core EPS fully diluted came to €3.38,
up 18.5% versus €2.86 per share at the end of June 2018.
From Core financial measures to IFRS
reported figures
Reconciliations between IFRS June 2018 / June 2019 results and
the Core financial measures are presented in Appendix 4.
At the end of June 2019, the main reconciling items between Core
consolidated net income and IFRS consolidated net income were:
■ Amortization of
intangible assets (excluding software)
Amortization of intangible assets (excluding software) for the
first half of 2019 amounted to €41.0 million before tax, compared
to €33.1 million before tax at the end of June 2018, mainly due to
the higher amortization of intangible assets related to
Cabometyx®.
■ Other operating
income and expenses and Restructuring costs
Other non-core operating income and expenses for the first half
of 2019 amounted to an expense of €19.7 million before tax, mainly
related to Clementia integration costs and costs arising from the
Group’s transformation programs. Restructuring costs came to €9.0
million before tax, mainly impacted by the costs of the relocations
of the U.S. and German commercial affiliates.
At the end of June 2018, Other non-core operating expenses
totaled €3.7 million before tax and restructuring expenses amounted
to €16.0 million, consisting mainly of termination of R&D
studies and costs arising from the Group’s transformation programs
and the cost of the relocation of the U.S. commercial
affiliate.
■ Impairment
losses
In the first half of 2019, no impairment loss or gain was
recognized.
■ Other
At the end of June 2019, Other items amounted to a loss of €12.0
million versus a profit of €0.1 million at the end of June 2018. It
included a net loss of €16.1 million from the reassessment of the
contingent payments recognized in the context of the Onivyde®
intangible asset’s acquisition following the recent publication of
interim positive results related to the ongoing Onivyde® clinical
trial and the revision of the probability of success of the
indications and the expected dates of the triggering events. Other
items included also the impact of discontinued operations for a
profit of €4.1 million.
Therefore, IFRS reported indicators are:
■ Operating
income
At the end of June 2019, Operating income totaled €317.8 million
versus €269.7 million at the end of June 2018, with an Operating
margin of 25.8%, up 0.5 points compared to the first half of
2018.
■ Consolidated net
profit
Consolidated net profit was €220.6 million at the end of June
2019, an increase of 11.8% versus the end of June 2018 at €197.3
million.
■ Earning per
share
Fully diluted EPS was €2.64 at the end of June 2019 versus €2.38
at the end of June 2018.
Operating segments: Core Operating
Income by therapeutic area
Segment information is presented according to the Group's two
operating segments, Specialty Care and Consumer Healthcare.
All costs allocated to these two segments are presented in the
key performance indicators. Only corporate overhead costs and the
impact of the currency hedging policy are not allocated to the two
operating segments.
The Group uses Core operating income to measure its performance.
Core operating income is the indicator used by the Group to measure
operating performance and to allocate resources.
Sales, Revenue and Core Operating Income are presented by
therapeutic area for the 2019 and 2018 half years in the following
table:
(in million euros)
30 June 2019
30 June 2018
Change
%
Specialty Care Sales
1,100.0
920.2
179.8
19.5%
Revenue
1,137.2
950.5
186.7
19.6%
Core Operating Income
447.6
356.3
91.3
25.6%
% of sales
40.7%
38.7%
Consumer Healthcare Sales
129.6
144.3
(14.7)
-10.2%
Revenue
155.7
174.6
(18.9)
-10.8%
Core Operating Income
34.3
41.8
(7.5)
-17.9%
% of sales
26.5%
29.0%
Total Unallocated Core Operating Income
(94.5)
(75.6)
(18.9)
25.0%
Group total Sales
1,229.6
1,064.5
165.1
15.5%
Revenue
1,292.9
1,125.1
167.7
14.9%
Core Operating Income
387.5
322.5
65.0
20.1%
% of sales
31.5%
30.3%
At the end of June 2019, Specialty Care sales grew to
€1,100.0 million, up 19.5% as compared to the end of June 2018
(16.9% at constant exchange rates), reaching 89.5% of total
consolidated sales, versus 86.4% a year earlier. In the first half
of 2019, Core Operating Income for Specialty Care amounted
to €447.6 million, representing 40.7% of sales. This compares to
€356.3 million in the prior-year period, representing 38.7% of
sales. The improvement reflects the continued growth of Somatuline®
in the United States and Europe, the contribution of Cabometyx® and
Onivyde® as well as the performance of Dysport®, despite increased
commercial and Research & development investments including
those related to Clementia.
At the end of June 2019, Consumer Healthcare sales
reached €129.6 million, down 10.2% year-on-year or down -3.7% at
constant exchange rates and adjusted for the impact of the
consolidation under the equity method for joint arrangements
related to the Schwabe partnership. For the first half of 2019,
Core Operating Income for Consumer Healthcare amounted to
€34.3 million, representing 26.5% of sales, compared to 29.0% at
the end of June 2018, reflecting lower sales and commercial
investments to support the OTx strategy.
At the end of June 2019, Unallocated Core Operating
Income amounted to a negative €94.5 million, compared to a
negative €75.6 million in the year-earlier period. The evolution is
mainly attributable to the positive impact from the currency
hedging policy in 2018, as well as the reinforcement of the
corporate infrastructure.
Net cash flow and financing
The implementation of IFRS 16 - Leases standard has led to an
increase in financial liabilities of €188.2 million as of 1 January
2019 bringing the opening net debt to €(430.7) million.
The Group had a net debt increase of €1,068.8 million over the
first half of 2019 after Clementia acquisition, bringing closing
net debt to €1,499.5 million.
■ Analysis of the
consolidated net cash flow statement
(in million euros)
30 June 2019
30 June 2018
Opening net cash / (debt) (*)
(430.7)
(463.3)
Core Operating Income
387.5
322.5
Non-cash items
36.0
14.2
Change in operating working capital requirement
(102.0)
(50.2)
(Increases) decreases in other working capital requirement
(26.8)
(1.5)
Net capex (excluding milestones paid)
(96.3)
(47.8)
Dividends received from entities accounted for using the equity
method
0.9
0.9
Operating Cash Flow
199.2
238.2
Other non-core operating income and expenses and restructuring
costs (cash)
(33.9)
(0.6)
Financial income (cash)
(18.7)
(9.0)
Current income tax (P&L, excluding provisions for tax
contingencies)
(53.2)
(72.8)
Other operating cash flow
7.6
8.7
Free Cash Flow
101.0
164.5
Dividends paid
(83.5)
(83.2)
Net investments (business development and milestones)
(1,058.2)
(42.8)
Share buyback
(4.0)
(4.4)
FX on net indebtedness
3.7
(6.2)
Other (discontinued operations and financial instrument)
(27.8)
(2.5)
Shareholders return and external growth operations
(1,169.8)
(139.2)
CHANGE IN NET CASH / (DEBT)
(1,068.8)
25.3
Closing net cash / (debt)
(1,499.5)
(438.0)
(*) including €188.2 million impact due to IFSR16 – Leases
implementation on 1 January, 2019
■ Operating Cash
Flow
Operating Cash Flow in the first half of 2019 totaled €199.2
million, down €39.0 million (-16.4%) versus the first half of 2018,
driven by higher Core Operating Income (up €65.0 million) fully
compensated by higher working capital requirements and net capital
investments.
Non-cash items increased in the first half of 2019 by €36.0
million versus an increase of €14.2 million in the first half of
2018, impacted by €14.9 million, as a result of IFRS16 – Leases
standard implementation on 1 January, 2019.
Working capital requirement for operating activities increased
by €102.0 million for the first half of 2019, compared to an
increase of €50.2 million in the first half of 2018. The increase
in the first half of 2019 stemmed mainly from:
- a €11.4 million increase in inventories during the year, to
support business growth;
- a €88.8 million increase in trade receivables, in-line with the
phasing of sales and impacted by longer payment terms in some
countries;
- a €1.9 million decrease in trade payables as of 30 June 2019,
as compared to an increase of €4.8 million in the first half of
2018.
At the end of June 2019, other working capital requirement needs
increased by €26.8 million, mainly driven by variable compensation
payments in the first half of the year, compensated by an increase
in tax liabilities.
Net capital expenditure amounted to €96.3 million for the first
half of 2019, €6.0 million of which was due to IFRS16 - Leases
implementation, compared to €47.8 million in 2018, and mainly
included projects to support increased production capacity at
industrial sites in the United Kingdom, the United States and
France, as well as corporate investments in information technology
and digital projects.
■ Free Cash
Flow
Free Cash Flow for the first six months of 2019 came to €101.0
million, down €63.5 million versus 2018, mainly driven by lower
Operating Cash Flow combined with higher Other operating expenses,
restructuring costs and current income tax.
Other non-core operating income and expenses and restructuring
costs of €33.9 million mainly included the integration costs
related to the Clementia acquisition as well as cash out from the
U.S. and German affiliates relocation and from the Group’s
transformation programs.
The €18.7 million in financial expenses paid in the first half
of 2019, increased by €9.7 million compared to the end of June
2018, resulted from financing costs related to the Clementia
acquisition and hedging costs.
The change in current income tax stemmed mainly from the
decrease in Operating Income combined with higher financial
expenses.
■ Shareholders
return and external growth operations
In the first half of 2019, the dividend payout to Ipsen S.A.
shareholders amounted to €83.2 million.
Net investments in the first half of 2019 amounted to €1,058
million, including the acquisition of Clementia for €986 million
(including transaction fees) and additional milestones of €53
million paid to Exelixis and of €13 million to MD Anderson.
Net investments in the first half of 2018 amounted to €43
million, including additional milestones paid to Exelixis for €29
million, an equity investment in Arix Bioscience for €17 million,
the final payment of the acquisition of Akkadeas Pharma for €8
million, partly offset by the milestone received from Servier for
Onivyde® for €21 million.
Other included mainly the negative impact for €32.7 million on
net debt of the reassessment of the contingent payments recognized
in the context of the Onivyde® intangible assets following the
recent publication of positive results related to the on-going
developments on Onivyde® and the revision of the probabilities of
success of the indications and the expected occurrence dates of the
triggering events.
Reconciliation of cash and cash
equivalents and net cash
Following the implementation, on 1 January 2019, of IFRS16 –
Leases standard, the Group has recognized an increase of €151.2
million in Other financial liabilities non-current and €29.6
million in Financial liabilities on 30 June 2019.
(in million euros)
30 June 2019 30 June 2018
Current financial assets (derivative instruments on financial
operations)
0.5
0.4
Closing cash and cash equivalents
181.0
344.9
Bonds
(298.2)
(297.7)
Other financial liabilities (excluding derivative instruments) (**)
(430.8)
(83.2)
Non-current financial liabilities
(728.9)
(380.9)
Credit lines and bank loans
(796.2)
(4.1)
Financial liabilities (excluding derivative instruments) (**)
(155.8)
(398.3)
Current financial liabilities
(952.1)
(402.4)
Debt
(1,681.0)
(783.3)
Net cash / (debt) (*)
(1,499.5)
(438.0)
(*) Net cash / (debt): derivative instruments booked in
financial assets and related to financial operations, cash and cash
equivalents, less bank overdrafts, bank loans and other financial
liabilities and excluding financial derivative instruments on
commercial operations.
(**) Financial liabilities mainly exclude €14.9 million in
derivative instruments related to commercial operations at the end
of June 2019, compared with €15.5 million one year earlier.
■ Analysis of Group
cash
On 16 June 2016, Ipsen S.A. issued €300 million in unsecured,
seven-year public bonds. The bonds mature on 16 June 2023 with
coupon at an annual interest rate of 1.875%.
Ipsen S.A. program of emission of NEU CP - Negotiable EUropean
Commercial Paper of €600 million were drawn for €104 million on 30
June 2019.
Ipsen S.A. has refinanced its Revolving Credit Facility (RCF)
and existing bilateral bank facilities. The new Revolving Credit
Facility of €1,500 million signed on 24 May 2019 has a five-year
maturity and includes two one-year extension options. In this new
Revolving Credit Facility, the Group has to comply with a Net Debt
/ EBITDA covenant to remain below 3.5 time at each financial
closing and the facility includes specific indicators linked to CSR
(Corporate Social Responsibility) to be annually assessed.
The previous financing has been fully terminated on 28 June
2019.
On 30 June 2019, the facility was drawn by €795 million and the
Group was complying with its covenant ratio.
■ Impact of IFRS 16
standard
The application of IFRS 16 has led to an increase in the
tangible assets of €169.4 million and financial liabilities of
€188.2 million as of 1 January 2019.
The impact on the Operating Income reached a profit of €0.7
million as of 30 June 2019; the impact on the Consolidated Net
profit reached a loss of €2.3 million.
APPENDICES
■ Appendix 1 –
Consolidated income statement
(in million euros)
30 June 2019
30 June 2018
Sales
1,229.6
1,064.5
Other revenues
63.3
60.6
Revenue
1,292.9
1,125.1
Cost of goods sold
(236.9)
(216.4)
Selling expenses
(399.7)
(380.8)
Research and development expenses
(176.3)
(141.6)
General and administrative expenses
(90.4)
(78.3)
Other operating income
9.9
31.1
Other operating expenses
(72.6)
(53.5)
Restructuring costs
(9.0)
(16.0)
Impairment losses
-
-
Operating Income
317.8
269.7
Investment income
0.8
1.1
Financing costs
(12.5)
(4.2)
Net financing costs
(11.7)
(3.1)
Other financial income and expense
(23.2)
(10.1)
Income taxes
(67.9)
(59.8)
Share of net profit (loss) from entities accounted for using the
equity method
1.4
0.6
Net profit (loss) from continuing operations
216.4
197.3
Net profit (loss) from discontinued operations
4.1
0.1
Consolidated net profit (loss)
220.6
197.3
- Attributable to shareholders of Ipsen S.A.
220.1
197.5
- Attributable to non-controlling interests
0.5
(0.2)
Basic earnings per share, continuing operations (in
euros)
2.60
2.39
Diluted earnings per share, continuing operations (in euros)
2.59
2.38
Basic earnings per share, discontinued operations (in euros)
0.05
0.00
Diluted earnings per share, discontinued operations (in euros)
0.05
0.00
Basic earnings per share (in euros)
2.65
2.39
Diluted earnings per share (in euros)
2.64
2.38
■ Appendix 2 –
Consolidated balance sheet before allocation of net profit
(in million euros)
30 June 2019
31 December 2018
ASSETS Goodwill
622.5
395.6
Other intangible assets
1,949.7
1,011.9
Property, plant & equipment
664.7
474.5
Equity investments
67.3
65.2
Investments in companies accounted for using the equity method
15.2
15.5
Non-current financial assets
88.6
92.9
Deferred tax assets
168.5
131.9
Other non-current assets
6.7
4.4
Total non-current assets
3,583.2
2,191.8
Inventories
197.2
198.5
Trade receivables
549.5
463.0
Current tax assets
52.6
47.7
Current financial assets
53.3
5.5
Other current assets
155.6
126.4
Cash and cash equivalents
213.2
344.5
Total current assets
1,221.4
1,185.6
TOTAL ASSETS
4,804.6
3,377.4
EQUITY AND LIABILITIES
Share capital
83.8
83.8
Additional paid-in capital and consolidated reserves
1,670.9
1,366.0
Net profit (loss) for the period
220.1
389.5
Foreign exchange differences
6.5
1.8
Equity attributable to Ipsen S.A. shareholders
1,981.3
1,841.1
Equity attributable to non-controlling interests
2.0
2.3
Total shareholders' equity
1,983.3
1,843.4
Retirement benefit obligation
68.2
63.8
Non-current provisions
33.8
44.5
Other non-current financial liabilities
728.9
386.0
Deferred tax liabilities
273.4
19.7
Other non-current liabilities
47.1
61.0
Total non-current liabilities
1,151.5
574.9
Current provisions
9.6
21.1
Current financial liabilities
968.6
184.2
Trade payables
394.2
379.8
Current tax liabilities
19.2
11.4
Other current liabilities
246.0
329.0
Bank overdrafts
32.2
33.6
Total current liabilities
1,669.8
959.2
TOTAL EQUITY & LIABILITIES
4,804.6
3,377.4
■ Appendix 3 – Cash
flow statements
■ Appendix 3.1 –
Consolidated statement of cash flow
(in million euros)
30 June 2019
30 June 2018
Consolidated net profit (loss)
220.6
197.3
Share of profit (loss) from entities accounted for using the equity
method before impairment losses
3.2
0.3
Net profit (loss) before share from entities accounted for using
the equity method
223.8
197.6
Non-cash and non-operating items -
Depreciation, amortization, provisions
65.0
77.6
- Impairment losses included in operating income and net financial
income
-
-
- Change in fair value of financial derivatives
7.2
1.9
- Net gains or losses on disposals of non-current assets
0.8
0.6
- Foreign exchange differences
(1.8)
1.1
- Change in deferred taxes
14.7
(12.6)
- Share-based payment expense
7.8
5.7
- Other non-cash items
17.5
0.7
Cash flow from operating activities before changes in working
capital requirement
335.0
272.4
- (Increase) / decrease in inventories
(11.4)
(20.3)
- (Increase) / decrease in trade receivables
(88.8)
(34.7)
- Increase / (decrease) in trade payables
(1.9)
4.8
- Net change in income tax liability
5.4
45.6
- Net change in other operating assets and liabilities
(45.7)
(58.9)
Change in working capital requirement related to operating
activities
(142.2)
(63.4)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
192.7
209.0
Acquisition of property, plant & equipment
(76.0)
(35.2)
Acquisition of intangible assets
(23.2)
(67.5)
Proceeds from disposal of intangible assets and property, plant
& equipment
0.3
2.8
Acquisition of shares in non-consolidated companies
-
(22.1)
Payments to post-employment benefit plans
(0.6)
(0.8)
Impact of changes in the consolidation scope
(817.2)
(7.4)
Deposits paid
-
(0.5)
Change in working capital related to investment activities
(64.0)
20.6
Other cash flow related to investment activities
(10.1)
20.5
NET CASH PROVIDED (USED) BY INVESTMENT ACTIVITIES
(990.8)
(89.6)
Additional long-term borrowings
8.1
1.1
Repayment of long-term borrowings
(1.3)
(25.1)
Net change in short-term borrowings
743.9
119.1
Capital increase
0.3
2.4
Treasury shares
(3.4)
2.0
Dividends paid by Ipsen S.A.
(83.2)
(83.0)
Dividends paid by subsidiaries to non-controlling interests
(0.3)
(0.2)
Change in working capital related to financing activities
(1.5)
(3.0)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES
662.5
13.3
CHANGE IN CASH AND CASH EQUIVALENTS
(135.6)
132.7
Opening cash and cash equivalents
310.9
209.3
Impact of exchange rate fluctuations
5.6
2.9
Closing cash and cash equivalents
181.0
344.9
■ Appendix 3.2 –
Consolidated net cash flow statement
(in million euros)
30 June 2019
30 June 2018
Opening net cash / (debt)
(430.7)
(463.3)
CORE OPERATING
INCOME
387.5
322.5
Non-cash items
36.0
14.2
(Increase) /decrease in inventories
(11.4)
(20.3)
(Increase) / decrease in trade receivables
(88.8)
(34.7)
Increase / (decrease) in trade payables
(1.9)
4.8
Change in operating working capital requirement
(102.0)
(50.2)
Change in income tax liability
5.4
45.6
Change in other operating assets and liabilities (excluding
milestones received)
(32.3)
(47.1)
Other changes in working capital requirement
(26.8)
(1.5)
Acquisition of property, plant & equipment
(76.0)
(35.2)
Acquisition of intangible assets (excluding milestones paid)
(10.4)
(8.9)
Disposal of fixed assets
0.3
2.8
Change in working capital related to investment activities
(10.2)
(6.5)
Net capex (excluding milestones paid)
(96.3)
(47.8)
Dividends received from entities accounted for using the equity
method
0.9
0.90
Operating Cash Flow
199.2
238.2
Other non-core operating income and expenses and restructuring
costs (cash)
(33.9)
(0.6)
Financial income (cash)
(18.7)
(9.0)
Current income tax (P&L, excluding provisions for tax
contingencies)
(53.2)
(72.8)
Other operating cash flow
7.6
8.7
Free Cash Flow
101.0
164.5
Dividends paid (including payout to non-controlling
interests)
(83.5)
(83.2)
Acquisition of shares in non-consolidated companies (1)
(0.1)
(22.1)
Acquisition of other financial assets
(3.3)
-
Impact of changes in consolidation scope (2)
(984.7)
(8.0)
Milestones paid (3)
(70.0)
(31.6)
Milestones received (4)
-
20.6
Other Business Development operations
-
(1.8)
Net investments (business development and milestones)
(1,058.2)
(42.8)
Share buybacks
(4.0)
(4.4)
FX on net indebtedness
3.7
(6.2)
Other (discontinued operations and financial instrument)
(27.8)
(2.5)
Shareholders return and external growth operations
(1,169.8)
(139.2)
CHANGE IN NET CASH / (DEBT)
(1,068.8)
25.3
Closing net cash / (debt)
(1,499.5)
(438.0)
(1) Acquisition of shares in non-consolidated companies mainly
reflected investments in external innovation funds.
(2) Impact of change in consolidation scope notably reflects
Clementia acquisition.
(3) Milestones paid correspond to payments subject to the terms
and conditions set out in the Group's partnership agreements
including €53 million milestone paid to Exelixis and €13 million
paid to MD Anderson in the first half of 2019. The amounts paid
were recorded as an increase in intangible assets on the
consolidated balance sheet. The transactions were included in the
"Acquisition of intangible assets" line item in the consolidated
statement of cash flow (see Appendix 4.1).
(4) Milestones received are amounts collected by Ipsen from its
partners. No milestone was received at the end of June 2019 while
the Group received €21 million from Servier, in the first half of
2018, related to the Onivyde® acquisition closed in 2017. In the
consolidated balance sheet, the Servier milestones not yet received
are booked in “Current financial assets” and in “Non-current
financial assets”, depending on the forecasted cash-in timing.
Shire milestones received are included in the "Other cash flow
related to investment activities" line item in the consolidated
statement of cash flow (see Appendix 3.1).
■ Appendix 4 –
Bridges from IFRS consolidated net profit to Core consolidated net
profit
IFRS
CORE
(in million euros)
30 June 2019
Amortization of intangible
assets (excl software)
Other operating income or
expenses
Restructuring
Impairment losses
Other
30 June 2019
Sales
1,229.6
1,229.6
Other revenues
63.3
63.3
Revenue
1,292.9
-
-
-
-
-
1,292.9
Cost of goods sold
(236.9)
(236.9)
Selling expenses
(399.7)
(399.7)
Research and development expenses
(176.3)
(176.3)
General and administrative expenses
(90.4)
(90.4)
Other operating income
9.9
(9.8)
0.1
Other operating expenses
(72.6)
41.0
29.5
(2.1)
Restructuring costs
(9.0)
9.0
-
Impairment losses
-
-
-
Operating Income
317.8
41.0
19.7
9.0
-
-
387.5
Net financing costs
(11.7)
(11.7)
Other financial income and expense
(23.2)
16.1
(7.1)
Income taxes
(67.9)
(11.0)
(5.9)
(2.4)
-
-
(87.1)
Share of net profit (loss) from entities accounted for using the
equity method
1.4
1.4
Net profit (loss) from continuing operations
216.4
30.0
13.8
6.6
-
16.1
283.0
Net profit (loss) from discontinued operations
4.1
(4.1)
-
Consolidated net profit
220.6
30.0
13.8
6.6
-
12.0
283.0
- Attributable to shareholders of Ipsen S.A.
220.1
30.0
13.8
6.6
-
12.0
282.5
- Attributable to non-controlling interests
0.5
0.5
Earnings per share fully diluted - attributable to Ipsen
S.A. shareholders (in € per share)
2.64
0.36
0.17
0.08
-
0.14
3.38
The reconciliation items between Core consolidated net profit
and IFRS consolidated net profit are described in the paragraph
“From Core financial measures to IFRS reported figures”.
IFRS
CORE
(in million euros)
30 June 2018
Amortization of intangible
assets (excl software)
Other operating income or
expenses
Restructuring
Impairment losses
Other
30 June 2018
Sales
1,064.5
1,064.5
Other revenues
60.6
60.6
Revenue
1,125.1
-
-
-
-
-
1,125.1
Cost of goods sold
(216.4)
(216.4)
Selling expenses
(380.8)
(380.8)
Research and development expenses
(141.6)
(141.6)
General and administrative expenses
(78.3)
(78.3)
Other operating income
31.1
(16.5)
14.6
Other operating expenses
(53.5)
33.1
20.2
(0.2)
Restructuring costs
(16.0)
16.0
-
Impairment losses
-
-
Operating Income
269.7
33.1
3.7
16.0
-
-
322.5
Net financing costs
(3.1)
(3.1)
Other financial income and expense
(10.1)
(10.1)
Income taxes
(59.8)
(8.9)
0.3
(4.4)
(72.8)
Share of net profit (loss) from entities accounted for using the
equity method
0.6
0.6
Net profit (loss) from continuing operations
197.3
24.2
4.0
11.6
-
-
237.1
Net profit (loss) from discontinued operations
0.1
(0.1)
-
Consolidated net profit
197.3
24.2
4.0
11.6
-
(0.1)
237.1
- Attributable to shareholders of Ipsen S.A.
197.5
24.2
4.0
11.6
(0.1)
237.3
- Attributable to non-controlling interests
(0.2)
(0.2)
Earnings per share fully diluted - attributable to Ipsen
S.A. shareholders (in € per share)
2.38
0.29
0.05
0.14
(0.00)
2.86
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190724005878/en/
For further information
:
Media Christian Marcoux Senior Vice President,
Global Communications +33 (0)1 58 33 67 94
Christian.marcoux@ipsen.com
Fanny Allaire Director, Ipsen France Hub, Global
Communications +33 (0) 1 58 33 58 96 Fanny.allaire@ipsen.com
Financial Community Eugenia Litz Vice President,
Investor Relations +44 (0) 1753 627721 eugenia.litz@ipsen.com
Myriam Koutchinsky Investor Relations Manager +33 (0)1 58
33 51 04 myriam.koutchinsky@ipsen.com
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