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).
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Sanofi SA published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 07:22:04 UTC.
Sanofi is the largest European pharmaceutical group. Net sales by family of products break down as follows:
- pharmaceutical products (70.6%): prescription drugs in the areas of specialty medicine (59.3% of net sales; for the treatment of multiple sclerosis, neurological diseases, inflammatory diseases, autoimmune diseases, rare diseases, cancers and rare hematological diseases) and general medicine (40.7%; mainly for the treatment of diabetes and cardiovascular diseases);
- human vaccines (17.4%): pediatric vaccines, vaccines for flu, meningitis, and polio, booster vaccines, and vaccines for travelers and endemic areas;
- consumer health products (12%).
At the end of 2023, the group had 54 production sites throughout the world.
Net sales are distributed geographically as follows: France (5.5%), Europe (18.6%), the United States (43%), North America (1.6%) and other (31.3%).