AstraZeneca (AZN) Q4 2023 earnings summary

Executive summary

• FY 2023 Total Revenue increased 6% at CER to $45,811m; excluding COVID-19 medicines, revenue rose 15% and Product Sales increased 14%.

• Core EPS rose 15% at CER to $7.26, with double-digit growth across Oncology, CVRM, R&I and Rare Disease.

• The 2014 growth ambition of more than $45bn in Total Revenue was achieved; core operating margin reached 32%.

• Truqap, Wainua and Voydeya received first approvals since the prior results announcement.

Financial highlights

• FY 2023 Total Revenue was $45,811m, up 3% reported and 6% at CER; Product Sales were $43,789m, up 2% reported and 4% at CER.

• Reported operating profit was $8,193m, profit for the period $5,961m and reported EPS $3.84; core operating profit was $14,534m.

• FY Core EPS was $7.26, up 9% reported and 15% at CER; Product Sales gross margin was 81.1% reported and 81.7% core.

• Q4 Total Revenue was $12,024m, up 7% reported and 8% at CER; excluding COVID-19 medicines, it increased 16%.

• Q4 Core EPS was $1.45, up 5% reported and 7% at CER; core operating profit was $2,752m, up 6%.

Outlook and guidance

• FY 2024 Total Revenue and Core EPS are each expected to increase by a low double-digit to low-teens percentage at CER, based on 2023 average FX rates.

• January 2024 FX rates held through year-end would imply a low single-digit adverse impact to Total Revenue and Core EPS versus CER.

• FY 2024 Core Tax Rate is expected at 18–22%; Collaboration Revenue is expected to increase substantially and Other operating income to decrease substantially.