AstraZeneca (AZN) Q4 2024 earnings summary

Executive summary

• Achieved 21% total revenue growth and 19% core EPS growth year-over-year in FY 2024, with Q4 revenue up 25% and core EPS up 49%.

• Delivered strong growth across all therapy areas and geographies, with Oncology, CVRM, R&I, and Rare Disease all posting double-digit gains; Emerging Markets up 22% and China up 11%.

• Advanced pipeline with nine high-value pivotal Phase III trial readouts and eight new molecular entity approvals in 2024, progressing toward 2030 ambitions.

• Entering 2025 with multiple high-value launches and first Phase III data for seven NMEs, supporting a catalyst-rich year.

• Second interim dividend of $2.10 per share declared, total annual dividend for FY 2024 at $3.10 per share (+7%), with further increase planned for FY 2025.

Financial highlights

• FY 2024 total revenue reached $54.1bn (+21% CER); Q4 revenue was $14.9bn (+25% CER).

• FY 2024 reported operating profit was $10.0bn (+32% CER); core operating profit was $16.9bn (+22% CER).

• FY 2024 reported EPS was $4.54 (+29% CER); core EPS was $8.21 (+19% CER).

• Product sales gross margin was 80.0% reported and 81.2% core for FY 2024.

• Net cash inflow from operating activities increased by 15% to $11.9bn; net debt rose by $2.1bn to $24.6bn; net debt/EBITDA at 1.5x.

Outlook and guidance

• FY 2025 guidance: total revenue expected to increase by a high single-digit percentage, core EPS by a low double-digit percentage (both at CER).

• Dividend to be increased to $3.20 per share in FY 2025; CapEx to rise by ~50% for manufacturing and technology investments.

• Anticipates 60-70 basis points decline in gross margin due to IRA in the US, VBP in China, and product mix.

• FX expected to have a low single-digit adverse impact on revenue and mid-single-digit on core EPS.

• Operating margin targeted for mid-30s% by 2026.