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Investors UCB financials

Key financial performances

Revenue for 2017 increased to
€ 4.53 billion, by 9% at actual and 11% at constant exchange rates (CER), well achieving our target for 2017 of € 4.4 – 4.5 billion. Main drivers of the continued growth are UCB's core products, Cimzia® (immunology), Vimpat®, Keppra®, Briviact®, and Neupro® (neurology) with combined net sales of
€ 3.6 billion,  an increase of 13%.

Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.] measuring the underlying profitability grew to
€ 1.38 billion by 33% (+34% CER), driven by higher gross profit and a continuously improved operating expense ratio. This met our target of € 1.25 – 1.35 billion for 2017.

 

Core earnings per share Core earnings per share reached € 4.82 after € 3.19 – both based on 188 million shares outstanding. This exceeds with our 2017 target of € 4.10 – 4.50 per share.

To ease the comparison, the above chart was rebased on 188 millions shares, number of shares mentioned in the outlook.

Upcoming report

DateEvent details
28 February
2019
2018 full year results 07.00 Press release
14.00 Conference call /webcast

Outlook 2018

For 2018, UCB expects the continued growth of its core products driving company growth. UCB will also advance its development pipeline to offer potential new solutions for patients and complement existing pipeline assets with external opportunities.

2018 revenue reporting to reach approximately

€ 4.5-4.6 billion 

Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.] in the range of

€ 1.3-1.4 billion 

Core earnings per share are therefore expected in the range of

€ 4.30-4.70

based on an average of
188 million shares outstanding

Mid-term guidance

CVN combined peak sales 

≥ € 3.1 billion by 2020

Recurring EBITDA [Operating profit adjusted for amortisation, depreciation, impairment charges, restructuring expenses and other exceptional income and expenses.] / revenue ratio 

31% in 2021

Briviact® peak sales

≥ € 600 million in 2026

In 2010, UCB provided peak sales guidance for our core medicines, Cimzia®, Vimpat® and Neupro®(also known as CVN) of at least € 1.5 billion, € 1.2 billion and € 400 million respectively. Thus combined Cimzia®, Vimpat® and Neupro® peak sales of at least € 3.1 billion by 2020.

In 2017, net sales of our core products reached € 2.7 billion, on track to deliver this guidance.

In 2017, UCB delivered 9% revenue growth, i.e. € 4.53 billion, the recurring EBITDA amounted to € 1.38 billion, and we achieved - one year earlier than originally planned - our objective of a 30% recurring EBITDA / revenue margin.

In 2017, it reached 30.3%

While we will increase our investments in the short term to foster long term sustainability, we are committed to return to competitive profitability after this and increase our recurring EBITDA/revenue ratio to 31% in 2021. 

Briviact® available for people living with epilepsy during 2016, reached net sales of € 87 million.

Based on its strong performance, we increased our peak sales guidance for Briviact® in the year before patent expiry (2026) from € 450 to € 600million.

More financials...

Revenue for 2017 increased to € 4.53 billion, by 9% at actual and 11% at constant exchange rates (CER), well achieving our target for 2017 of € 4.4 – 4.5 billion.

Main drivers of the continued growth are UCB's core products, Cimzia® (immunology), Vimpat®, Keppra®, Briviact®, and Neupro® (neurology) with combined net sales of € 3.6 billion, an increase of 13%.

Operating expenses, encompassing marketing and selling expenses, research and development expenses, general and administrative expenses and other operating income/expenses, reached € 2 200 million (2%).

4% higher R&D expenses of € 1 057 million slightly reduces the R&D ratio thanks to phasing in the late-stage clinical development pipeline. The R&D ratio (as a % of revenue) for 2017 was 23%.

The net debt decreased by € 314 million from € 838 million as of end December 2016 to € 525 million as per end December 2017, and mainly relates to the underlying net profitability, offset by the dividend payment on the 2016 results and the acquisition of own shares.

At the end of 2016, the net debt / recurring EBITDA ratioreached 0.8, already well below the target of 1:1 which we had set by 2018. Our performance in 2017 confirms this level with  a ratio of 0.38.

Debt maturity profile (31 December 2017)

As from 2009 UCB successfully implemented a debt diversification and refinancing strategy. The company issued following bonds that are outstanding bonds per 31 December 2017:

In addition to these bonds, UCB has the availability of a 
€ 1 billion revolving credit facility, due 2023.

The evolution of cash flow generated by biopharmaceuticals activities is affected by the following:

  • Cash flow from operating activities amounted to € 927 million, of which € 896 million from continuing operations, compared to € 726 million in 2016 and stemming from underlying net profitability.
  • Cash flow from investing activities showed an outflow of
    € 228 million
    (continuing operations), compared to € 133 million inflow in 2016. It is related to upgrade / maintenance of plants, in-licensing deals, capitalized eligible develoment costs and venture funds.
  • Cash flow from financing activities had an outflow of
    € 402 million
    , which includes the dividend paid to UCB shareholders (€ 217 million), the acquisition of treasury shares (€ 105 million) and the repayment of short term borrowings (€ 26 million).