Q1 2023 results
Strong start to the year with stable Total Revenue and 15% growth excluding COVID-19 medicines[1]
Revenue and EPS summary
| Q1 2023 | ||||
| % Change | ||||
| $m | Actual | CER[2] | ||
| – Product Sales | 10,566 | (4) | 1 | |
| – Alliance Revenue[3] | 286 | 88 | 90 | |
| – Collaboration Revenue3 | 27 | (89) | (89) | |
| Total Revenue | 10,879 | (4) | – | |
| Total Revenue ex COVID-19 | 10,725 | 10 | 15 | |
| Reported[4] EPS [5] | $1.16 | >4x | >4x | |
| Core[6] EPS | $1.92 | 1 | 6 | |
Financial performance (Q1 2023 figures unless otherwise stated , growth numbers at CER)
‒ Total Revenue stable at $10,879m, despite a decline of $1,460m from COVID-19 medicines
‒ Excluding COVID-19 medicines, Total Revenue increased 15% and Product Sales increased 16%
‒ Total Revenue from Oncology medicines increased 19%, CVRM[7] 22%, R&I[8] 8%, and Rare Disease 14%
‒ Core Gross margin of 83%, up four percentage points, reflecting the decline in sales of lower margin COVID‑19 medicines, the cost of production in prior periods, and a mix shift to more speciality medicines
‒ Core Operating margin of 36%, up one percentage point, reflecting a $220m increase in Core Other operating income, which included a gain from the divestment of PulmicortFlexhaler rights in the US
‒ Core EPS increased 6% to $1.92
‒ Reiterating guidance for FY 2023 Total Revenue and Core EPS
Pascal Soriot, Chief Executive Officer, AstraZeneca, said:
” AstraZeneca had a strong start to 2023, with Total Revenue excluding COVID-19 medicines increasing 15%. Our performance in Emerging Markets was particularly strong and I am impressed by the growth and pace of innovation I see in China, which underscores the competitive advantage of our leading presence in this country.
Our pipeline momentum continued with positive Phase III results for a Lynparza-plus-Imfinzi combination in ovarian cancer, Imfinzi in lung cancer, and promising new data for Enhertu across a range of cancer types. Additionally, in the year to date we have started six new Phase III trials and are on track to initiate 30 over the course of 2023.
Finally, I would like to thank Leif Johansson for his outstanding leadership during his time as Chair of the Board, and his contribution to our return to growth strategy. Leif has been a tremendous partner to me, and I look forward to building the same strong partnership with our new Chair, Michel Demar é .”