Sanofi delivered close to double-digit Q4 2020 business EPS growth at CER
Q4 2020 sales growth of 4.2% and business EPS growth of 9.8% at CER
- Specialty Care sales grew 18.3%, driven by strong Dupixent® performance (+54.2% to €982 million).
- Vaccines up 14.6%, driven by record demand for differentiated influenza vaccines and continued growth of PPH.
- General Medicines declined 7.5%, reflecting lower U.S. Diabetes sales, COVID environment and portfolio streamlining.
- CHC down 3.0% due to decreased sales of Cough & Cold related portfolio in Europe partially offset by Digestive Health brands.
- Leveraged business EPS as the result of prioritization within R&D and continued execution on smart spending initiatives.
- Sales down 2.4% and business EPS flat on a reported basis, as a result of the overall adverse impact from foreign currency rates.
Full-year 2020 performance
- Sales increased by 3.3% to €36,041 million, driven by Dupixent® (€3,534 million, up 73,9%) and Vaccines.
- Business EPS of €5.86, up 3.9% on a reported basis and 9.2% at CER ahead of the guidance of 7% to 8%.
- In 2020, cost savings of €1,680 million were realized of which approximately 60% were reinvested.
- IFRS EPS of €9.82 (up 338.4%), reflecting capital gain from sales of Regeneron.
- Entering the sustainable finance landscape with two revolving credit facilities linked to selected sustainability KPIs.
- Board meeting held on February 4, proposes an annual dividend of €3.20.
2021 financial outlook
- Sanofi expects 2021 business EPS to grow high single-digit at CER, barring unforeseen major adverse events. Applying average January 2021 exchange rates, the currency impact on 2021 business EPS is estimated to be between -4.5% to -5.5%.
Sanofi Chief Executive Officer, Paul Hudson, commented:
“While last year was an extraordinarily challenging year for all, I am incredibly proud of the measurable progress we made within the backdrop of a global pandemic. Our teams across the world have relentlessly delivered on our strategy with a sharpened focus on operating and financial efficiencies.
We bolstered our R&D pipeline with the completion of the Synthorx and Principia acquisitions, met several regulatory milestones to bring our important medicines to patients, and have seen several proofs of concept which reassure us about the priorities we chose.
We continue to work in parallel on our two COVID-19 vaccine candidates, with clinical trials starting in the coming weeks. At the same time, we want to make a more immediate contribution to help save lives, which is why we have decided to provide manufacturing support to BioNTech and Pfizer.
The continuous uptake and potential of Dupixent® for patients, our contribution to population health with Vaccines, reinforced with the resiliency of our General Medicines and Consumer Healthcare portfolios are all solid foundations to build upon in 2021, helping us achieve our ambition of bringing breakthrough medicines and vaccines to people around the world.”
2020 fourth-quarter and full-year Sanofi sales
In the fourth quarter of 2020, Sanofi sales were €9,382 million, down 2.4% on a reported basis. Exchange rate movements had a negative effect of 6.6 percentage points, mainly driven by the decrease of the U.S. dollar, Brazilian real, Turkish lira, Russian ruble, Mexican and Argentine pesos. At CER, Sanofi sales increased by 4.2%.
Full-year 2020, Sanofi sales reached €36,041 million, down 0.2% on a reported basis. Exchange rate movements had a negative effect of 3.5 percentage points. At CER, Sanofi sales were up 3.3%.