Cars45 And Asharami Synergy Team Up To Increase Transparency And Customer Satisfaction In Auto Industry

Brand Spur
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Cars45 And Asharami Synergy Team Up To Increase Transparency And Customer Satisfaction In Auto Industry
Cars45 And Asharami Synergy Team Up To Increase Transparency And Customer Satisfaction In Auto Industry Brandspurng
L-R: Pankaj Bohra, Head, Retail and Technical Operations, Cars45; Oluwaseun Yussuf, Lubricant Sales and Marketing, Asharami Synergy and Olufemi Folarin, Head Franchise Dealership and Network Development, Cars45 during the partnership signing ceremony between Cars45 and Asharami Synergy in Lagos, recently | www.brandspurng.com
Cars45 And Asharami Synergy Team Up To Increase Transparency And Customer Satisfaction In Auto Industry Brandspurng1
L-R: Pankaj Bohra, Head, Retail and Technical Operations, Cars45; Yetunde Pearse, Commercial, Asharami Synergy; Olufemi Folarin, Head Franchise Dealership and Network Development, Cars45; Oluwaseun Yussuf, Lubricant Sales and Marketing, Asharami Synergy and Patricia Duru, Head, Lead Management & Marketplace, Cars45 at the partnership signing ceremony between Cars45 and Asharami Synergy in Lagos | www.brandspurng.com
Cars45 And Asharami Synergy Team Up To Increase Transparency And Customer Satisfaction In Auto Industry Brandspurng2
L-R: Segun Ogunkua, Lubricant Sales and Marketing, Asharami Synergy; Bemigho Awala, PR and Communications Manager, Cars45; Omolola Jaiyesimi, Brand and Communications, Asharami Synergy; Beatrice Teluwo, Lubricant Sales and Marketing, Asharami Synergy and Oluwashola Adekoya, Group Head, Marketing and Communications at the partnership signing ceremony between Cars45 and Asharami Synergy in Lagos | www.brandspurng.com

Ecobank Nigeria set to launch USD300M senior notes on International Debt Market

Esan Bolaji
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Ecobank Nigeria set to launch USD300M senior notes on International Debt Market

February 5th 2021 – Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, the leading Pan-African banking group with banking operations in 34 countries hereby notifies the investing public that Ecobank Nigeria Limited, a key subsidiary of Ecobank Transnational Incorporated is seeking to raise capital from the international debt capital market through the issuance of US$300 million senior notes, pursuant to the United States Securities and Exchange Commission Rule 144A and Regulation S.

Ecobank Bags Best Retail Bank In Nigeria 2020 at Asian Banker Awards Brandspurng

The proceeds of the Eurobond will provide medium-term funding and help to enhance the capacity of the Bank to support international trade and service in Africa Further, the Notes, which will be issued through a Dutch special purposes funding vehicle, will be listed on the
London Stock Exchange.

In view of the foregoing, ETI is pleased to notify the Nigerian Stock Exchange and the investing public of the proposed launch of the Notes by the Bank. The Bank intends to list the Notes on the London Stock Exchange, with the expectation that the Notes will be traded on its regulated market.

The Central Bank of Nigeria has confirmed that it has no objection to the Transaction.

It should be noted that the Transaction is subject to prevailing market conditions and the conclusion of the necessary Transaction documentation.

Western Digital’s New Apex Legends Memory Card for Nintendo Switch Enables More Players to Battle for Glory, Fame and Fortune

Esan Bolaji
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Western Digital’s New Apex Legends Memory Card for Nintendo Switch Enables More Players to Battle for Glory, Fame and Fortune

Lagos, Nigeria: February 2021 – Western Digital has teamed up with Respawn Entertainment to create an Apex Legends™-themed memory card for the Nintendo Switch™, offering gamers and contenders across the Outlands expanded storage solutions just in time for the universally acclaimed battle royale game to drop into the Nintendo eShop next month.

Western Digital’s New Apex Legends Memory Card for Nintendo Switch Enables More Players to Battle for Glory, Fame and Fortune

Featuring the distinctive Apex Legends insignia, players can squad up and the battle for glory with the microSDXC card which offers up to 128GB* of expanded storage.

Whether it’s existing fans who want to ready themselves to jump into the action, or new players looking to compete in the Apex Games for the first time, this microSDXC card ensures any gamer is equipped with the additional space they need to take on more adventures or challenges on their Nintendo Switch system. 

“With a massive and growing fan base, Apex Legends provides an immersive squad-based battle royale experience unlike any other,” said Susan Park, Vice President, Client Solutions at Western Digital. 

Western Digital’s New Apex Legends Memory Card for Nintendo Switch Enables More Players to Battle for Glory, Fame and Fortune
Front and back hi-res and lo-res packaging

“We’re excited to help bring the quality and reliability of our microSDXC products to this passionate community, offering unique storage solutions to help them play at their best.” 

“As we continue to expand the Apex Legends universe, we’re committed to ensuring that our fans experience top-notch quality and fun, no matter what platform they’re using,” said Arturo Castro, Vice President, Global Brand Management at Electronic Arts.

“As leaders in the storage space, working with Western Digital was critical to ensuring our fans are prepared to download and take on whatever adventures may come next in the Outlands.” 

Availability

The Apex Legends 128GB* SanDisk microSDXC card for Nintendo Switch retails for  £29.99 MSRP and is now available for purchase at select Western Digital retailers, e-tailers and on the Western Digital online store.

Livestream Countdown

In celebration of Season 8, and in anticipation of the full game’s release for Nintendo Switch, Western Digital will be hosting weekly live streams with giveaways leading up to the game’s launch on March 9. For details on the full streaming schedule, visit Facebook.com/SanDisk or tune in directly at https://www.twitch.tv/WD_BLACK.

N169 Million: Nigerian Breweries appeals haulage fees judgment in Ondo State

Esan Bolaji
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N169 Million: Nigerian Breweries appeals haulage fees judgment in Ondo State

The attention of Nigerian Breweries Plc has been drawn to recent publications in the media on the above subject. The Company hereby confirms that an Ondo State High Court sitting in Akure on the 27th of January, 2021 gave a judgment against the Company and in favour of the Ondo State Government in respect of haulage fees assessed at N169 million.

In response to the court ruling, the Company has filed a Notice of Appeal against the said judgment as well as an application for stay of execution of the judgment pending the appeal.

Nigerian Breweries Plc: Strong Earnings Recovery in Q3’2020

The Company does not engage in haulage business and does not own or operate any haulage truck whether in Ondo State or anywhere else. Haulage fees are by law, paid by companies in the haulage business.

Independent third parties who are in the haulage business are wholly responsible for moving the Company’s products across the country and have always been responsible for the payment of haulage fees to the respective authorities.

Although the Government had initially taken a self-help approach to sealing the Depot on the 28th of January, 2021, the Government subsequently re-opened the Depot on the 2nd of February 2021 following petitions by the Company’s lawyers on the unorthodox steps initially taken to seal the Depot.

The Company is committed to seeing the matter through to its logical conclusion by the courts with a view to preserving its legal rights.

The Ondo State Government is our highly regarded stakeholder and partner in progress.

As a responsible and law-abiding corporate citizen, the Company takes the issue of compliance seriously and will continue to honour all legitimate statutory payment obligations applicable to it.

Bolt Advocates Customer Service Excellence for Drivers in new Mega Bonus Challenge

Esan Bolaji
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Bolt Advocates Customer Service Excellence for Drivers in new Mega Bonus Challenge
Lagos, Nigeria – Bolt, the fastest-growing ride-hailing platform in Africa, has today rewarded three drivers in its Bolt Mega Bonus Challenge. This activity which concluded in January 2021 is in line with Bolt’s commitment to encourage drivers to maintain customer service excellence and professionalism to riders. 

The Bolt Mega Bonus Challenge which recorded wide participation from all drivers across 4 cities saw Odey Xavier Ayaga (from Abuja), Adewale Sunday Ayaga (from Lagos) and Mathias K Bitrus (from Abuja) emerge as winners with 2 receiving brand new Suzuki Swift cars with over 50 other drivers receiving gift hampers, N800,000 worth of fuel vouchers and household appliances.

Bolt Advocates Customer Service Excellence for Drivers in new Mega Bonus Challenge Brandspurng
L-R: Oonyinyechi Madubuko, Lagos Operations manager, Bolt Nigeria; Adewale Sunday Adetayo, 2nd place winner, Bolt win a car campaign; Femi Akin- Laguda, Country Manager, Bolt Nigeria; Odey Xavier Ayaga, winner, Bolt win a car campaign and Umar Olanrewaju, Abuja Operations manager, Bolt Nigeria at the presentation ceremony in Lagos recently | www.brandspurng.com

To win, drivers accumulated points by performing important Bolt driver activities.  

In a ceremony which held at Bolt’s Office in Lagos, the grand prize winners expressed their excitement as they shared individual stories of how diligent and professionally they have worked to emerge top winners and their plans to maximise the new cars. 

Operations Manager for Bolt Nigeria, Onyinyechi Madubuko, congratulated the winners on their achievements and commended all the drivers who had participated in the challenge.

“At Bolt Nigeria, we are committed to providing quality riding experiences and exceptional customer service to all our riders. Through the Bolt Mega Bonus Challenge, we recognise our Bolt drivers in the country for their hard work and efforts during the business year. We are glad to announce that the competition has allowed us to build a community where drivers can drive, thrive and deliver excellent service to riders” she added.

Since its inception in Nigeria, Bolt has continuously shown a commitment to excellent customer satisfaction, whilst prioritising drivers’ satisfaction. 

Bolt is the leading European mobility platform that is focused on making urban travel more affordable, convenient, and responsible. Bolt has more than 30 million users in over 35 countries across Europe and Africa. Its services range from ride-hailing to micro-mobility with e-scooters and electric bikes to food and package delivery.

Flour Mills of Nigeria Delivers Another Quarter to Remember

Meristem
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Flour Mills of Nigeria Delivers Another Quarter to Remember

Another Stellar Performance Pushes Topline by +31.14% in 9M:2021

The 9M:2021 financial scorecard of Flour Mills of Nigeria Plc. (FLOURMILL) showed significant year on year improvements, with revenue (NGN555.34bn) and bottom-line (NGN15.59bn) up 31.14% and 90.94% respectively.

The company replicated the feat recorded in the preceding quarter, generating over NGN200bn in revenues in Q3:2021 standalone (October – December 2020) – eclipsing the previous year’s NGN152.72bn.

Flour Mills of Nigeria Continues to Donate Relief Food Items Across the Nation brandspurng

The strong performance across all the Group’s business segments (Food: +31.21%, Sugar: +33.41%, Agro-Allied: +29.86% and Support services: +25.63%) have been supported by Management’s strategic focus on driving Business-to-Customer (B2C) sales; investments in Route-to-market (RTM) with the acquisition of new trucks and establishment of distribution centres, introduction of new products at attractive price points and benefits accruing from the erstwhile closure of the country’s borders.

Our outlook for sales in Q4 is broadly positive (coloured by the essential nature of the firm’s products, its pricing strategy, and ongoing investments in its RTM and distribution channels), although we identify the reopening of the land borders and the impact of rising inflation on consumer purchasing power as downside risks.

Hence, we now forecast a top-line growth of 25.60% to NGN720.67bn by year-end 2021.

Sales Growth Pass through to Bottom-Line

FLOURMILLs’ major cost item – raw materials shot up by 31.67% YoY to NGN425.82bn (reflecting the impact of higher sales volume sales and inflationary pressure), triggering a 28.55% increase in the overall cost of sales.

The impact was, however, moderated by the growth in top-line, which resulted in a slight improvement in cost-to-sales ratio to 86.95% (vs. 88.71% in 9M:2020).

Similarly, topline growth trickled down to EBIT and bottom-line, notwithstanding the increase in operating expenses (+6.08% to NGN25.10bn), net operating loss of NGN12.58bn (due mainly to FX losses of NGN14.56bn) and higher finance charges. Operating profit at NGN35.21bn was 42.66% higher than in the corresponding 2020 period.

At the end of the period, finance costs were up by 13.80% to NGN14.93bn, accompanied by an increase in interest-bearing debt to NGN147.40bn due to inflows from its earlier commercial paper issuance.

In the end, PBT and PAT settled at NGN23.61bn and NGN15.58bn – a whopping 92.06% and 90.94% YoY growth. Expectedly, profitability metrics fared better with net margin, ROE and ROA climbing to 2.81%, 10.02% and 3.37% (from 1.93%, 5.39% and 2.03% respectively).

For 2021FY, after adjusting for a better than expected Q3, we have revised our earlier PAT forecast to NGN19.18bn.

Update on Bond Issuance and Use of Proceeds

The company, as part of its NGN70bn bond programme, tapped the debt market in December, issuing NGN29.89bn in bonds – tranche A (5 years at 5.50%) and tranche B (7 years at 6.25%).

The use of the proceeds would be to repay existing debt and finance its working capital needs.

With a healthy cash balance of NGN81.18bn and slightly better liquidity ratios (current and quick ratios improved to 1.45x and 0.60x from 1.28x and 0.35x respectively as at 2020FY), the company is liquid enough to cover its short-term obligations.

Outlook and Recommendation

Premised on our 2021FY expected EPS of NGN4.68 and revised target PE of 6.8x, we arrived at a Target Price of NGN31.82. This represents a 3.58% downside when compared to its closing price as of 2nd February 2021. Hence, we place a HOLD recommendation on the ticker.

Top Five Oil Giants’ Market Value Falls to $680 Bn, Lower than Tesla’s $752 Bn

Esan Bolaji
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0
Top Five Oil Giants’ Market Value Falls to $680 Bn, Lower than Tesla’s $752 Bn

Top Five Oil Giants’ Market Value Falls to $680 Bn, Lower than Tesla’s $752 Bn

There is a delicate blend of optimism and caution as oil supermajors sail into earnings season, following one of the worst years for the industry.

According to the research data analyzed and published by Sijoitusrahastot, the energy sector was the worst performer on the S&P 500 in 2020, plummeting 37% year-over-year (YoY). Comparatively, the index had an overall gain of close to 15% in the same period.

Performance of the 11 Sectors in S&P 500 Market in 2020

Top Five Oil Giants’ Market Value Falls to $680 Bn, Lower than Tesla’s $752 Bn
Source: Marketwatch

The energy sector’s plunge was attributed to an all-out war in oil price between Russia and Saudi Arabia. As a result, the price of an oil barrel plunged below zero for the first time in history in April 2020. Lockdowns and travel restrictions simply served to exacerbate the sector’s plight. Not surprisingly, the effects were reflected in the performance of top players in the industry.

In 2020, ExxonMobil, the largest US energy firm was one of the stock market’s biggest losers. Its shares plunged by a massive 40% during the year according to S&P Global. The fall wiped approximately $120 billion from the company’s market value. At its peak in 2007, Exxon had a market capitalization of $525 billion. As of February 2, 2021, it was down to $189.59 billion.

Energy Stocks Soar And Oil Prices Climb

The situation was no different for other oil giants. Chevron lost $68 billion in market value during the year and had a market cap of $164.01 billion as of February 2, 2021. At the time, BP had a market value of $75.25 billion, Royal Dutch Shell $139.67 billion and Total SE $111.44 billion.

Total Market Value of the Top Five Oil Giants in 2020

Top Five Oil Giants’ Market Value Falls to $680 Bn, Lower than Tesla’s $752 Bn
Source: MacroTrends

In total, the five oil giants had a collective market value of around $680 billion. Their cumulative value was close to $70 billion lower than Tesla’s $752.19.

Exxon Reports First Annual Loss in 40 Years

The challenging market conditions in 2020 are well reflected in the fourth-quarter earnings reports of ExxonMobil and Chevron.

Exxon reported its fourth consecutive quarter of losses, posting a $20.1 billion loss for Q4 2020. Revenue for the period totalled $46.54 billion, lower than The Street’s estimate of $48.76 billion.

Earnings per share (EPS) outperformed analyst expectations, at 3 cents against an expected 1 cent according to Refinitiv. Comparatively, the company had an EPS of 41 cents in Q4 2019 on $67.17 billion in revenue. Its Q4 2020 performance was, however, an improvement compared to Q3 2020, when it had an EPS loss of 18 cents and revenue totaling $46.2 billion.

For the full year 2020, Exxon had a loss of $22.4 billion compared to its $14.3 billion profile in 2019. It was the company’s first annual loss in at least four decades.

 

Similarly, Chevron reported a loss of $11 million in Q4 2020, equivalent to 1 cent per share. Comparatively, in Q4 2019, it had a profit of $2.8 billion and EPS of $1.49.

As a result of oil and gas price improvement and an output increase of 6% from its $4.2 billion purchase of Noble Energy, Chevron’s oil and gas earnings were $501 million. In the previous year period, it had a loss of $6.7 billion from the same segment. However, its refining and chemical business posted a $338 million loss compared to a $672 million profit in Q4 2019. Fuel sales tanked 10.55%.

Overall, Chevron reported a loss of $5.54 billion in 2020 compared to a $2.92 billion profit in 2019.

Exxon and Chevron had merger talks in 2020 according to the Wall Street Journal. If the move materialized, it would be among the largest corporate mergers in history. The tie-up would create a $350 billion behemoth based on the two giants’ current valuations.

BP Posts $115 Million Net Profit in Q4 2020, $5.7 Billion Net Loss Full-Year

BP posted its first annual loss in a decade, amounting to $5.7 billion compared to a $10 billion net profit in 2019. The expected full-year loss in 2020 according to Refinitiv was $4.8 billion.

For the fourth quarter of 2020, the UK-based oil and gas major reported a $115 million net profit. The figure underperformed analysts’ expectations of $285.5 million.

On the bright side though, the company’s net debt reduced by $1.4 billion during Q4 and $6.5 billion during the year, reaching $39 billion. It is on track to bring down the net debt to $35 billion.

Looking at the stock performance of these oil supermajors shows a measure of optimism from investors. For ExxonMobil, its share price was up 9% as of February 2, 2021 but down by 27% over the trailing-year period.

Chevron share price had gained by 2% at the time, despite being 19% down over the previous year. After tanking nearly 46% in 2020, BP share price had risen by 6% YTD at the time.

Airlines operated 97% fewer flights in 2020 than in 2019 and passenger traffic growth fell 67%

Esan Bolaji
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Airlines operated 97% fewer flights in 2020 than in 2019 and passenger traffic growth fell 67%

The year 2020 was one of the most difficult for the aviation sector. Passenger traffic during the year fell 67% year-on-year.

According to research data analyzed and published by Buy Stocks, between January 1 and December 20, 2020, airlines operated a total of 16.8 million flights. During a similar period in 2019, 33.2 million flights were recorded, 97% more than the 2020 figure.

Total Airline Flights in 2019 and 2020

Airlines operated 97% fewer flights in 2020 than in 2019 and passenger traffic growth fell 67% Brandspurng
Source: Cirium

The sector registered 2.9 trillion kilometres of passengers worldwide, up from 8.7 trillion in 2019. As a result of travel restrictions, airline passenger traffic fell to levels not seen since 1999, eliminating 21 years of growth in the sector. While domestic flights fell 40% compared to 2019, international flights sank 68%.

According to the Cirium report, North America and Asia-Pacific began to recover earlier than other regions. In the list of the 10 busiest airports in the world, the US had seven appearances and China three.

Average transport fare for bus journey rose by 4.03 per cent in October – NBS

The airport with the most traffic was Atlanta and had 250,800 flights during the year. Chicago was second with 228,000 flights and Dallas third with 227,200 flights. In China, the airport with the most traffic was Guangzhou, with 158,700 flights. It was ranked sixth on the list.

Net losses in the aviation sector fell from $ 118.5 billion in 2020 to $ 38.7 billion in 2021

According to IATA, 2020 was the worst financial year for the aviation sector in its history. The total income of the sector for that year was 328,000 million dollars, for the 838,000 million that there was in 2019.

The number of passengers fell to 1.8 billion during the year, a level not seen since 2003. Compared with 4.5 billion in 2019, the figure was 61% lower year-on-year.

While demand plunged 66%, the load factor plummeted to 65.5%, the lowest level since 1993. Low demand, in turn, resulted in a massive decline in passenger revenue, from $ 612 billion in 2019 to $ 191 billion.

In order to stay afloat, airlines cut their spending by 45.8%, from $ 795 billion in 2019 to $ 430 billion in 2020. Unfortunately, airline revenues fell 60.9%. As a consequence, it was estimated that companies lost about $ 66 for each passenger carried in 2020, resulting in a net loss of 118.5 billion.

IATA projections indicate that the destruction of cash will continue until the end of 2021, estimating a loss of 38.7 billion for the year. Overall revenue is expected to rise to $ 459 billion in 2021, $ 131 billion more than in 2020. However, that figure is still 45% lower than in 2019.

Passenger numbers are projected to rise to 2.8 billion, a considerable improvement, but still 1.7 billion less than in 2019. The passenger load factor will increase to 72.7%, well below the level of 82, 5% prior to the pandemic. At the earliest, IATA estimates that passenger numbers will return to pre-pandemic levels by 2024.

Cargo operations had less of an impact than passenger business. Despite a 45% decline in capacity, freight revenue rose from $ 102.4 billion in 2019 to $ 117.7 billion in 2020. Although the increase could not offset the drop in revenue from passengers It did help airlines maintain their complicated international business. The air transport business is expected to recover to its pre-pandemic levels in 2021.

Asia-Pacific airlines will suffer a loss of 7.5 billion in 2021

While the global market for air travel is still far from full recovery, regional discrepancies are worth mentioning.

Asia-Pacific airlines are expected to lead the global recovery process. Flight volume in Asia-Pacific fell by almost 45% year-on-year in 2020. It remained the world’s largest market and even gained slightly in other regions.

By the end of the third quarter of 2020, domestic air travel in China and Russia had fully recovered. According to IATA data, China only lost 2.8% in the year-on-year rate of kilometres flown by passengers in domestic markets, while in Russia they were up 2.7% over the previous year. Compared to 2019, there was a 65% reduction in the US.

By the end of 2020, the West Asia and Pacific region had a remarkable recovery, achieving 73% of pre-pandemic flights. At that time, North America carried 55% of pre-crisis flights and Europe 39%.

Overall, Asia-Pacific airlines lost roughly $ 31.7 billion in 2020, while North America lost $ 45.8 billion. IATA expects a loss of 7.5 billion for Asia-Pacific airlines in 2021, the lowest loss among the top three regions in the global aviation sector.

On the other hand, North American airlines are expected to lose about 11 billion and European ones, 11.9 billion. However, North America is expected to make a strong recovery thanks to the size of its domestic market and the financial strength of its airlines before the pandemic.

Nigerian Equities Extends Bearish Run…Investors Lost N112.05bn

PFI Capital
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Nigerian Equities Extends Bearish Run…Investors Lost N112.05bn

The local equities market continues on a negative trend amid profit-taking and earnings releases. The benchmark All Share Index (ASI) went down by 51bps  to close at 41,785.80 with market capitalization losing N112.05bn to settle at  N21.86tn. Consequently, the year-to-date performance compressed to 3.76%.

Significant bearish sentiments were witnessed across sectors as 4 out of the 5 indices closing negative. Notably, the insurance and banking indices advanced contracted by 1.11% and 0.31% due to negative sentiments in LINKASSURE (-9.59%) and ZENITH BANK(-0.74%).

Nigerian Equities Extends Bearish Run...Investors Lost N112.05bn

Similarly, consumer goods and industrial indices went down by 0.13% and 1.19% on the back of losses recorded in CHAMPION(-9.73%) and DANGCEM(-2.54%). Oil & gas index, however, went up 0.32% as a result of gains recorded in JAPAULGOLD(+9.84%)

Investors’ sentiment was also negative as only 22 stocks advanced while 25 stocks declined to indicate a 0.88x market breadth.  Market activity was positive both the volume and value of transaction advanced by 24.68% and 50.29% respectively.

Fixed Income Market

The bond market traded on a positive note with yield compressing across short and long-dated instruments. The yield on the FGN-MAR-2024 and JUL-2030 both declined by 1bps to 6.11% and 8.87% respectively.

Treasury bills market traded on a  quiet note as yield remain stable across different tenors. The yield on the 92-day and 182-day remained stable at 0.43% and 1.00% while that of 364-day maturities compressed to 2.04.

Market Snapshot

  • Nigerian Equities Extends Bearish Run…Investors Lost N112.05bn Today
  • The bond market traded on a quiet note as yield compressed marginally across tenors
  • U.S. Stocks Climb Amid Small-Cap Rally
  • Oil Resumes Climb With Focus on Saudi Commitment to Curb Supply
  • Naira was stable against the USD at the parallel market to close at N480/$

Sanofi delivered close to double-digit Q4 2020 business EPS growth at CER

Esan Bolaji
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0
Sanofi delivered close to double-digit Q4 2020 business EPS growth at CER

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.
Sanofi offers to acquire Kiadis, a clinical-stage company developing cell-based immunotherapy products
Sanofi seen in Cambridge, Massachusetts, on Oct. 5, 2018. (Ruby Wallau for STAT)

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%.

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