Sanofi: Pre-quarterly Results Communication
Pre-quarterly Results Communication
- Sanofi (EURONEXT: SAN and NYSE: SNY) has compiled the following items for
consideration to assist in the financial modeling of the Group's Q2 2014
Q2 2013 Business EPS
When including the application of IFRIC 21, Sanofi's business EPS was €1.12 in
Foreign Currency Impact
The full year business EPS sensitivity to the U.S. Dollar and Japanese Yen are
o1% variation in €/$ corresponds to an impact of 0.5% on 2014 business EPS
o1% variation in €/¥ corresponds to an impact of 0.1% on 2014 business EPS
The main currency variations in Q2 2014 versus Q2 2013 and in H1 2014 versus
H1 2013 were:
€/. Q2 2013 Q2 2014 Var. H1 2013 H1 2014 Var.
U.S. Dollar 1,307 1,371 5% 1,313 1,370 4%
Japanese Yen 129,022 140,027 9% 125,466 140,396 12%
Canadian Dollar 1,337 1,495 12% 1,335 1,503 13%
Australian Dollar 1,322 1,470 11% 1,297 1,499 16%
British Pound 0,851 0,815 -4% 0,851 0,821 -4%
Chinese Yuan 8,039 8,545 6% 8,129 8,452 4%
Brazilian Real 2,703 3,059 13% 2,669 3,149 18%
Mexican Peso 16,313 17,821 9% 16,506 17,977 9%
Argentina Peso 6,843 11,045 61% 6,731 10,732 59%
Venezuelan Bolivar 8,214 8,631 5% 7,552 8,625 14%
Russian Rubble 41,378 47,963 16% 40,764 48,020 18%
Turkish Lira 2,406 2,898 20% 2,382 2,967 25%
South African Rand 12,416 14,463 16% 12,123 14,676 21%
Indian Rupee 73,093 82,000 12% 72,307 83,293 15%
As communicated on April 29, assuming Q1 2014 exchange rates for 2014, the
negative foreign currency impact on 2014 business EPS would have been
approximately 6 percentage points. Assuming June 2014 exchange rates remain
stable until end of 2014, the negative foreign currency impact on 2014
business EPS would be limited to approximately 5 percentage points.
Based on the evolution of foreign currency rates in Q2 2014, Sanofi estimates
that the negative foreign currency impact on Q2 2014 financial results should
be approximately 6 percentage points on sales and between 8 and 10 percentage
points on business EPS.
As previously communicated on April 29, Sanofi expects vaccines sales to be
relatively flat in Q2 2014 versus Q2 2013. In Q2 2013, strong sales of
Pentaxim^® (+48.3% to €87 million in Q2 2013) and Polio vaccines made a strong
base for comparison to Q2 2014.
Chattem launched Nasacort^® OTC nasal spray in February 2014.
Sales of products totaling €68 million in Emerging Markets that were
previously recorded in prescription pharmaceuticals in Q1 2013 were
transferred to Consumer Healthcare. Excluding this change of perimeter, sales
of CHC grew 9.4% in Q1 2014 reflecting the success of the Nasacort^® Rx-to-OTC
switch in the U.S. and strong performance in Emerging Markets (+13.7%).
In Q2 2013, sales of products in Emerging Markets which were previously
recorded in prescription pharmaceuticals and are now transferred to Consumer
Healthcare totaled €72 million.
Merial launched NexGard^TM, our next generation flea and tick product, in Q1
2014 in the U.S. and in several European countries during the first half of
2014. Sales of NexGard^TM were €23 million in Q1 2014.
Plavix^® in Japan
In Q1 2014, Plavix^® sales in Japan grew 48.5% to €215 million reflecting
strong underlying volume growth and favorable buying patterns in anticipation
of an increase in the consumption tax.
Renvela^® in the U.S.
Impax was granted a license to sell in the U.S a limited allotment of bottles
of an authorized generic version of Renvela^® tablets starting from April
2014. The specific allotment corresponds to 7-10% of the total sevelamer sales
in the U.S. in 2013.
An adjustment related to generic inventory levels in Brazil was recorded in Q2
2013. The net effect of this adjustment was to lower net sales by €122
million. An additional provision of €79 million was recorded for the write-off
of inventory and other related costs. As a result, in Q2 2013, the negative
impact from Brazil generics on the business EPS was
-€0.17 at 2013 rates (around -€230 million at Business net income level taking
into account the Q2 2013 effective tax rate of 21.1%)
Covis Capital Gain
In Q2 2013, Sanofi recorded a pre-tax capital gain of €166 million (booked
under "Other Current Operating Income") linked to the sales of the U.S. rights
of tail products to Covis Pharmaceuticals.
The effective tax rate for Q2 2013 was 21.1%. The effective tax rate for the
full year 2013 was 24.0%.
Sanofi estimates that its effective tax rate for 2014 will be approximately
As of April 4, 2014, Sanofi accounts for its 20% investment in Regeneron using
the Equity method. In 2014, Sanofi's business net income is expected to
benefit by approximately €45 million (three quarters) based on Regeneron
consensus estimate for US GAAP net income (€/$ rate of $1.38).
Number of Shares
The average number of shares in Q2 2014 was approximately 1,314.5 million
versus 1,325.7 million in Q2 2013.
In Q2 2014, Sanofi repurchased 8.47 million shares totaling €654 million. In
H1 2014, Sanofi repurchased 13.23 million shares totaling €1,009 million.
Investor Newsflows: All press releases issued during Q2 2014 are available on
Investor Relations Contact: email@example.com / +33 1 53 77 42 25
This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995, as amended. Forward-looking
statements are statements that are not historical facts. These statements
include projections and estimates and their underlying assumptions, statements
regarding plans, objectives, intentions and expectations with respect to
future financial results, events, operations, services, product development
and potential, and statements regarding future performance. Forward-looking
statements are generally identified by the words "expects", "anticipates",
"believes", "intends", "estimates", "plans" and similar expressions. Although
Sanofi's management believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned that
forward-looking information and statements are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of Sanofi, that could cause actual results and developments to differ
materially from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and uncertainties
include among other things, the uncertainties inherent in research and
development, future clinical data and analysis, including post marketing,
decisions by regulatory authorities, such as the FDA or the EMA, regarding
whether and when to approve any drug, device or biological application that
may be filed for any such product candidates as well as their decisions
regarding labelling and other matters that could affect the availability or
commercial potential of such product candidates, the absence of guarantee that
the product candidates if approved will be commercially successful, the future
approval and commercial success of therapeutic alternatives, the Group's
ability to benefit from external growth opportunities, trends in exchange
rates and prevailing interest rates, the impact of cost containment policies
and subsequent changes thereto, the average number of shares outstanding as
well as those discussed or identified in the public filings with the SEC and
the AMF made by Sanofi, including those listed under "Risk Factors" and
"Cautionary Statement Regarding Forward-Looking Statements" in Sanofi's annual
report on Form 20-F for the year ended December 31, 2013. Other than as
required by applicable law, Sanofi does not undertake any obligation to update
or revise any forward-looking information or statements.
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the content, accuracy and originality of the information contained therein.
Source: Sanofi via Globenewswire
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