Earnings release
Page 1
● Sales growth accelerated - Full - year guidance raised Q2 2021 sales grew double digit to € 8.7 billion ( up 12.4 % at CER ) mainly driven by Dupixent® and Vaccines Specialty Care sales increased 22.0 % , due to strong Dupixent® ( + 56.6 % ) and new oncology Vaccines up 16.2 % , driven by meningitis and boosters franchise recovery ; accelerating the mRNA pipeline General Medicines sales increased 4.2 % supported by core assets ( up 11.8 % ) including COVID related demand for Lovenox® CHC increased 11.9 % due to growth of Digestive Wellness category largely offsetting low demand for cough and cold brands Q2 2021 business EPS ( ¹ ) growth of 16.4 % at CER driven by sales performance and efficiencies • Business EPS ( 1 ) was € 1.38 , up 7.8 % on a reported basis In H1 2021 , cost savings of € 450 million were realized of which the vast majority was reinvested • IFRS EPS was € 0.97 ( down 84.0 % ) , reflecting capital gain from sales of Regeneron shares in Q2 2020 Progress on implementation of the Corporate Social Responsibility strategy • Increased representation of women in senior leadership positions to 40 % ( 36 % in Q2 2019 ) with an ambition of 50 % by 2025 • A € 3 million Planet Mobilization fund launched to support employee projects to improve our environmental impact Key milestone and regulatory achievements on R & D transformation Global Phase 3 study of adjuvanted recombinant - protein COVID - 19 vaccine candidate ( collaboration with GSK ) started All pivotal studies of nirsevimab read out successfully , global submissions to start in H1 2022 , one year earlier than expected Formation of Vaccines mRNA center - of - excellence ; flu vaccine candidate entered phase 1 Additional regulatory approvals for Libtayo® and Sarclisa® in Europe • Three acquisitions completed : Tidal Therapeutics , Kiadis and Kymab ● Full - year 2021 business EPS guidance revised upward Sanofi now expects 2021 business EPS ( ¹ ) to grow around 12 % at CER ( 2 ) , barring unforeseen major adverse events . Applying average July 2021 exchange rates , the currency impact on 2021 business EPS is estimated to be between -4 % to -5 % Sanofi Chief Executive Officer , Paul Hudson , commented : IFRS net sales reported IFRS net income reported IFRS EPS reported Free cash flow ( 3 ) " The Sanofi business momentum has accelerated in the second quarter , delivering strong financial results driven by our core growth drivers Dupixent and Vaccines . We continue to deliver on our Play to Win strategy , and our second quarter performance gives us confidence in Sanofi's growth trajectory for this year . Consequently , we are raising our full - year EPS guidance to around 12 % . Significant progress was made across several clinical and regulatory milestones and in June , we formed the Sanofi mRNA vaccines Center of Excellence with the aim to lead the field in this next chapter of vaccine innovation . We are well on our way making Sanofi more representative of communities we serve , executing on our Diversity and Inclusion strategy and creating a work environment where our people can bring their best selves to transform the practice of medicine . " Business operating income Business net income ( ¹ ) Business EPS ( 1 ) Q2 2021 € 8,744m € 1,210m € 0.97 € 1,428m € 2,265m € 1,731m € 1.38 SANOFI Change + 6.5 % -84.1 % -84.0 % -29.0 % + 5.5 % + 8.1 % + 7.8 % Change at CER + 12.4 % + 13.8 % + 16.8 % + 16.4 % H1 2021 1 Paris , July 29 , 2021 € 17,335m € 2,776m € 2.22 € 3,353m € 4,903m € 3,748m € 3.00 Change + 0.9 % -70.1 % -70.0 % -6.0 % + 4.7 % + 6.4 % + 6.8 % Change at CER + 7.2 % + 13.6 % + 15.6 % + 16.0 % Changes in net sales are expressed at constant exchange rates ( CER ) unless otherwise indicated ( definition in Appendix 9 ) ( 1 ) In order to facilitate an understanding of operational performance , Sanofi comments on the business net income statement . Business net income is a non - GAAP financial measure ( definition in Appendix 9 ) . The consolidated income statement for Q2 2021 is provided in Appendix 3 and a reconciliation of reported IFRS net income to business net income is set forth in Appendix 4 ; ( 2 ) 2020 restated business EPS was € 5.86 ; ( 3 ) Free cash flow is a non - GAAP financial measure ( definition in Appendix 9 ) .