AstraZeneca Share Price Fell 2.37% on Q4 and FY 2023 Results

The AstraZeneca plc (LON: AZN) share price fell 2.37% after releasing its Q4 and full-year financial results for 2023. The company's total revenue reached $45,811 million in the full fiscal year, marking a 6% increase. This growth occurred even after accounting for a $3,736 million decrease attributed to the sales of COVID-19-related products.

When excluding the impact of COVID-19-related medicines, the company witnessed a robust growth of 15% in total revenue and a 14% rise in product sales. The double-digit growth across various sectors was noteworthy as Oncology saw a 21% increase, Cardiovascular, Renal, and Metabolism (CVRM) grew by 18%, Respiratory & Immunology (R&I) by 10%, and Rare Disease by 12%.

The gross margin on core product sales reached 82%, an improvement of two percentage points, mainly due to reduced sales of lower-margin COVID-19 medicines. The core operating margin climbed to 32%, benefiting from a two percentage point increase. This includes gains from updated contractual agreements for Beyfortus, amounting to $712 million, categorised as core other operating income. 

However, increased SG&A expenses during the quarter, attributable to the timing of expenses and higher investments in new product launches such as Airsupra, Wainua, and Truqap, slightly dampened operating margins.

The annual core tax rate was set at 17%. However, it faced a downturn to 10% in the fourth quarter, influenced by tax authority reviews, appeal processes, and adjustments, albeit counterbalanced by a standard intragroup reorganisation of intellectual property.

Core Earnings Per Share (EPS) saw a 15% increase, reaching $7.26. A second interim dividend of $1.97 per share was announced, culminating in a total dividend of $2.90 for the fiscal year 2023.

Pascal Soriot, Chief Executive Officer, AstraZeneca, said: “As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress, with double-digit earnings growth, and investment in exciting areas of science, including antibody-drug conjugates and cell therapies, that lay the foundations for long-term success. We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies. Our differentiated and growing portfolio of approved medicines, global reach and rich R&D pipeline give us confidence that we will continue to deliver industry-leading growth.”

AstraZeneca share price. 

AstraZeneca's share price fell 2.37% to trade at 10250.0p from Wednesday’s closing price of 10499.0p.