Financial report for the period 1 January to 31 December 2018
Lundbeck realized 8% growth in revenue (local currencies)
and 48% growth in EPS in 2018
HIGHLIGHTS
- Revenue reached DKK 18,117 million in 2018 representing an increase of 5% (8% in local currencies) compared to 2017
- Revenue of Abilify Maintena® increased 20% to DKK 1,595 million (23% in local currencies)
- Revenue of Brintellix®/Trintellix® increased 31% to DKK 2,182 million (37% in local currencies)
- Revenue of Northera® increased 10% to DKK 1,806 million (15% in local currency)
- Revenue of Onfi® increased 5% to DKK 3,165 million (12% in local currency)
- Revenue of Rexulti® increased 38% to DKK 1,723 million (44% in local currencies)
- Revenue in North America increased 1% to DKK 10,743 million (6% in local currencies)
- Revenue in International Markets increased 3% to DKK 3,500 million (10% in local currencies)
- Revenue in Europe increased 6% to DKK 2,970 million (6% in local currencies)
- EBIT increased 20% to DKK 5,301 million in 2018 compared to DKK 4,408 million in 2017 and the EBIT margin reached 29.3% compared to 25.6% the year before
- EPS grew 48% to DKK 19.66 in the period compared to DKK 13.28 the year before
- Free cash flow reached DKK 3,074 million representing an increase of 39%, and the net cash position improved to DKK 6,635 million compared to DKK 3,677 million the year before
- Lundbeck and Otsuka received positive headline results from a proof of concept study investigating the combination treatment of brexpiprazole and sertraline for the treatment of Post-Traumatic Stress Disorder
- For 2019, Lundbeck expects revenue to reach DKK 16.1–16.7 billion and EBIT to reach DKK 4.2–4.6 billion
- The Board of Directors proposes to pay a dividend of DKK 12.00 per share, equal to a pay-out ratio of 61%
- Lundbeck’s revised strategy, Expand and Invest to Grow, envisions expanded operating space in brain diseases, rebuilding the R&D pipeline through external innovation while maintaining focus on profitability aspiring to an EBIT-margin of at least 25%
- Following Expand and Invest to Grow, Lundbeck will see increased capital needs related to our strategic initiatives and therefore, revises the dividend policy from the current range of 60-80% of net profit to a range of 30-60% of net profit from 2019 onwards
In connection with the financial report, Lundbeck’s President and CEO Deborah Dunsire said:
“Lundbeck has delivered its best financial result ever and has more than achieved the financial targets set in 2016. Our goal now is to achieve sustainable, profitable growth through maximizing our neuroscience platform and strengthening our pipeline across all phases. We have conducted a strategic review and some of the elements include broadening the disease focus within brain health, as well as accelerating our internal pipeline and accessing external innovation to capitalize on our competitive edge”.
| DKK million | FY 2018 | FY 2017 | Growth |
| Reported Revenue | 18,117 | 17,234 | 5% |
| Reported EBIT | 5,301 | 4,408 | 20% |
| Reported EPS | 19.66 | 13.28 | 48% |
| Reported EBIT margin | 29.3% | 25.6% | - |
| Core Revenue* | 18,117 | 17,234 | 5% |
| Core EBIT* | 6,158 | 5,115 | 20% |
| Core EPS* | 23.71 | 16.50 | 44% |
| Core EBIT margin* | 34.0% | 29.7% | - |
*For definition of the measures “Core Revenue”, “Core EBIT” and “Core EPS”, see note 4 Core reporting
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