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Our Financial Results

Results in line with our expectations
PASCAL LEMAIRE, Executive Vice President Finance

The results from 2019-2020 are solid and in line with our objectives, with revenue of €4.7 billion—up 1.6% at real exchange rates on the previous year.

Our 2019/2020 results

Continued growth

Group revenue for the 2019/20 financial year amounted to €4.688 billion, an increase of 1.6% at real exchange rates and 3.6% at constant exchange rates, compared with the previous financial year. Revenue from brand-name medicines (€3.285 billion) represents 70% of the Group revenue, and generics 30% (€1.403 billion).

Sales of brand-name medicines grew by 1.6% at current rates and 3.6% at constant rate compared with 2018/19. This progression is mainly due to the increase in the volume of brand-name medicine sales (+2.9% in boxes distributed compared with the previous financial year) and a good performance in oncology.

Operating income increased to €280 million, or 6% of Group revenue. EBITDA amounted to €626 million, or 13% of Group revenue, an increase compared with the previous year due to better control of expenses and re-prioritization of certain projects, particularly considering the current health crisis.

Sustained growth in oncology

Servier has made oncology one of its priorities and is devoting 50% of its R&D budget to it, starting in the 2020/21 financial year. The Group aims to become a recognized and innovative player treating certain cancers for which there is an important need. The acquisition of the biotech Symphogen, in June 2020, and the announcement on December 21, 2020 of the proposed acquisition of the oncology division of Agios Pharmaceuticals are fully in line with the Group’s strategy and mark its acceleration in this area.

Group revenue of brand-name medicines in oncology rose to €448 million in 2019/20 from €397 million in 2018/19, an increase of 12.8%. This increase is mainly due to higher sales of Onivyde® (+35.4%), Oncaspar® (+12.7%) and Lonsurf® (+8.9%).

Proven leadership in cardio-metabolism

Servier maintains its leading position in cardio-metabolism with sales of brand-name medicines amounting to €2.671 billion, representing 57% of Group revenue, an increase of 2.1% compared with 2018/19 (€2.617 billion).

Sales of Diamicron® (revenue of €510 million), the Group’s leading brand-name medicine in terms of revenue, and Daflon® (revenue of €440 million) made strong contributions to the Group’s performance in the area of cardio-metabolism. Single Pill Combinations also contributed to the growth in cardio-metabolism sales. Triplixam® is today the most widely prescribed triple fixed-dose combination in the world for its indication and in the countries where it is distributed.

A growing generics business

Revenue generated by sales of generic medicines represented 30% of Group revenues, i.e., €1.403 billion, an increase of 1.4% at real rates and 3.6% at constant rates compared with 2018/19 (€1.383 billion).

Generic medicines are distributed worldwide by four of the Group’s subsidiaries: Biogaran in France, EGIS in Eastern Europe, Pharlab in Brazil and Swipha in Nigeria. Biogaran remains, for the second consecutive year, the leader on the generics market in France with more than 30% of the market share.

 

Growth driven by international expansion

The Group generates 79% of its revenue outside France, amounting to €3.698 billion, an increase of 3.3% compared with 2018/19. Most brand-name medicines revenue, or 96%, is generated internationally.

Over half of the Group’s revenue is generated outside the European Union, an increase of 4.9% over the previous year.

During the 2019/20 financial year, the Group distributed more than one billion boxes of medicines worldwide, with 9 out of 10 boxes of brand-name medicines distributed internationally.

 

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