24th Apr 2015 06:24
LONDON (Alliance News) - FTSE-100 listed pharmaceuticals giant AstraZeneca PLC maintained its full-year guidance Friday, as the strong dollar hit its revenue in the first quarter of 2015, and it posted a decline in core earnings per share and operating profit due to continued investment in its pipeline.
AstraZeneca posted a pretax profit of USD678 million, up from USD638 million, as a decline in revenue of 6% to USD6.06 billion from USD6.46 billion was offset by lower cost of sales and other operating income of USD377 million. Revenue growth was hit by the strength of the dollar, and at constant currency revenue rose 1%.
However, at the core level, operating profit was down 4%, mostly as a result of reduced margin and higher investments and research and development costs, as AstraZeneca continued to invest in developing its pipeline and sales and marketing. Core earnings per share fell 7% at actual exchange rates to USD1.08.
Core figures exclude amortisation, impairment, restructuring charges and other exceptional items.
"Our encouraging performance in the quarter supports our full-year guidance," said Chief Executive Officer Pascal Soriot in a statement.
The company continues to expect its revenue for the year to decline by a mid single-digit percentage at constant currency, and core earnings per share to increase by a low single-digit percentage at constant currency.
At current exchange rates, AstraZeneca expects revenue to decline at a low double-digit percentage, and core earnings per share to be broadly in line with 2014.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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