UCB HY2022 Financial Results: Strong performance, resilience and delivery

The UCB Half Year Report 2022 tells me that we are continuing UCB’s course as it navigates today’s challenging environment. We are managing generic erosion curves, a launch delay in the U.S. and the inflation in costs, which gives me confidence that we will deliver strong long-term growth and create value for all stakeholders – now and into the future.

If you were to ask me what our focus is, it’s the new product launches that we are currently preparing for. Those are the launches we have planned for new treatment options to serve people living with psoriasis, psoriatic arthritis, across the full spectrum of axial spondyloarthritis and generalized myasthenia gravis.

Our new product for people living with psoriasis received strong regional launches in Europe and the UK late last year and in Japan and Canada earlier this year. I’m excited to see the strong patient growth and the great feedback from people living with psoriasis in the months since. I’m confident we will soon be able to bring it to US patients following our submission of the response to the FDA complete response letter by the end of 2022.

Our ability to bring new products in specific areas to address the unmet needs relies on the performance of our existing business. And the first half of 2022 delivered yet another period of strong delivery and growth. The impacts from the loss of exclusivity of two of our  epilepsy products are visible and they will continue to impact our near-term future. On the other hand, our latest acquisition is adding to our growth profile.

With that, I’ve confidence in our ability to deliver on our guidance. Our expectations for 2025 remain unchanged: we expect revenue in 2025 to reach at least € 6 billion and underlying profitability (adjusted EBITDA) to reach the low- to mid-thirties in percent of revenue.

Last but not least, I want to reassure you that we are closely following various macroeconomic factors. We continue, as ever, to evaluate consequences to the business environment diligently and to assess any potential near- and mid-term challenges that may emerge so that we can take action to mitigate the effects.
 
Wishing you a peaceful summer break and a safe and healthy second half of 2022. And if you would like to chat with me, you can find me at Antje.Witte@ucb.com.
 
I leave you with these key figures from the first six months of the year:

• Revenue increased to € 2.93 billion (+5%, +3 CER) net sales € 2.70 billion (+2%, 0% CER), impacted, as expected, by generic erosion
• Underlying profitability (adjusted EBITDA) was € 814 million (-3%, -2% CER) or 28% of revenue, impacted, as expected, by the inclusion of the new acquisition
• Financial guidance for 2022 (updated June 24, 2022) confirmed: Revenue expected to reach € 5.3 – 5.4 billion, adjusted EBITDA in the range of 21 – 22% of revenue, Core EPS of € 3.70 – 4.00 expected
• Financial guidance for 2025 remains unchanged: Revenue of at least € 6 billion and adj. EBITDA margin in the low to mid-thirties in percent of revenue.