Final quarter comes to the rescue for Astra as profits drop
DRUGS GIANT AstraZeneca has revealed falling annual profits, but said a strong performance in the final quarter underscored a return to growth.
The group reported a 17 per cent fall in core operating profits to 5.7 billion US dollars (£4.4bn) for 2018.
Pre-tax profits fell 14 per cent with exchange rates stripped out, to 2 billion US dollars (£1.6bn).
But the firm said a “very strong” end to the year saw total fourth-quarter revenues rise 14 per cent with currency effects stripped out to 6.4 billion US dollars (£5bn), while core earnings lifted 23 per cent to 2.2 billion US dollars (£1.7bn).
Fourth-quarter pre-tax profits rose 69 per cent at constant currency to 730 million US dollars (£567m).
Shares lifted 3 per cent as the fourth-quarter results beat analyst expectations.
The group also gave a bullish outlook for the year ahead, forecasting product sales growing by a high single-digit percentage and core operating profits rising by a “mid-teens percentage”.
Pascal Soriot, the chief executive of AstraZeneca, commented: “Closing the year with another strong quarter, our performance confirmed that AstraZeneca has returned to growth.
“Our strategy and plans remain unchanged, with sales growth and a focus on cost management anticipated to drive growing operating profit.
“I’m pleased that we are fully on track to meet these commitments as we build a sustainable level of growth.”