Sanofi's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Recognised as the leading pharmaceutical group in Europe, Sanofi remains a key player in its sector. The company is present in almost 90 countries and has more than 100,000 employees worldwide. Last year, the company's business was buoyant in almost all of its geographical areas. Here is the full update on the annual results for the year 2020.

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Sanofi's market cap, dividends, sales and earnings in 2020
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Fiscal 2020 annual sales for Sanofi

For the full twelve months of fiscal year 2020, Sanofi's sales amounted to €36,041 million. On a reported basis, this represents a slight year-on-year decline of 0.2%. The impact of exchange rate fluctuations was negative at 3.5 percentage points. The group's annual turnover grew by 3.3% at constant exchange rates.

In the financial year 2020, the pharmaceutical business grew by 3.1% to €25,674 million. 25,674 million, driven by the remarkable performance of Specialty Medicines. Vaccine sales rose by 8.8% to €5,973 million.

This performance was driven by increased sales of influenza vaccines. It was also driven by the expansion of paediatric combinations. The latter more than offset the negative impact of the coronavirus pandemic on the other Vaccines franchises.

Sales of the Consumer Healthcare business declined over the full year in 2020. They fell by 1.9% to 4,394 million euros. This decline was mainly due to the voluntary recall of Zantac in October 2019. It was also due to product suspensions and disposals of non-core brands.

 

Sales by geographic area

In the United States, Sanofi generated sales of €13,465 million in 2020. 13,465 million, up 8.2% year-on-year. This solid performance was mainly driven by strong growth in Dupixent sales. This more than compensated for the decline in Diabetes sales.

For the full year 2020, sales in Europe were €9,151 million, up 1.5%. This increase was driven by the remarkable performance of influenza vaccines and Dupixent. This offset the decline in sales in General Medicine and Consumer Health Care.

In the rest of the world, the Group's sales grew slightly by 0.2% to €13,425 million for the full year. In China, for example, turnover rose by 7.7% year-on-year to EUR 2,454 million. In Japan, it increased by 9.5% to 1,735 million euros for the year.

In Brazil, the company's business grew by 5.6% in 2020, with turnover of 836 million euros. 641 million, up 6.7% year-on-year.

 

Operating profit from Sanofi's activities

In 2020, Sanofi's operating profit from ordinary activities was €9,762 million. This represents an increase of 4.4% year-on-year. Including VAT, it showed an increase of 9.7%. The ratio of operating profit to turnover was 27.1%, an increase of 1.2 percentage points.

For the full year 2020, business operating profit from pharmaceuticals rose by 8.0% (12.0% CER) to EUR 8,833 million. 8,833 million. The business operating profit to sales ratio was 34.4%, an increase of 2.6 percentage points.

Operating profit from Vaccines activities amounted to 2,276 million euros in 2020. 2,276 million in 2020, up 4.4% (11.2% at CER) year-on-year. Here, the business operating profit to sales ratio was stable at 38.1%.

In contrast, Consumer Health Care operating profit fell by 14.4% (-8.1% incl. VAT) for the full year 2020. It is therefore estimated at 1,419 million euros. The downward trend can be seen in the ratio of operating profit to turnover. This is 32.3%, down 3.0 percentage points.

 

Performance of other economic indicators

For the year ended December 31, 2020, Sanofi's business net income reached 7,347 million euros. This represents an increase of 4.2% compared to the previous year. Including VAT, it rose by 9.6%. The business net profit to sales ratio increased by 0.9 percentage points to 20.4% (20.7% including VAT).

The group generated business earnings per share (EPS) of EUR 5.86 in 2020. 5.86, up 3.9% (reported) on the previous year. On a reported basis, it is up 9.2% year-on-year. The average number of shares outstanding for the whole of last year was 1,253.6 million, compared with 1,249.9 million for 2019.

In 2020, the company's free cash flow amounts to EUR 6,982 million, an increase of 16.1% year-on-year. At 31 December 2020, the company's net financial expenses are estimated at €337 million, compared with €303 million a year earlier. Operating expenses amounted to €14,919 million. 14,919 million, a decrease of 6.2% (4.0% including VAT).

 

Sanofi dividend and market capitalisation in 2021

The Sanofi Board of Directors met on February 4, 2021. At this meeting, it was proposed to pay a dividend of € 3.20 per share for the financial year 2020. This is the 27th year in a row that the dividend has been increased.

This proposal was approved by the company's shareholders at the General Meeting held on 30 April 2021. The dividend was paid on 7 May 2021.

In addition, Sanofi is present on the equity markets. It is one of the CAC 40 companies. In 2020 (as of October), the total market capitalisation of the pharmaceutical group is estimated at 106.85 billion euros.

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