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• Revenue Growth: 17% increase, 19% at constant rate, reaching EUR6.150 billion.

• Net Sales: EUR5.6 billion, 15% growth, 17% at constant rate.

• Adjusted Gross Margin: Improved by 1.5 percentage points to 78.3%.

• Adjusted EBITDA: Increased by 9% to EUR1.476 billion, with a margin of 24%.

• Profit: EUR1.065 billion, compared to EUR343 million in 2023.

• Core EPS: EUR4.98 per share, a 19% increase from 2023.

• Key Growth Drivers: BIMZELX, FINTEPLA, RYSTIGGO, ZILBRYSQ, BRIVIACT, and EVENITY.

• BIMZELX Sales: Quadrupled to EUR607 million.

• FINTEPLA Growth: 50% year-over-year increase.

• BRIVIACT Sales: Grew by 19% to EUR686 million.

• CIMZIA Sales: Surpassed EUR2 billion for the third consecutive year.

• 2025 Revenue Guidance: Expected between EUR6.5 billion and EUR6.7 billion.

• 2025 EBITDA Margin Guidance: Expected to reach 30% of revenue.

• Warning! GuruFocus has detected 7 Warning Signs with UCBJF.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• UCB SA (UCBJF) reported a significant revenue growth of 17% in 2024, with a 19% increase at constant rates, showcasing a strong recovery from the previous year's decline.

• The company's five key growth drivers collectively generated over EUR 1.3 billion in revenue, tripling their performance compared to the previous year.

• UCB SA's R&D success rate stands at 29%, significantly higher than the industry average of 8%, indicating strong innovation capabilities.

• The company achieved a positive Phase 3 trial for dapirolizumab pegol in lupus, marking it as only the third positive Phase 3 trial for this challenging disease.

• UCB SA's adjusted gross margin improved by 1.5 percentage points, driven by an enhanced product mix with higher-margin growth drivers.

Negative Points

• Despite the revenue growth, UCB SA faced a 23% increase in operating expenses, primarily due to significant investments in marketing and sales for new product launches.

• The company experienced pricing pressure on CIMZIA, with expected high single-digit to low double-digit declines in the US due to increased competition and pricing dynamics.

• UCB SA's adjusted EBITDA margin decreased to 24% from 25.7% in the previous year, reflecting increased marketing and sales expenses.

• The termination of the minzasolmin development program led to accelerated recognition of revenues and termination expenses, impacting R&D expenses.

• The company's effective tax rate was unusually low at 8%, influenced by the divestment of its mature neurology and allergy portfolio in China, which may not be sustainable in the future.