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Today (February 6) was good for the shareholders of Astrazeneca (LSE: AZN). He Ftse 100The largest company vaulted 5.9% higher than 11,786p after dropping a strong set of profits.
This helped bring to the feet up to 8,766, an intraayos record. Interest rates were also reduced today, reducing the cost of loans to 4.5%. So, more profits could be ahead.
I added to my participation in the pharmaceutical giant in early November when the actions fell below 10,000p. This followed the news that some executives were under investigation in China, which suspected that it could not matter in five years. We also receive news about that today.
Strong growth and increasing profits
In 2024, Astrazeneca's revenues increased 21% year after year to $ 54.1 billion based on constant currency. That was ahead of the orientation for the growth of adolescents and better than what analysts expected ($ 53.1 billion).
The growth of sales was strong in all areas, with its oncology (24%more) and respiratory divisions and immunology (24%) that lead the road. Cancer treatments represent about 41% of total sales.
Looking at regions, Europe (more than 26% of constant exchange rates) and emerging markets, excluding China (32%), faster increased. However, its largest market, the United States, registered an impressive income growth of 22% last year.
In the final result, central profits per share (EPS) increased 19% to $ 8.21, before forecasts ($ 8.15), while earnings before taxes increased 38% to $ 8.7 billion.
CEO Pascal Soriot commented: “This year marks the beginning of an unprecedented period rich in catalysts for our company, an important step in our Ambition 2030 trip to offer total income of $ 80 billion for the end of the decade. ”
While growth is expected to be slower in 2025, things still seem solid. Income will increase by a high percentage of a single digit, with EPS increasing by a low percentage of two digits. I would not be surprised that these figures end up a little higher this time next year.
Finally, the dividend rose to 7% last year, although the forecast performance is only 2.2%.
Drug pipe to the ocean
According to my account, Astrazeneca had 14 drugs of great success in 2024, which means that each generated more than $ 1 billion in annual sales. But a handful of others are also approaching.
A reason why I am a shareholder is the deep portfolio of innovative treatments of the company and possible future box office successes. Last year, he delivered nine positive stage studies and anticipates seven other possible new medications this year.
This gives the company many shots to the goal, although some of them will lose the goal. Test failures in the late stage are an inevitable risk here, as well as adverse regulation. Donald Trump's Secretary of Health, the great pharmaceutical critic Robert F Kennedy, also remains a wild card.
Meanwhile, a global commercial war caused by Trump's tariffs could see Astrazeneca face a little more regulatory scrutiny in China. Speaking of that …
A drop in the ocean
What happens to China then? Well, this matter is related to unpaid import taxes in two cancer medications. But the good news is that the company sees the fine for this between $ 900k and $ 4.5 million.
While obviously it is not ideal to be in the bad books with the Chinese authorities, this amount is small potatoes for a global pharmaceutical giant.
As a shareholder, I am happy with everything I have read here. But I will wait for another dip before buying more shares.
(Tagstotranslate) category. Investing
