NVS FY 2018 Earnings Report — Novartis AG Revenue & Financial Results | Market Cap Arena

FY 2018 Earnings

Reported January 30, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$46.1B	—	$43.4B	—	6.2%
Op. Income	$8.4B	—	$8.7B	—	-3.4%
Gross Margin	68.5%	—	68.6%	—	-0.1pp
Net Margin	27.4%	—	17.7%	—	9.6pp
EPS (Diluted)	$5.38	—	$3.25	—	65.5%
Free Cash Flow	$10.9B	—	$9.9B	—	10.6%

Revenue Flow

Item	Amount
REVENUE	$46.1B
Cost of Revenue	$14.5B
GROSS PROFIT	$31.6B
R&D Expenses	$8.5B
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$13.7B
Other Expenses	$980M
Operating Expenses	$23.2B
Cost & Expenses	$37.7B
OPERATING INCOME	$8.4B
Interest Income	$293M
Interest Expense	$973M
Other Income/Expenses	$5.7B
INCOME BEFORE TAX	$14.1B
Income Tax Expense	$1.3B
Net Income from Continuing Ops	$12.8B
Net Income from Discontinued Ops	$0
Other Adjustments	-$186M
NET INCOME	$12.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$12.6B
D&A	$5.2B
EBIT	$15.0B
EBITDA	$20.2B
EPS	$5
EPS Diluted	$5

Income Statement

Item	Amount
REVENUE	$46.1B
Cost of Revenue	$14.5B
GROSS PROFIT	$31.6B
R&D Expenses	$8.5B
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$13.7B
Other Expenses	$980M
Operating Expenses	$23.2B
Cost & Expenses	$37.7B
OPERATING INCOME	$8.4B
Interest Income	$293M
Interest Expense	$973M
Other Income/Expenses	$5.7B
INCOME BEFORE TAX	$14.1B
Income Tax Expense	$1.3B
Net Income from Continuing Ops	$12.8B
Net Income from Discontinued Ops	$0
Other Adjustments	-$186M
NET INCOME	$12.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$12.6B
D&A	$5.2B
EBIT	$15.0B
EBITDA	$20.2B
EPS	$5
EPS Diluted	$5

Cash Flow Statement

Item	Amount
Net Income	$12.6B
Depreciation & Amortization	$6.9B
Stock-Based Compensation	$759M
Deferred Income Tax	$1.2B
Other Non-Cash Items	-$7.7B
Change in Working Capital	$499M
OPERATING CASH FLOW	$14.3B
Capital Expenditure	-$3.4B
Acquisitions (Net)	-$1.1B
Purchases of Investments	-$2.7B
Sales/Maturities of Investments	$639M
Other Investing Activities	$895M
NET CASH FROM INVESTING	-$5.6B
Net Debt Issuance	$4.2B
Common Stock Repurchased	-$2.0B
Common Dividends Paid	-$7.0B
Other Financing Activities	$581M
NET CASH FROM FINANCING	-$4.2B
FREE CASH FLOW	$10.9B
Net Change in Cash	$4.4B

Balance Sheet

Item	Amount
Cash & Equivalents	$13.3B
Short-Term Investments	$2.7B
Net Receivables	$9.7B
Inventory	$7.0B
Other Current Assets	$3.2B
TOTAL CURRENT ASSETS	$35.6B
PP&E (Net)	$15.7B
Goodwill	$35.3B
Intangible Assets	$38.7B
Long-Term Investments	$10.7B
Tax Assets	$8.7B
Other Non-Current Assets	$895M
TOTAL NON-CURRENT ASSETS	$110.0B
TOTAL ASSETS	$145.6B
Account Payables	$5.6B
Short-Term Debt	$9.6B
Deferred Revenue	$236M
Other Current Liabilities	$9.6B
TOTAL CURRENT LIABILITIES	$29.6B
Long-Term Debt	$22.5B
Deferred Revenue NC	$5.9B
Deferred Tax Liabilities	$7.5B
Other Non-Current Liabilities	$8.8B
TOTAL NON-CURRENT LIABILITIES	$37.3B
TOTAL LIABILITIES	$66.9B
Common Stock	$944M
Additional Paid-In Capital	$0
Retained Earnings	$82.2B
Treasury Stock	-$69M
Accum. Other Comp. Income	$77.7B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$78.6B
Minority Interest	$78M
TOTAL EQUITY	$78.7B
TOTAL LIABILITIES & EQUITY	$145.6B
Total Debt	$32.1B
Net Debt	$18.8B