NVS Q4 2018 Earnings Report — Novartis AG Revenue & Financial Results | Market Cap Arena

Q4 2018 Earnings

Reported January 30, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2018	Q3 2018	Q4 2017	QoQ Change	YoY Change
Revenue	$13.7B	—	$13.2B	—	3.8%
Op. Income	$1.3B	—	$2.1B	—	-37.2%
Gross Margin	63.9%	—	65.9%	—	-2.0pp
Net Margin	8.7%	—	15.0%	—	-6.3pp
EPS (Diluted)	$0.52	—	$0.84	—	-38.1%
Free Cash Flow	$2.9B	—	$2.4B	—	17.2%

Revenue Flow

Item	Amount
REVENUE	$13.7B
Cost of Revenue	$4.9B
GROSS PROFIT	$8.7B
R&D Expenses	$2.4B
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$4.4B
Other Expenses	$636M
Operating Expenses	$7.4B
Cost & Expenses	$12.4B
OPERATING INCOME	$1.3B
Interest Income	$0
Interest Expense	$248M
Other Income/Expenses	-$35M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$70M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.2B
D&A	$2.0B
EBIT	$1.5B
EBITDA	$3.5B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$13.7B
Cost of Revenue	$4.9B
GROSS PROFIT	$8.7B
R&D Expenses	$2.4B
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$4.4B
Other Expenses	$636M
Operating Expenses	$7.4B
Cost & Expenses	$12.4B
OPERATING INCOME	$1.3B
Interest Income	$0
Interest Expense	$248M
Other Income/Expenses	-$35M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$70M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.2B
D&A	$2.0B
EBIT	$1.5B
EBITDA	$3.5B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.2B
Depreciation & Amortization	$2.0B
Stock-Based Compensation	$195M
Deferred Income Tax	$70M
Other Non-Cash Items	-$235M
Change in Working Capital	$583M
OPERATING CASH FLOW	$3.8B
Capital Expenditure	-$909M
Acquisitions (Net)	-$2.1B
Purchases of Investments	-$2.2B
Sales/Maturities of Investments	$161M
Other Investing Activities	$157M
NET CASH FROM INVESTING	-$4.9B
Net Debt Issuance	$477M
Common Stock Repurchased	-$249M
Common Dividends Paid	$0
Other Financing Activities	$225M
NET CASH FROM FINANCING	$453M
FREE CASH FLOW	$2.9B
Net Change in Cash	-$729M

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