Indivior PLC(US:INDV)2024-02-22 11:32Financial Performance - FY 2023 total net revenue increased by 21% to $1,093 million, with Q4 2023 net revenue up 22% to $293 million[8] - Adjusted operating profit for FY 2023 rose by 27% to $269 million, while Q4 2023 adjusted operating profit increased by 65% to $66 million[19] - FY 2023 net income was $2 million, a significant improvement from a net loss of $53 million in FY 2022; Q4 2023 net income was $54 million compared to a net loss of $183 million in Q4 2022[8] - Adjusted net income for FY 2023 increased by 32% to $223 million, with Q4 2023 adjusted net income rising by 56% to $61 million[8] - Q4 2023 operating profit was reported at $60 million, a significant improvement from a loss of $258 million in Q4 2022, with adjusted operating profit increasing 65% to $66 million[20] - FY 2023 reported net income was $2 million, while adjusted net income rose to $223 million, reflecting a 32% increase from FY 2022 adjusted net income of $169 million[25] - Q4 2023 diluted earnings per share were $0.38 on a reported basis and $0.43 on an adjusted basis, compared to a loss of $(1.34) per share in Q4 2022[26] - Basic earnings per share for FY 2023 was $0.01, a recovery from a loss of $0.38 in FY 2022[68] - Adjusted diluted earnings per share for FY 2023 improved, reflecting the positive trend in adjusted net income[144] Revenue Breakdown - SUBLOCADE net revenue for FY 2023 reached $630 million, reflecting a 54% increase year-over-year, with Q4 2023 net revenue of $176 million, up 49%[8] - Net revenue for Q4 2023 was $293 million, a 21.6% increase from $241 million in Q4 2022, and for FY 2023, it reached $1,093 million, up 21.4% from $901 million in FY 2022[41] - SUBLOCADE® revenue for Q4 2023 was $176 million, up 49% from $118 million in Q4 2022, and FY 2023 revenue was $630 million, a 54% increase from $408 million in FY 2022[57] Expenses and Costs - R&D expenses for FY 2023 increased by 47% to $106 million, driven by post-marketing studies and capacity expansion activities[16] - Selling, general, and administrative expenses for FY 2023 totaled $811 million, up from $763 million in FY 2022, driven by increased legal provisions and commercial investments[60] - The total exceptional items and adjustments in cost of sales for FY 2023 amounted to $8 million, compared to none in FY 2022[143] - Exceptional items and adjustments in selling, general and administrative expenses decreased from $302 million in FY 2022 to $268 million in FY 2023[143] Cash Flow and Investments - Cash and investments totaled $451 million at the end of 2023, down from $991 million in FY 2022, primarily due to litigation settlements and the Opiant acquisition[8] - Cash used in operations for FY 2023 was $292 million, a significant decline from cash provided by operations of $63 million in FY 2022[29] - FY 2023 cash outflow from investing activities was $98 million, including $124 million for the Opiant acquisition[30] - Cash and cash equivalents decreased to $316 million at the end of FY 2023 from $774 million at the end of FY 2022, reflecting a net cash outflow from operating activities of $315 million[46] Acquisitions and Assets - The company acquired 100% of Opiant Pharmaceuticals, Inc. in March 2023, which has been accounted for as an asset acquisition[50] - The acquisition of Opiant contributed $126 million to marketed products, reflecting the recognition of intangible assets[73] - The Group acquired an aseptic manufacturing facility for $5 million in cash and assumed certain contract manufacturing obligations, recognized as a business combination[123][124] - Goodwill of $5 million was recognized from the acquisition of the manufacturing facility, primarily due to Indivior-specific synergies[129] Shareholder Actions - The company initiated a third share repurchase program of up to $100 million, with approximately $42 million spent by February 16, 2024[10] - A share repurchase program commenced on November 17, 2023, with an aggregate purchase price of up to $100 million, and 1,413 thousand shares were repurchased by December 31, 2023[114] - The total cost of share repurchases during the period was $33 million, compared to $90 million in FY 2022[116] Taxation - The effective tax rate for FY 2023 was -100% due to minimal profit before taxation, with an adjusted tax expense of $51 million and an effective tax rate of 19%[22] - The effective tax rate for FY 2023 was impacted by an increase in the U.K. tax rate to 25%, resulting in a total tax benefit of $1 million, down from $42 million in FY 2022[62] - The tax on exceptional items and other adjustments for FY 2023 was $63 million, compared to $57 million in FY 2022[143] Legal and Regulatory Matters - The principal risks facing the Group have remained broadly unchanged, with increased commercialization risks due to competition in the opioid treatment market[32] - Indivior Inc. is named in over 400 civil lawsuits related to opioid marketing practices, with most cases consolidated in the Opioid MDL in Ohio[105] - The Group has been named in more than 30 lawsuits regarding tooth damage claims related to SUBOXONE products, which are in preliminary stages[108] - Humana, Inc. filed a complaint in Kentucky on August 20, 2021, with similar claims as in the Antitrust MDL, and the court lifted a stay on October 30, 2023[105] Financial Position - Total assets increased to $1,954 million as of December 31, 2023, from $1,769 million as of December 31, 2022, driven by growth in intangible assets and trade receivables[43] - Current liabilities rose to $1,305 million at the end of FY 2023, up from $1,019 million in FY 2022, primarily due to an increase in provisions[43] - Net working capital was negative $347 million as of December 31, 2023, compared to negative $283 million at the end of FY 2022[28] - The Group's total provisions increased to $419 million in 2023 from $308 million in 2022, driven by antitrust and other legal matters[84]