TEVA(US:TEVA)2025-05-07 11:00Revenue Performance - Q1 2025 revenues reached $3.9 billion, a 5% increase in local currency terms compared to Q1 2024, with a net foreign exchange impact of $100 million resulting in a 2% growth in reported revenues [3]. - AUSTEDO generated worldwide revenues of $411 million in Q1 2025, reflecting a 39% increase in local currency terms year-over-year, with the full-year revenue outlook raised to $1.95-2.05 billion [3]. - AJOVY's global revenues were $139 million in Q1 2025, a 26% increase in local currency terms compared to Q1 2024, reaffirming a $600 million revenue outlook for 2025 [3]. - Revenues from the United States segment in Q1 2025 were $1,910 million, an increase of $184 million, or 11%, compared to Q1 2024 [28]. - Revenues from the Europe segment in Q1 2025 were $1,194 million, a decrease of 6% compared to Q1 2024 [44]. - Revenues from the International Markets segment in Q1 2025 were $582 million, a decrease of 2% compared to Q1 2024, but increased by 5% in local currency terms [57]. - Revenues from other activities in Q1 2025 were $206 million, a decrease of 9% in U.S. dollars compared to Q1 2024 [70]. - The outlook for total revenues in 2025 is projected to be between $16.8 billion and $17.2 billion [72]. - AUSTEDO revenues are expected to be between $1.950 billion and $2.050 billion in 2025 [72]. - Net revenues for Q1 2025 were $3,891 million, a 1.9% increase from $3,819 million in Q1 2024 [81]. Profitability Metrics - Non-GAAP diluted EPS for Q1 2025 was $0.52, an 8% increase year-over-year, while GAAP diluted EPS was $0.18 [3]. - Operating income for Q1 2025 was $519 million, representing a 13.3% margin, compared to an operating loss of $218 million in Q1 2024 [14]. - Gross profit for Q1 2025 was $1,877 million, up from $1,771 million in Q1 2024, reflecting a gross margin improvement [83]. - Net income attributable to Teva for Q1 2025 was $214 million, compared to a net loss of $139 million in Q1 2024 [83]. - Non-GAAP net income attributable to Teva for diluted earnings per share was $602 million in Q1 2025, compared to $548 million in Q1 2024 [83]. - The company reported a total reportable segment profit of $958 million for Q1 2025, up from $890 million in Q1 2024 [103]. Cash Flow and Financial Position - Free cash flow generated in Q1 2025 was $107 million, compared to $32 million in Q1 2024, indicating improved cash generation capabilities [23]. - Cash and cash equivalents decreased to $1,697 million as of March 31, 2025, down from $3,300 million at the end of 2024 [87]. - Total assets decreased to $38,415 million as of March 31, 2025, from $39,326 million at the end of 2024 [88]. - Total current liabilities decreased to $11,157 million as of March 31, 2025, compared to $12,796 million at the end of 2024 [88]. - The company reported a net cash used in operating activities of $105 million for Q1 2025, compared to $124 million for Q1 2024 [90]. Research and Development - Research and Development expenses in Q1 2025 were $247 million, a 2% increase compared to Q1 2024, driven by immunology and oncology projects [12]. - The company is preparing for the Phase 3 program initiation for duvakitug in H2 2025, with an NDA submission for olanzapine LAI also expected in H2 2025 [3]. - Research and development expenses remained stable at $154 million for both Q1 2025 and Q1 2024, indicating consistent investment in innovation [101]. Segment Performance - Gross profit from the United States segment increased by 23% to $1,058 million in Q1 2025, with a gross profit margin of 55.4% [41]. - Segment profit from the United States segment was $532 million in Q1 2025, a 52% increase compared to $350 million in Q1 2024 [42]. - Gross profit from the Europe segment in Q1 2025 was $658 million, down 11% from $738 million in Q1 2024, with a gross profit margin of 55.1% [50]. - Profit from the Europe segment in Q1 2025 was $329 million, a decrease of 22% compared to $423 million in Q1 2024 [52]. - Gross profit from the International Markets segment in Q1 2025 was $278 million, a decrease of 6% compared to $297 million in Q1 2024 [65]. - Profit from the International Markets segment in Q1 2025 was $97 million, a decrease of 17% compared to $117 million in Q1 2024 [67]. Strategic Initiatives - The company expects to achieve a 30% operating profit margin by 2027 as part of its Pivot to Growth Strategy, with targeted net savings of approximately $700 million by that year [3]. - The company plans to divest its API business as part of its strategy to streamline operations and focus on core areas [82].