TEVA(US:TEVA)2025-05-07 20:06Revenue Performance - Revenues in Q1 2025 were $3,891 million, a 2% increase in U.S. dollars or 5% in local currency compared to Q1 2024, driven by higher revenues from AUSTEDO, generic products, AJOVY, and UZEDY [279]. - The United States segment generated revenues of $1,910 million, an 11% increase, and segment profit of $532 million, a 52% increase compared to Q1 2024 [279]. - The Europe segment reported revenues of $1,194 million, a 6% decrease in U.S. dollars, and segment profit decreased by 22% compared to Q1 2024 [279]. - The International Markets segment generated revenues of $582 million, a 2% decrease in U.S. dollars, while segment profit decreased by 17% compared to Q1 2024 [279]. - Total revenues for the company in Q1 2025 were $3,891 million, an increase of 2% in U.S. dollars compared to Q1 2024 [359]. Profitability Metrics - Gross profit margin improved to 48.2% in Q1 2025, up from 46.4% in Q1 2024 [279]. - Gross profit in Q1 2025 was $1,877 million, a 6% increase from $1,771 million in Q1 2024, with a gross profit margin of 48.2% compared to 46.4% [361]. - Profit from the U.S. segment in Q1 2025 was $532 million, a 52% increase from $350 million in Q1 2024, primarily due to higher gross profit [319]. - Profit from the International Markets segment was $97 million in Q1 2025, a decrease of 17% from $117 million in Q1 2024 [355]. - Net income attributable to Teva in Q1 2025 was $214 million, compared to a net loss of $139 million in Q1 2024 [389]. Research and Development (R&D) Expenses - R&D expenses in Q1 2025 were $247 million, a 2% increase from $242 million in Q1 2024 [279]. - R&D expenses for the U.S. segment in Q1 2025 were $154 million, unchanged from Q1 2024 [316]. - R&D expenses for the Europe segment were $60 million in Q1 2025, an increase of 9% from $56 million in Q1 2024 [332]. - R&D expenses in Q1 2025 were $247 million, up 2% from $242 million in Q1 2024, representing 6.3% of revenues, unchanged from the previous year [366][369]. Cash Flow and Debt Management - Free cash flow generated in Q1 2025 was $107 million, significantly up from $32 million in Q1 2024, mainly due to higher proceeds from divestitures [284]. - Cash flow used in operating activities was $105 million in the first quarter of 2025, a decrease from $124 million in the same period of 2024, attributed to higher profits in the U.S. segment [417]. - As of March 31, 2025, total debt was $16,651 million, a decrease from $17,783 million as of December 31, 2024 [284]. - The company's financial leverage ratio improved to 73% as of March 31, 2025, down from 77% as of December 31, 2024 [412]. - The portion of total debt classified as short-term decreased to 3% as of March 31, 2025, from 10% as of December 31, 2024 [412]. Segment-Specific Revenue Highlights - AUSTEDO revenues in the U.S. segment for Q1 2025 were $396 million, a 40% increase from $282 million in Q1 2024, driven by volume growth and the approval of AUSTEDO XR [294]. - UZEDY revenues in the U.S. segment for Q1 2025 were $39 million, a 156% increase compared to Q1 2024, primarily due to volume growth [298]. - Combined revenues for BENDEKA and TREANDA in the U.S. segment for Q1 2025 were $36 million, a 20% decrease from Q1 2024, attributed to competition from alternative therapies and generic products [300]. - AJOVY revenues in the Europe segment increased by 14% to $58 million in Q1 2025, compared to $51 million in Q1 2024 [326]. - AJOVY revenues in the International Markets segment increased by 65% to $28 million in Q1 2025, compared to $17 million in Q1 2024 [346]. Operating Expenses - S&M expenses for the U.S. segment in Q1 2025 were $273 million, a 5% increase from $261 million in Q1 2024, driven by promotional activities for AUSTEDO [317]. - G&A expenses for the U.S. segment in Q1 2025 were $96 million, a 3% increase compared to $93 million in Q1 2024 [318]. - S&M expenses in Q1 2025 were $622 million, a 2% increase from $610 million in Q1 2024, accounting for 16.0% of revenues compared to 15.9% in Q1 2024 [373][374]. - G&A expenses in Q1 2025 were $297 million, a 7% increase from $278 million in Q1 2024, representing 7.6% of revenues compared to 7.3% in Q1 2024 [375][376]. Balance Sheet and Equity - Total balance sheet assets as of March 31, 2025, were $38,415 million, down from $39,326 million as of December 31, 2024 [400]. - Cash and cash equivalents as of March 31, 2025, were $1,697 million, a decrease from $3,300 million as of December 31, 2024 [405]. - Total equity increased to $6,269 million as of March 31, 2025, compared to $5,380 million as of December 31, 2024, driven by a positive impact from exchange rate fluctuations of $467 million and a net income of $214 million attributable to the company [413]. Earnings Per Share - Diluted earnings per share in Q1 2025 were $0.18, compared to a diluted loss per share of $0.12 in Q1 2024 [390]. - The non-GAAP diluted EPS for the three months ended March 31, 2025, was $0.52, an increase from $0.48 in the same period of 2024 [427].