Common-Size Income Statement
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Revenue Composition and Trends
- The proportion of revenue coming from product sales has generally decreased from 84.36% in 2017 to 79.53% in 2020, with a slight recovery to 80.56% in 2021. Meanwhile, revenues from anti-CD20 therapeutic programs showed a gradual increase from 12.7% in 2017 to 15.1% in 2021, indicating a growing contribution from this segment. The share of other revenues rose from 2.93% in 2017 to a peak of 5.76% in 2020 before declining to 4.34% in 2021. Overall, the revenue distribution suggests a moderate diversification with a stronger emphasis on anti-CD20 therapeutics over the period.
- Cost and Profitability Metrics
- Cost of sales, excluding specific amortization and impairment charges, remained relatively stable around 13-14% of revenue until 2020 but rose sharply to 19.21% in 2021. This increase contributed to a decline in gross profit margin from 86.72% in 2017 to 80.79% in 2021. The declining gross profit margin signals upward pressure on direct costs or a change in product mix impacting profitability.
- Operating Expenses and Amortization
- Research and development (R&D) expenses fluctuated notably, dropping from 18.36% in 2017 to 15.86% in 2019, then sharply increasing to 29.68% in 2020 before declining to 22.78% in 2021. Such volatility indicates varying levels of investment in innovation or new development cycles. Selling, general and administrative (SG&A) expenses showed a rising trend from 15.77% in 2017 to 24.35% in 2021, representing increased costs related to sales and administration. Amortization and impairment charges were decreasing from 6.64% in 2017 to 3.41% in 2019 but escalated sharply again to 8.03% in 2021, suggesting episodic intangible asset write-downs or higher amortization expenses in the latest year.
- Other Operating Factors
- Collaboration profit sharing increased in percentage terms up to 2020 but fell significantly to 0.07% in 2021. Gains and losses on divestitures and fair value remeasurements showed mixed effects; notable gains in 2020 were not sustained in 2021. Charges relating to restructuring were minimal or absent in later years. These elements reflect occasional financial impacts outside core operations that affected profitability variably.
- Operating Income and Related Metrics
- Income from operations stayed relatively strong, increasing from 43.54% in 2017 to a peak of 48.98% in 2019, then declining sharply to 25.87% in 2021. This decline corresponds with increased cost pressures and expenses, indicating a diminishing operational margin. Interest income was low and decreased over time, while interest expense remained relatively stable but slightly increased in 2021. Gains or losses on investments were volatile, with a significant positive impact in 2020 (+5.1%) followed by a substantial negative effect in 2021 (-7.51%).
- Other Income and Foreign Exchange Effects
- Foreign exchange gains or losses were marginal but showed a slight downward trend, indicating minor currency impacts. Other income and expenses were generally small in proportion but showed significant fluctuation, with a notable positive effect in 2020 followed by a considerable negative swing in 2021. These fluctuations affected overall income before tax.
- Income Before Taxes and Tax Expenses
- Income before income taxes exhibited an upward trend through 2019, peaking near 49%, but decreased sharply afterward to 16.21% in 2021. Concurrently, income tax expense as a percentage of revenue decreased substantially from -20.03% in 2017 to -0.48% in 2021, indicating lower relative tax burdens or possibly changes in tax strategy or profitability structure.
- Net Income Trends
- Net income attributable to the company showed a significant rise from 20.69% of revenue in 2017 to 40.96% in 2019, followed by a descending pattern down to 14.17% in 2021. This reflects the impact of higher costs and expenses, diminished operating income, and other negative items especially in the latest fiscal year. Net income attributable to noncontrolling interests remained relatively minor but became more negative in 2021.
- Summary of Financial Dynamics
- In summary, the data reveals a period of growth and strong profitability culminating in 2019, followed by increased cost pressures, volatility in other income components, and reduced net profitability by 2021. Key drivers include fluctuating R&D investment levels, rising SG&A costs, increasing cost of sales in 2021, and episodic amortization charges. Revenue composition suggests moderate diversification with a growing role of anti-CD20 therapeutic revenues. The overall trend highlights challenges in sustaining previous operating margins and net income levels in the most recent fiscal periods.