Name: Celgene Corp. (NASDAQ:CELG) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Celgene Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net product sales	15,265)	12,973)	11,185)	9,161)	7,564)
Cost of goods sold, excluding amortization of acquired intangible assets	(587)	(461)	(438)	(420)	(386)
Gross profit	14,678)	12,512)	10,747)	8,741)	7,178)
Other revenue	16)	30)	45)	95)	107)
Research and development	(5,673)	(5,915)	(4,470)	(3,697)	(2,431)
Selling, general and administrative	(3,250)	(2,941)	(2,658)	(2,305)	(2,028)
Amortization of acquired intangible assets	(468)	(329)	(459)	(279)	(258)
Acquisition related gains (charges) and restructuring, net	(112)	1,350)	(38)	(300)	(49)
Operating income	5,191)	4,707)	3,167)	2,255)	2,519)
Interest and investment income, net	45)	105)	30)	31)	28)
Interest expense	(741)	(522)	(500)	(311)	(176)
Other income (expense), net	337)	24)	(324)	48)	(44)
Other income and expense	(359)	(393)	(794)	(231)	(192)
Income before income taxes	4,832)	4,314)	2,373)	2,024)	2,327)
Income tax provision	(786)	(1,374)	(373)	(422)	(328)
Net income	4,046)	2,940)	1,999)	1,602)	2,000)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Financial performance from 2014 to 2018 is characterized by consistent top-line growth and a significant expansion in overall profitability, despite substantial increases in operational investments and financing costs.

Revenue and Gross Profitability: Net product sales exhibited a strong and steady upward trajectory, growing from 7,564 million US dollars in 2014 to 15,265 million US dollars by 2018. This growth in revenue was matched by a corresponding increase in gross profit, which rose from 7,178 million US dollars to 14,678 million US dollars over the same period. The cost of goods sold grew at a significantly slower rate than sales, indicating an expansion of the gross profit margin.
Operating Expense Analysis: Research and development (R&D) expenditures increased aggressively, rising from 2,431 million US dollars in 2014 to a peak of 5,915 million US dollars in 2017, before slightly moderating to 5,673 million US dollars in 2018. Selling, general, and administrative expenses also followed a consistent upward trend, increasing from 2,028 million US dollars in 2014 to 3,250 million US dollars in 2018. These trends reflect a heavy investment in product pipeline development and commercial infrastructure.
Operating Income and Efficiency: Operating income demonstrated general growth, increasing from 2,519 million US dollars in 2014 to 5,191 million US dollars in 2018. While there was a slight contraction in 2015, the subsequent years showed marked improvement. This growth was partially influenced by a significant acquisition-related gain of 1,350 million US dollars recorded in 2017.
Non-Operating Items and Financial Costs: Interest expenses rose steadily from 176 million US dollars in 2014 to 741 million US dollars in 2018, suggesting an increase in the company's debt obligations. Other income and expenses remained volatile throughout the period, with a notable negative impact in 2016 followed by a recovery in 2018.
Net Income and Tax Impact: Net income grew from 2,000 million US dollars in 2014 to 4,046 million US dollars in 2018. The trajectory was non-linear, with a dip in 2015 and a sharp increase in 2017 and 2018. The income tax provision showed significant volatility, peaking at 1,374 million US dollars in 2017 before decreasing to 786 million US dollars in 2018.

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