Calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to shareholders1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | -32.76% | = | 100 | × | (5,271,000) | ÷ | 16,088,900) |
| Dec 31, 2018 | -32.28% | = | 100 | × | (5,096,400) | ÷ | 15,787,400) |
| Dec 31, 2017 | -25.88% | = | 100 | × | (4,125,500) | ÷ | 15,940,700) |
| Dec 31, 2016 | 102.76% | = | 100 | × | 14,973,400) | ÷ | 14,570,600) |
| Dec 31, 2015 | 25.98% | = | 100 | × | 3,915,200) | ÷ | 15,071,000) |
| Dec 31, 2014 | -12.48% | = | 100 | × | (1,630,500) | ÷ | 13,062,300) |
| Dec 31, 2013 | -8.65% | = | 100 | × | (750,400) | ÷ | 8,677,600) |
| Dec 31, 2012 | 1.64% | = | 100 | × | 97,300) | ÷ | 5,914,900) |
| Dec 31, 2011 | 5.69% | = | 100 | × | 260,900) | ÷ | 4,584,400) |
| Dec 31, 2010 | 5.17% | = | 100 | × | 184,400) | ÷ | 3,566,900) |
| Dec 31, 2009 | 7.95% | = | 100 | × | 222,000) | ÷ | 2,793,000) |
| Dec 31, 2008 | 9.40% | = | 100 | × | 238,379) | ÷ | 2,535,501) |
| Dec 31, 2007 | 5.65% | = | 100 | × | 141,030) | ÷ | 2,496,651) |
| Dec 31, 2006 | -22.48% | = | 100 | × | (445,005) | ÷ | 1,979,244) |
| Dec 31, 2005 | 8.40% | = | 100 | × | 138,233) | ÷ | 1,646,203) |
Based on: 10-K (reporting date: 2019-12-31), 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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The net profit margin exhibits extreme volatility over the analyzed period, characterized by alternating cycles of moderate profitability, significant losses, and anomalous spikes in income that deviate from operational revenue trends.
- Early Period Stability and Volatility (2005–2012)
- During this timeframe, net profit margins generally remained in the single digits, peaking at 9.40% in 2008 and reaching a low of 1.64% in 2012. A notable outlier occurred in 2006, where the margin dropped to -22.48% despite an increase in net revenues, indicating a period of significant non-operating expenses or losses.
- Expansion and Margin Compression (2013–2014)
- A period of rapid revenue growth is observed, with net revenues increasing from approximately 8.68 billion in 2013 to 13.06 billion in 2014. However, this growth coincided with a decline in profitability, as net profit margins turned negative, reaching -12.48% by the end of 2014.
- Extraordinary Profitability Peaks (2015–2016)
- A sharp reversal in profitability occurred in 2015, with the margin rising to 25.98%. This trend culminated in 2016 with an anomalous net profit margin of 102.76%, where net income attributable to shareholders exceeded total net revenues. This pattern indicates the realization of significant non-operational gains rather than organic growth in core business profitability.
- Sustained Negative Performance (2017–2019)
- The final three years of the period show a consistent and severe decline in profitability. Despite net revenues remaining stable between 15.79 billion and 16.09 billion, the net profit margin plummeted to -25.88% in 2017 and further deteriorated to -32.76% by 2019. The persistent net losses of over 4 billion annually during this phase highlight a significant decoupling between revenue generation and bottom-line profitability.
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Comparison to Competitors
| Allergan PLC | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | -32.76% | 23.69% | 35.32% | 13.15% | 16.80% | 37.27% | 24.35% | 18.42% | 21.01% | 31.45% | 26.91% | 14.47% | 28.27% |
| Dec 31, 2018 | -32.28% | 17.36% | 37.25% | 21.81% | 13.33% | 13.16% | 25.16% | 18.75% | 14.71% | 20.79% | 36.42% | 12.06% | 68.80% |
| Dec 31, 2017 | -25.88% | 18.82% | 9.08% | 4.85% | 13.60% | -0.89% | 18.03% | 1.70% | 5.97% | 40.55% | 20.41% | 10.64% | 10.59% |
| Dec 31, 2016 | 102.76% | 23.22% | 35.27% | 22.94% | 15.13% | 12.90% | 45.07% | 23.01% | 9.85% | 13.66% | 18.42% | 11.06% | -6.58% |
| Dec 31, 2015 | 25.98% | 22.50% | 33.13% | 9.45% | 16.33% | 12.07% | 56.32% | 21.99% | 11.25% | 14.25% | 15.50% | 11.64% | -53.89% |
| Dec 31, 2014 | -12.48% | 8.89% | 26.69% | 12.62% | 13.05% | 12.19% | 49.44% | 21.96% | 28.22% | 18.42% | 12.34% | 11.22% | -127.25% |
| Dec 31, 2013 | -8.65% | 21.97% | 27.93% | 15.64% | 14.10% | 20.27% | 28.46% | 19.40% | 10.00% | 42.65% | 20.16% | 9.73% | -36.72% |
| Dec 31, 2012 | 1.64% | 28.70% | 26.11% | 11.12% | 13.10% | 18.09% | 27.57% | 16.14% | 13.05% | 24.70% | 54.43% | 9.42% | -7.01% |
| Dec 31, 2011 | 5.69% | — | 24.08% | 17.46% | 13.50% | 17.90% | 34.60% | 14.87% | 13.05% | 14.84% | -49.74% | 11.34% | 2.10% |
| Dec 31, 2010 | 5.17% | — | 31.56% | 15.92% | 13.58% | 21.97% | 39.26% | 21.65% | 1.87% | 12.18% | -22.76% | 9.60% | -526.35% |
| Dec 31, 2009 | 7.95% | — | 32.09% | 56.42% | 10.30% | 19.82% | 40.74% | 19.82% | 47.04% | 17.27% | -17.88% | 8.41% | -630.27% |
| Dec 31, 2008 | 9.40% | — | 28.57% | 25.47% | 10.38% | -10.17% | 39.55% | 20.31% | 32.74% | 16.78% | -34.69% | 9.47% | -262.02% |
| Dec 31, 2007 | 5.65% | — | 22.12% | 11.19% | 12.42% | 15.85% | 43.27% | 17.31% | 13.54% | 16.82% | -84.46% | 7.81% | -196.61% |
| Dec 31, 2006 | -22.48% | — | 21.29% | 8.85% | 11.69% | 16.97% | -45.98% | 20.73% | 19.59% | 39.98% | -161.30% | 4.46% | -95.63% |
| Dec 31, 2005 | 8.40% | — | 30.56% | 15.62% | 11.24% | 13.52% | 44.99% | 20.61% | 21.04% | 15.76% | -144.19% | 8.48% | -126.43% |
Based on: 10-K (reporting date: 2019-12-31), 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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Allergan PLC, net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Allergan PLC | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2019 | -32.76% | 23.22% |
| Dec 31, 2018 | -32.28% | 19.82% |
| Dec 31, 2017 | -25.88% | 13.06% |
| Dec 31, 2016 | 102.76% | 20.78% |
| Dec 31, 2015 | 25.98% | 21.17% |
| Dec 31, 2014 | -12.48% | 21.24% |
| Dec 31, 2013 | -8.65% | 21.99% |
| Dec 31, 2012 | 1.64% | 18.53% |
| Dec 31, 2011 | 5.69% | 15.70% |
| Dec 31, 2010 | 5.17% | 15.16% |
| Dec 31, 2009 | 7.95% | 25.73% |
| Dec 31, 2008 | 9.40% | 18.17% |
| Dec 31, 2007 | 5.65% | 15.90% |
| Dec 31, 2006 | -22.48% | 22.24% |
| Dec 31, 2005 | 8.40% | 18.33% |
Based on: 10-K (reporting date: 2019-12-31), 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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
| Allergan PLC | Health Care | |
|---|---|---|
| Dec 31, 2019 | -32.76% | 14.56% |
| Dec 31, 2018 | -32.28% | 12.61% |
| Dec 31, 2017 | -25.88% | 9.26% |
| Dec 31, 2016 | 102.76% | 12.80% |
| Dec 31, 2015 | 25.98% | 13.94% |
| Dec 31, 2014 | -12.48% | 14.40% |
| Dec 31, 2013 | -8.65% | 15.04% |
| Dec 31, 2012 | 1.64% | 13.92% |
| Dec 31, 2011 | 5.69% | 12.06% |
| Dec 31, 2010 | 5.17% | 11.90% |
| Dec 31, 2009 | 7.95% | 17.77% |
| Dec 31, 2008 | 9.40% | 13.00% |
| Dec 31, 2007 | 5.65% | 12.52% |
| Dec 31, 2006 | -22.48% | 15.30% |
| Dec 31, 2005 | 8.40% | 14.61% |
Based on: 10-K (reporting date: 2019-12-31), 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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).