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Jun 30, 2023

Teva Q2 2023 Earnings Report

Teva's financial performance showed revenue growth and strategic progress.

Key Takeaways

Teva Pharmaceutical Industries reported a solid performance for Q2 2023, with revenues of $3.9 billion, a 4% increase in local currency terms, and a rise in non-GAAP gross margin. The company slightly increased its revenue guidance midpoint for the year and reaffirmed other guidance items, driven by growth from AUSTEDO and the launch of UZEDY.

Revenues reached $3.9 billion, reflecting a 4% increase compared to Q2 2022 in local currency terms.

Non-GAAP gross margin improved by 3.1 percentage points compared to Q1 2023.

AUSTEDO experienced strong growth, contributing to the overall revenue increase.

Successful launch of UZEDY, adding to the innovative product portfolio.

Total Revenue
$3.88B
Previous year: $3.79B
+2.4%
EPS
$0.56
Previous year: $0.68
-17.6%
Gross Profit
$1.8B
Previous year: $1.79B
+0.2%
Cash and Equivalents
$2.67B
Previous year: $2.06B
+29.7%
Free Cash Flow
$632M
Previous year: $301M
+110.0%
Total Assets
$43.1B
Previous year: $45.9B
-6.2%

Teva

Teva

Teva Revenue by Segment

Teva Revenue by Geographic Location

Forward Guidance

Teva revised its 2023 revenue outlook to $15.0-$15.4 billion, with all other key components reaffirmed.

Positive Outlook

  • Revenues: $15.0 – $15.4 billion
  • Operating Income: $4.0 – $4.4 billion
  • Adjusted EBITDA: $4.5 - $4.9 billion
  • Diluted EPS: $2.25 – $2.55
  • Free Cash Flow: $1.7 – $2.1 billion

Challenges Ahead

  • Finance Expenses: ~$1,000 million
  • Tax Rate: 14% – 17%
  • CAPEX: $0.5 billion
  • Foreign Exchange: Volatile swings in FX can negatively impact revenue and income
  • COPAXONE revenues are expected to be around $500 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income