We are a global, science-led biopharmaceutical business. Return to shareholders Revenue from the sale of our medicines
Question:
We are a global, science-led biopharmaceutical business.
Return to shareholders Revenue from the sale of our medicines generates cash flow, which helps us fund business investment. It also enables us to follow our progressive dividend policy and meet our debt service obligations. This involves balancing the interests of our business, financial creditors and shareholders. See the Financial Review from page 70 for more information.
Cash flow and liquidity – 2014 Net cash generated from operating activities was \($7\),058 million in the year ended 31 December 2014, compared with \($7\),400 million in 2013. Reductions in working capital partially offset the lower operating profit and higher tax payments. Working capital movements were principally driven by general increases in trade payables and accruals as a result of our increased R&D and SG&A spend, an increase in the US rebate and chargeback liabilities as described on page 82, an additional year’s Branded Pharmaceutical Fee and a reduction in trade receivables principally in Japan and the US. Non-cash and other movements include \($512\) million relating to fair value adjustments on contingent consideration arising from business combinations. Investment cash outflows of \($7\),125 million (2013: \($3\),112 million) included \($3\),804 million (2013: \($1\),158 million) on completion of business acquisitions, inclusive of BMS’s share of the global diabetes alliance (\($2\),703 million), the rights to Almirall’s respiratory franchise (\($876\) million) and the acquisition of Definiens (\($150\) million). The comparative period of 2013 included payments on the completion of the acquisitions of Pearl Therapeutics, Omthera, Amplimmune and Spirogen . . . Net cash distributions to shareholders were \($3\),242 million (2013: \($2\),979 million), through dividends of \($3\),521 million (2013: \($3\),461 million) partially offset by proceeds from the issue of shares of \($279\) million (2013: \($482\) million)
due to the exercise of share options.
Discussion points
1 What do we learn about cash flow from the information provided by AstraZeneca?
2 Which stakeholders received cash from the company in 2014?
Step by Step Answer:
