Stock Analysis on Net
Stock Analysis on Net

Allergan PLC (NYSE:AGN)

This company has been moved to the archive! The financial data has not been updated since May 7, 2020.

Common-Size Income Statement 

Allergan PLC, common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net revenues 100.00 100.00 100.00 100.00 100.00
Cost of sales, excludes amortization and impairment of acquired intangibles including product rights -15.50 -13.88 -13.60 -12.77 -31.92
Gross profit 84.50% 86.12% 86.40% 87.23% 68.08%
Research and development -11.26 -14.35 -13.17 -17.68 -15.65
Selling and marketing -21.52 -20.59 -22.05 -22.42 -19.34
General and administrative -15.43 -8.05 -9.42 -10.12 -11.72
Amortization -36.40 -41.50 -45.15 -44.41 -36.18
Goodwill impairments -22.08 -18.00 0.00 0.00 0.00
In-process research and development impairments -2.71 -5.10 -9.11 -5.11 -3.39
Asset sales and impairments, net -2.74 -18.10 -24.64 -0.03 -1.80
Operating loss -27.63% -39.57% -37.15% -12.53% -20.00%
Interest income 0.48 0.29 0.42 0.48 0.08
Interest expense -4.87 -5.77 -6.87 -8.89 -7.92
Teva Share Activity 0.00 0.39 -20.51 0.00 0.00
Sale of businesses 0.00 1.16 0.00 0.00 0.00
Debt extinguishment costs as part of the debt tender offer 0.00 0.00 -1.01 0.00 0.00
Debt extinguishment other 0.00 0.10 -0.17 0.00 0.00
Other-than-temporary impairments 0.00 0.00 -0.16 0.00 0.00
Dividend income 0.00 0.00 0.53 0.47 0.00
Naurex recovery 0.00 0.00 0.13 0.00 0.00
Forward sale of Teva shares 0.00 0.00 -0.39 0.00 0.00
Pfizer termination fee, Allergan plc only 0.00 0.00 0.00 1.03 0.00
Bridge loan commitment fee 0.00 0.00 0.00 0.00 -1.76
Interest rate lock 0.00 0.00 0.00 0.00 0.21
Other 0.21 -0.02 0.03 0.01 0.00
Other income (expense), net 0.20% 1.63% -21.56% 1.50% -1.55%
Loss before income taxes and noncontrolling interest -31.82% -43.43% -65.16% -19.44% -29.40%
(Provision) benefit for income taxes -0.91 11.22 41.85 13.02 10.36
Net loss from continuing operations, net of tax -32.73% -32.22% -23.31% -6.42% -19.03%
Income (loss) from discontinued operations, net of tax 0.00 0.00 -2.53 109.22 45.04
Net income (loss) -32.73% -32.22% -25.84% 102.81% 26.01%
Income attributable to noncontrolling interest -0.04 -0.06 -0.04 -0.04 -0.03
Net income (loss) attributable to shareholders -32.76% -32.28% -25.88% 102.76% 25.98%
Dividends on preferred shares 0.00 -0.29 -1.75 -1.91 -1.54
Net income (loss) attributable to ordinary shareholders -32.76% -32.58% -27.63% 100.85% 24.44%

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).

Net Revenues and Cost of Sales
Net revenues remained constant at 100% across all periods. The cost of sales, excluding amortization and impairment, showed a sharp decrease from -31.92% in 2015 to a range between -12.77% and -15.5% from 2016 to 2019, indicating improved cost efficiency in production or procurement after 2015.
Gross Profit
Gross profit increased significantly from 68.08% in 2015 to above 84% from 2016 onward, peaking at 87.23% in 2016. This trend aligns with the reduced cost of sales, reflecting stronger underlying profitability before operating expenses.
Operating Expenses
Research and development expenses fluctuated between -15.65% and -11.26%, with a general downward trend signaling reduced investment relative to net revenues by 2019. Selling and marketing expenses remained relatively stable, around -19% to -22%. General and administrative expenses showed variability, dropping from -11.72% in 2015 to -8.05% in 2018 but sharply increasing to -15.43% in 2019, suggesting a notable rise in administrative costs at the end of the period.
Amortization and Impairments
Amortization costs were substantial and consistently high, ranging from -36.18% to -45.15% over the years, though trending slightly downward by 2019. Goodwill impairments appeared only in 2018 and 2019, with significant negative impacts of -18% and -22.08%, respectively. Impairments on in-process research and development decreased from -9.11% in 2017 to -2.71% by 2019. Net asset sales and impairments were highly volatile, with a notable large negative impact in 2017 (-24.64%) and 2018 (-18.1%), substantially reducing in 2019 (-2.74%).
Operating Loss and Other Income/Expenses
Operating loss fluctuated considerably, with the highest loss occurring in 2018 at -39.57%, and an improvement to -27.63% by 2019. Interest income was low but positive, ranging between 0.08% and 0.48%. Interest expense steadily decreased from -7.92% in 2015 to -4.87% in 2019, suggesting either reduced debt levels or more favorable financing costs. Other income and expenses showed high volatility, with a sharp negative in 2017 (-21.56%) but positive or near-zero amounts in other years.
Profitability and Taxation
Loss before income taxes showed a highly variable pattern, worsening to -65.16% in 2017 and then improving afterwards but remaining negative. The tax provision displayed irregular behavior, with a large benefit of 41.85% in 2017 and turning slightly negative by 2019 (-0.91%). Net loss from continuing operations worsened markedly from -6.42% in 2016 to above -30% in 2018 and 2019. Net income figures reflected significant volatility, with positive peaks in 2015 and 2016 (above 26% and 102%, respectively) turning to substantial losses during 2017 to 2019, consistent with operational and impairment challenges.
Other Items
Income attributable to noncontrolling interest remained minimal and negative throughout, indicating a small detracting effect. Dividends on preferred shares decreased from around -1.9% in 2016 to -0.29% by 2018, with no data reported afterward, possibly reflecting structural changes in capital. Unique items such as goodwill impairments, asset sales impacts, and certain one-time fees contributed significantly to the fluctuations in expense and loss figures.
Summary
The data portrays a company experiencing a period of marked volatility between 2015 and 2019. Initial improvements in gross profitability were undermined by high amortization and impairment charges, leading to substantial operating losses from 2017 onward. General and administrative costs rose sharply in the last reported year, contributing further pressure on profitability. While interest expenses decreased, gains were insufficient to offset operating and impairment costs. Overall, the trend points to operational challenges and significant non-cash charges affecting financial outcomes, with persistent net losses in the latter years of the period analyzed.