Company: AZN
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004737
Chunk: 15

Company: ASTRAZENECA PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 15
---
ting the overall impact on profits

Variations in Gross Margin performance between periods can continue to be expected due to product seasonality, foreign exchange fluctuations, and other effects.

R&D expense

The change in R&D expense (Reported and Core) in the period was impacted by:

- Positive data read-outs for high value pipeline opportunities that have ungated late-stage trials

- Investment in platforms, new technology and capabilities to enhance R&D capabilities

- Addition of R&D projects following completion of previously announced business development activity

SG&A expense

- The change in SG&A expense (Reported and Core) in the period was driven primarily by market development activities for launches and to support continued growth in existing brands

Other operating income and expense

Other operating income in Q1 2025 consisted primarily of royalties and an upfront fee on a divestment.

Net finance expense

Core Net finance expense decreased 12% (11% at CER) mainly driven by an adjustment of interest on tax, due to a reduction of tax liabilities relating to prior periods (see below).

Taxation

The effective Reported tax rate for the three months to 31 March 2025 was 14% (Q1 2024: 22%) and the effective Core Tax rate was 16% (Q1 2024: 21%).

The Q1 2025 tax rate benefited from a reduction of tax liabilities arising from updates to estimates of prior period tax liabilities following settlements with tax authorities.

The cash tax paid for the quarter ended 31 March 2025 was $363m (Q1 2024: $430m), representing 11% of Reported Profit before tax (Q1 2024: 15%).

Cash Flow

Table 10: Cash Flow summary

|                                                               | Q1 2025 
      $m | Q1 2024 
      $m | Change$m |
| Reported Operating profit                                     |   3,674 |   3,115 |      559 |
| Depreciation, amortisation and impairment                     |   1,284 |   1,255 |       29 |
| Movement in working capital and short-term provisions         |    -426 |    -455 |       29 |
| Gains on disposal of intangible assets                        |     -66 |       - |      -66 |
| Fair value movements on contingent consideration arising from 
 business combinations                                         |       1 |      16 |      -15 |
| Non-cash and other movements