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West Pharmaceutical Services (WST) FY2018 results: revenue $1.7 billion, up 7.4% on the year

West Pharmaceutical Services Inc. (WST) reported revenue of $1.7 billion for fiscal 2018, the year ended 31 December 2018, up 7.4% on the year before. Net income was $207 million, up 37.3%, and diluted earnings per share $2.74. The figures are the company's own, from the 10-K it filed with the SEC on 28 February 2019.

Revenue
$1.7 billion
+7.4% on the year
FY2011FY2018
Operating margin
14.0%
14.1% a year earlier
FY2011FY2018
Net income
$207 million
+37.3% on the year
FY2011FY2018
Diluted EPS
$2.74
+37.7% on the year
FY2011FY2018

this yearthe year beforeHover a bar for its figure.

The year in brief

Income statement (profit and loss)

$ millionFY2018FY2017FY2016On the yearLast 8 years
Revenue1,7171,5991,509+7.4%
Cost of revenue1,1721,0861,008+7.9%
Gross profit545513501+6.4%
Gross margin31.8%32.1%33.2%
Research and development40.339.136.8+3.1%
Selling, general and administrative263246240+6.9%
Operating income240226195+6.4%
Operating margin14.0%14.1%12.9%
Interest expense8.47.88.1+7.7%
Pre-tax income241222190+8.2%
Income tax41.480.954.4-48.8%
Effective tax rate17.2%36.4%28.7%
Net income207151144+37.3%
Net margin12.0%9.4%9.5%
Diluted EPS$2.74$1.99$1.91+37.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2018FY2017FY2016On the yearLast 8 years
Operating cash flow289263219+9.6%
Capital expenditure105131170-20.0%
Free cash flow18413249.2+38.8%
Free cash flow margin10.7%8.3%3.3%
Cash from investing-101-134-176
Cash from financing-80.7-109-114
Depreciation and amortisation10496.790.7+8.0%
Share-based compensation15.116.119.5-6.2%
Buybacks70.874.452.2-4.8%
Dividends paid42.139.135.8+7.7%
Dividend per share$0.58$0.54$0.50+7.4%
Diluted shares, weighted75m76m75m-0.5%
Shares outstanding at period end74m74m73m+0.3%

Balance sheet

$ millionFY2018FY2017FY2016On the yearLast 8 years
Shareholders' equity1,3961,2801,118+9.1%
Debt196197229-0.5%
Operating lease liabilities0.0n/an/a
Other liabilities386386371+0.2%
Total liabilities and equity1,9791,8631,717+6.2%
Fixed assets822855778-3.9%
Goodwill106108103-1.8%
Intangible assets20.321.723.3-6.5%
Cash and equivalents337236203+43.0%
Receivables288253200+13.8%
Inventory214215199-0.3%
Other assets191174209+9.5%
Total assets1,9791,8631,717+6.2%

10-K for the year ended 31 December 2018, filed 28 February 2019: the filing.