Novartis's Q3 net profit increase has resulted in a raised annual sales outlook

October 29, 2024 04:46 AM PDT | By Team Kalkine Media

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Novartis's Q3 net profit increase has resulted in a raised annual sales outlook — Image source: Shutterstock

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Highlights

Increased Annual Guidance: Novartis AG revised its annual sales forecast, anticipating growth in low double-digits, reflecting strong performance in the third quarter.

Strong Q3 Financial Results: The company reported net earnings of $3.185 billion, marking a significant increase from the previous year.

Key Product Success: Sales of the Entresto and Cosentyx brands surged by 26% and 27%, respectively, contributing to the overall sales growth.

Novartis AG (NYSE:NVS), a prominent Swiss pharmaceutical company, has revised its annual sales guidance upward following a notable increase in net profit during the third quarter. CEO Vas Narasimhan highlighted the company's strong operational performance, reporting a 10% rise in sales and a 20% increase in core operating income. The positive results stem from contributions across all key growth drivers, reinforcing confidence in both the business momentum and the product pipeline.

For the full year, Novartis now anticipates core operating income growth in the high teens, an upgrade from the previous outlook of mid to high teens. The annual sales projection has shifted to low double-digit growth, replacing the earlier expectation of high single to low double-digit growth. This positive adjustment reflects the company’s strong market position and performance.

In the third quarter, Novartis recorded net earnings of $3.185 billion, translating to $1.58 per share, a marked increase from $1.763 billion, or $0.85 per share, during the same period the previous year. Sales also improved significantly, reaching $12.823 billion compared to $11.782 billion in the prior year.

The company’s success can be attributed to the strong performance of its key products. Sales for the Entresto brand reached $1.865 billion, up 26% from the previous year, while the Cosentyx brand saw a 27% increase in sales, totaling $1.693 billion. These figures underscore Novartis's capacity to adapt to market demands and maintain a competitive edge in the pharmaceutical sector.

With this robust performance, Novartis remains well-positioned to advance its strategic initiatives and continue its growth trajectory in the coming years.

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