Novo Nordisk Sets New Long-Term Targets as Profit Rises
February 03 2016 - 02:20AM
Dow Jones News
By Christina Zander
Denmark's Novo Nordisk A/S (NVO) on Wednesday announced new
long-term financial targets for the company as it reported a rising
profit for the fourth quarter.
Net profit for the three months ended Dec. 31 rose to 8.26
billion Danish kroner ($1.21 billion) from DKK6.53 billion the same
period in 2014. Analysts polled by FactSet expected a net profit of
DKK8.53 billion.
Novo Nordisk, the world's largest insulin maker by volume, said
that as the company reached several of its long-term financial
targets during 2015, the board has now approved three updated
targets to guide its performance.
The target for operating profit growth has now been set at 10%.
No target was given for operating margin development as the
operating margin is expected to stay at the current level around
44%. The targets for operating profit after tax to net operating
assets and cash to earnings remain unchanged at 125% and 90%
respectively.
For 2016, sales growth and growth in operating profit are both
expected to be 5% to 9% measured in local currencies. Growth
reported in local currency for both items is expected to be around
1 percentage point lower than the local currency levels.
Sales in the fourth-quarter were DKK28.88 billion, compared with
DKK24.59 billion in the year-ago period. Operating profit rose to
DKK11.13 billion from DKK9.16 billion.
The board proposed a dividend of DKK6.40 a share, up from DKK5
in 2014.
Shares closed at DKK377.70 Tuesday
Write to Christina Zander at christina.zander@wsj.com
(END) Dow Jones Newswires
February 03, 2016 02:05 ET (07:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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