Novo Nordisk Trims Guidance on Currency Rates
April 29 2016 - 4:05AM
Dow Jones News
By Dominic Chopping
Denmark's Novo Nordisk A/S (NVO) Friday trimmed its 2016
guidance due to currency exchange rates, but posted
better-than-expected first-quarter net profit on the back of strong
sales of its Victoza and Tresiba diabetes drugs.
"Given the current level of exchange rates versus the Danish
krone, [sales] growth reported in DKK is now expected to be around
3 percentage points lower than the local currency level," the
company said.
Growth in earnings before interest and tax in 2016 is now
expected to be around 4 percentage points below growth in local
currencies, it said.
The company had previously expected both metrics to grow around
1 percentage point below the local currency level.
Net profit for the three months ended Mar. 31 fell to 9.46
billion Danish kroner ($1.45 billion) from DKK9.88 billion the same
period in 2015, after last year's figure was boosted by income from
the initial public offering of a subsidiary. Analysts polled by
FactSet expected a net profit of DKK9.16 billion.
Sales in the first-quarter were DKK27.21 billion compared with
DKK25.20 billion in the year-ago period. Operating profit fell to
DKK12.31 billion from DKK13.86 billion.
The company said that all regions helped boost sales in the
quarter, but the U.S. was the main contributor.
For 2016, sales and operating profit are both still expected to
grow by 5% to 9% measured in local currencies.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
April 29, 2016 03:50 ET (07:50 GMT)
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