Novartis 1Q Profit Declined; Sales Rose Slightly -- Update
April 27 2021 - 2:04AM
Dow Jones News
By Cecilia Butini
--Novartis's net profit for the first quarter fell, but sales
climbed slightly
--The company's generics division Sandoz experienced sales
erosion, exacerbated by a weak cough and cold season
--The coronavirus pandemic affected demand in a number of
areas
Novartis AG said Tuesday that profit declined and sales rose
slightly in the first quarter.
The Swiss pharmaceutical major posted net profit of $2.06
billion, down from $2.17 billion a year earlier. Sales grew to
$12.41 billion from $12.3 billion.
A consensus forecast provided by FactSet had expected net profit
at $3.44 billion and sales at $12.52 billion.
Core operating income, or income excluding extraordinary items,
was $3.96 billion compared with $4.18 billion a year earlier, the
company said.
The company said the decline in core operating income was mainly
due to a decline at Sandoz, its generics division. Sales at the
division declined 13% at constant currencies during the quarter,
Novartis said. Sandoz's decline was exacerbated by a weak cough and
cold season, which in turn was partly offset by growth in
biopharmaceuticals, the company said.
The coronavirus pandemic hurt demand, particularly in
dermatology, ophtalmology, breast cancer drugs, Sandoz retail and
anti-infectives, Novartis said.
The company backed its earlier outlook for 2021, saying it still
expects net sales growth in the low-to-mid single digits, and core
operating income to grow in the mid-single digits. The guidance
assumes a return to normal global healthcare systems--including
prescription dynamics--by mid-2021, Novartis said.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
April 27, 2021 01:49 ET (05:49 GMT)
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