2023-07-18 03:27:58 ET
- Novartis press release ( NYSE: NVS ): Q2 Non-GAAP EPS of $1.83 beats by $0.07 .
- Revenue of $13.62 billion (+6.6% Y/Y) beats by $410 million .
- Innovative Medicines net sales was $11.2 billion (+7%, +9% cc), with volume contributing 15 percentage points to growth.
- Sandoz net sales was $2.4 billion (+5%, +8% cc), with volume contributing 9 percentage points to growth.
- Core operating income was $4.7 billion (+9%, +17% cc), mainly driven by higher sales.
- Core operating income margin was 34.3% of net sales.
- Free cash flow amounted to $3.3 billion (-6%), compared with $3.5 billion in the prior year quarter.
- The board initiated up-to $15 billion share buyback to be completed by year-end 2025, following completion of previously announced share buyback in June 2023.
- The board endorses the separation of Sandoz, by way of a 100% spin-off and is planned to occur early in the fourth quarter of 2023.
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Outlook 2023:
- Vas Narasimhan MD, CEO of Novartis, said: "Novartis delivers another strong quarter of sales growth and robust margin expansion, supporting an upgrade to Group guidance for 2023."
- Full-year 2023 Group guidance raised based on strong H1 momentum : Group sales expected to grow high single digit (from mid); Group core operating income expected to grow low double digit (from high single).
- Innovative Medicines sales expected to grow high single digit, Core operating income expected to grow low double digit to mid-teens.
- Novartis ex. Sandoz sales expected to grow high single digit, Core operating income expected to grow low double digit to mid-teens.
- Novartis incl. Sandoz sales expected to grow high single digit, Core operating income expected to grow low double digit.
- Sandoz sales expected to grow mid-single digit, Core operating income expected to decline low double digit, reflecting required stand-up investments to transition Sandoz to a separate company and continued inflationary pressures.
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Novartis beats top and bottom line estimates; raises FY23 outlook and board endorses Sandoz spin-off