Novartis publishes solid financial results for 2023
Stock of the Week
31.01.2024
Novartis AG is one leading Swiss blue-chip companies. Founded on February 29, 1996, the company is headquartered in Basel, Switzerland. It is engaged in the development, manuifacture, and marketing of healthcare products. Novartis is one of the world leaders in oncology pharmaceuticals. It is a globally operating company with 78’000 employees, operating in more than 130 countries and having reached more than 250 million patients around the Globe.
On January 31, 2024, the company reported convincing annual results for the fiscal year 2023, delivering strong full-year performance, 8% net-sales-growth and 11% core-operating-income-growth. Sales growth was mainly driven by a continued strong performance from Entresto (+31% cc), Kesimpta, Kisqali, Pluvicto and Scemblix. Operating income increased by 23% and net income increased by +42%. All growth figures are in the reporting currency USD.
Novartis also reported a big jump in fourth-quarter net profit after it booked a gain from the spinoff of its generics-drugs business Sandoz.
The proposed dividend for the fiscal year 2023 is CHF 3.30 per share, an increase of 3.1%.
For 2024, the company is expecting net sales to grow mid-single digit and core operating income expected to grow high single digit. The CEO Vas Narasimhan also stated that Novartis completed its strategic transformation into a pure-play innovative medicines company and is well on track with its strategic growth plans.
And this is how the bank analysts view the company currently:
The consensus of the bank analysts is "moderate-buy." Out of the 26 analysts covering the share, 10 rates the stock with "Buy,” 14 with "Hold," and 2 analysts recommend selling the stock.
The average expected upside of the stock price for the next six to twelve months is currently ca 4% (closing price on 30/01/2024).
Sources:
Novartis Financial Results Q4 2023 – German
Novartis Net Profit Boosted by Gain From Sandoz Spinoff - WSJ
