Tuesday, January 22, 2013

Novartis Forecast Mid single digit decline in operating earnings for 2013

In its Q4 earnings release, Novartis announced guidance for 2013.  
For 2013, Novartis expects group constant currency net sales in 2013 are expected to be in line with 2012, after absorbing the impact of generic competition, which could amount to as much as USD 3.5 billion. Excluding the impact of generic competition, Group net sales would grow at least in mid-single digits in 2013.  For 2014 and 2015, NVS expects mid single digit EPS growth.
Group core operating income in constant currencies is expected to decline in 2013 in mid-single digits as a result of generic competition and continued investment in an unprecedented number of launches (Bexasero, Signifor, Jetrea, Ilaris and Votubia ). For 2014 and 2015, core operating income is expected to grow ahead of sales in the two subsequent years.
From a divisional perspective for 2013 NVS expectS constant currency sales performance as follows:
  • Pharmaceuticals: low-single digit decline (mid-to-high single digit growth excluding generic competition);
  • Alcon, Sandoz, Vaccines and Diagnostics: mid-to-high single digit increase;
  • Consumer Health: high-single digit increase.

Dividend for 2012 - 

The Novartis Board has proposed a dividend payment of CHF 2.30 per share for 2012, up 2% from CHF 2.25 per share in 2011, representing the 16th consecutive dividend increase since the creation of Novartis in December 1996. Shareholders will vote on this proposal at the 2012 Annual General Meeting (AGM) scheduled for February 22, 2013. The payout ratio as a percentage of net income is expected to decrease from 66 % to 65%.  

Progress in resolving Manufacturing Issues  

Sandoz site in Broomfield, Colorado achieved upgraded compliance status from FDA in fourth quarter  

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