Novo Nordisk (NVO) Reports Q3 EPS of DKK3.87
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Novo Nordisk (NYSE: NVO) reported Q3 EPS of DKK3.87, versus DKK3.26 reported last year. Revenue for the quarter came in at DKK27.54 billion, versus DKK26.79 billion reported last year.
Sales increased by 6% in local currencies and by 4% in Danish kroner to DKK 82.2 billion.
- Sales of Tresiba increased by 187% (184% in Danish kroner).
- Sales of Victoza increased by 13% (12% in Danish kroner).
- Sales of Saxenda was DKK 1.0 billion
- Sales in the USA increased by 6% (5% in Danish kroner).
- Sales in International Operations increased by 13% (unchanged in Danish kroner).
- Sales in Region China increased by 11% (5% in Danish kroner).
Operating profit decreased by 1% reported in local currencies and by 3% in Danish kroner to DKK 37.2 billion. Adjusted for the non-recurring income related to the partial divestment of NNIT and the income related to out-licensing of assets for inflammatory disorders, both in 2015, operating profit in local currencies increased by 7%.
Net profit increased by 10% to DKK 29.2 billion. Diluted earnings per share increased by 12% to DKK 11.50. Adjusted for the partial divestment of NNIT, net profit and diluted earnings per share increased by 20% and 22% respectively.
In September, Novo Nordisk announced that Lars Rebien Sorensen, president and chief executive officer, will retire from the company by the end of 2016. Lars Fruergaard Jorgensen, currently executive vice president and head of Corporate Development, will succeed him, effective 1 January 2017.
In September, Novo Nordisk announced plans to reduce the workforce by approximately 1,000 employees of the 42,600 positions in the company¡¦s global organisation.
The financial outlook for 2016 has been updated and the range for sales growth is now expected to be 5¡V6%, whereas growth in adjusted operating profit is now expected to be 5.7%, both measured in local currencies.
During 2016, the market environment in the USA has become significantly more challenging, negatively impacting future pricing for Novo Nordisk's products. Consequently, the preliminary outlook for 2017 indicates low single-digit growth in sales and flat to low single-digit growth in operating profit, both measured in local currencies. In terms of long-term financial targets, Novo Nordisk no longer deems it achievable to reach the operating profit growth target of 10% set in February 2016. As a result, the target has been revised and Novo Nordisk is now aiming for an average operating profit growth of 5%. The two other financial targets remain unchanged.
Lars Rebien Sorensen, president and CEO: ¡§We have reassessed our long-term target for operating profit growth and our R&D strategy in the light of the challenging market environment in the USA. As a result, we are reducing our global cost base and parting company with some of our valued employees. Going forward we are confident that our strong product portfolio with innovative products like Tresiba, Victoza and semaglutide will enable us to deliver on our revised growth targets.¨
For earnings history and earnings-related data on Novo Nordisk (NVO) click here.
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