FX.co ★ Novartis Q1 Profit Rises, Tops Estimates; Lifts FY24 View; Proposes Giovanni Caforio As New Chair

Swiss pharmaceutical giant, Novartis AG, announced on Tuesday that its net income for the first quarter amounted to $2.69 billion, an increase from the previous year's $2.29 billion. Basic earnings per share also rose from $1.09 in the previous year to $1.31.

Novartis recorded a net income from ongoing operations of $2.15 billion or $1.02 per share in the earlier year.

The core net income was reported to be $3.68 billion or $1.80 per share, as compared to $3.61 billion or $1.71 per share from the prior year. The company's core net income from ongoing operations in the preceding year was $3.23 billion or $1.54 per share.

According to Thomson Reuters, analysts had anticipated an average company earnings of $1.67 per share, usually excluding any special items.

In terms of net sales, there was a rise of 10 percent from preceding year's $10.80 billion to $11.83 billion for this quarter. The sales saw an increase of 11 percent on a constant currency basis. Analytic predictions were looking forward to sales of $11.43 billion for the quarter.

Looking towards fiscal 2024, Novartis now anticipates net sales to witness high single-digit to low double-digit growth. This prediction is an uptick from their previously projected mid-single-digit growth. The Core operating income is anticipated to experience growth from low double-digits to mid-teens, a revision upwards from the initial projection of high single-digit growth.

Further, Novartis revealed future plans to propose Giovanni Caforio as the Chair of the Board of Directors at the Annual General Meeting (AGM) in 2025.

Joerg Reinhardt's 12-year term as Chair of the Board of Directors is set to end in 2025 as scheduled. Post-retirement, he will not be available for re-election at the Annual General Meeting.