Novartis Q4 Profit Down, Core EPS Beat Market; Lifts Dividend; Sees Growth In FY25

(RTTNews) - Swiss drug major Novartis AG (NVS) reported Friday that its fourth-quarter net income plunged to $2.82 billion from last year's $8.48 billion. Earnings per share fell to $1.42 from last year's $4.14.

The prior year's results included net income of $5.84 billion from discontinued operations of Sandoz Group AG.

On a continuing operations basis, net income grew 7 percent to $2.82 billion from last year's $2.64 billion, and earnings per share increased 10 percent to $1.42 from $1.29 last year.

Core net income was $3.93 billion or $1.98 per share, compared to $3.13 billion or $1.53 per share a year earlier.

The Wall Street analysts on average expected the company to report earnings of $1.78 per share. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 15 percent to $13.15 billion from last year's $11.42 billion. Sales grew 16 percent at constant currency rates. The Street was looking for sales of $12.82 billion for the quarter.

Further, the Novartis Board of Directors proposed a dividend payment of CHF 3.50 per share for 2024, up 6.1 percent from the prior year. Shareholders will vote on this proposal at the AGM on March 7.

Looking ahead, for fiscal 2025, the company projects net sales to grow mid- to high-single digit and core operating income to grow high single to low double-digit.

"With the momentum we are seeing in the business, we expect to continue our strong sales growth with margin expansion in 2025 and we remain on track to deliver on our mid-term guidance," Novartis added.

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