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

(RTTNews) - Swiss drug major Novartis AG (NVS) reported Tuesday that its first-quarter net income was $2.69 billion, higher than last year's $2.29 billion. Basic earnings per share were $1.31, up from $1.09 in the prior year.

The prior year's net income from continuing operations was $2.15 billion or $1.02 per share.

Core net income was $3.68 billion or $1.80 per share, compared to last year's $3.61 billion or $1.71 per share. The prior year's core net income from continuing operations was $3.23 billion or $1.54 per share.

Analysts on average expected the company to report earnings of $1.67 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net sales grew 10 percent to $11.83 billion from the prior year's $10.80 billion. Sales increased 11 percent on a constant currency basis. The Street was looking for sales of $11.43 billion for the quarter.

Looking ahead for fiscal 2024, the company now expects net sales to grow high-single to low double-digit, compared to previously expected mid-single-digit growth. Core operating income is now projected to grow low double-digit to mid-teens from earlier estimate of high single-digit growth.

Further, Novartis said it plans to propose Giovanni Caforio as Chair of the Board of Directors at the AGM in 2025.

The 12-year term of Joerg Reinhardt as Chair of the Board of Directors ends as scheduled in 2025, when he will retire and not be available for re-election at the Annual General Meeting.

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