17-01-2008 Novartis results 2007
Novartis achieves record results in 2007 underscoring benefits of strategic healthcare portfolio
- Group results in 2007 set new record as net sales rise 8% (+3% in local currencies) to USD 39.8 billion and net income reaches USD 12.0 billion (+ 66%) with earnings per share up 68% to USD 5.15
- Results include contributions from Medical Nutrition and Gerber until divestments during 2007 and after-tax divestment gains of USD 5.2 billion in net income
- Continuing operations now focused solely on healthcare
- Full-year net sales rise 11% (+6% in local currencies) to USD 38.1 billion on strong contributions particularly from Sandoz and Vaccines and Diagnostics
- Pharmaceuticals in the US adversely impacted by generic competition and Zelnorm suspension
- One-time charges in 2007 of approximately USD 1 billion for Corporate environmental provision and "Forward" initiative to improve competitiveness
- Excluding these one-time charges, operating income rises 2%. Including these charges, but excluding gains from nutrition business divestments, operating income declines 11%
- Net income from continuing operations falls 4% to USD 6.5 billion, while earnings per share decline 3% to USD 2.81
- Launches progressing well for recently approved products - including Exforge, Tekturna/Rasilez, Lucentis, Exjade and Xolair - with 15 approvals in the US and the European Union
- Increasing returns to shareholders while maintaining sound financial foundation
- New CHF 10 billion share repurchase program proposed for shareholder approval following share repurchases totaling CHF 4.7 billion in 2007
- Dividend of CHF 1.60 per share proposed for 2007, up 19% from 2006 and represents dividend payout ratio of 49% of net income from continuing operations
- Novartis expects record results in 2008 from continuing operations on strong growth outlook for Sandoz, Vaccines and Diagnostics, and Consumer Health
- First-half 2008 results in Pharmaceuticals to show ongoing negative impact of lost net sales in the US; new growth phase set to emerge in second half of the year
