Novartis 4Q Sales $12.69B

By Cecilia Butini

Novartis AG on Wednesday posted lower sales and profit as it took a hit from generic medicines competition and higher restructuring costs, but increased its dividend for 2022.

The Swiss pharma major posted net profit of $1.47 billion, down from $16.31 billion the year prior, when it benefited from the sale of its investment in Roche Holding AG. Sales declined to $12.69 billion from $13.23 billion in the fourth quarter of 2021 due to price erosion and negative impact from generic drug competition, the company said.
Operating income fell to $1.95 billion from $2.56 billion the previous year, due to higher restructuring costs. But core operating income rose to $4.03 billion from $3.82 billion in the fourth quarter of 2021, driven by savings, according to Novartis.
Earnings per share also slipped to $0.69 from $0.75 in 2021.
The company raised its dividend for 2022 to 3.20 Swiss francs ($3.49) from CHF3.10 in 2021.
Looking ahead, the company expects sales excluding Sandoz, which will soon be spun off, to grow low-to-mid single digits, while core operating income excluding Sandoz is expected to grow mid-to-high single digits. Sandoz, Novartis’s generic medicines business, is on track to be spun off in the second half of the year.
Write to Cecilia Butini at [email protected]