Novartis: Financial expert evaluates the balance sheet and forecast for the coming year

Novartis: Financial expert evaluates the balance sheet and forecast for the coming year

According to a report by www.boerse.de, Novartis was able to benefit from important box office hits last year and also recorded growth in the final quarter, although it ended weaker than expected. After the spin-off of the Sandoz generics division, the Swiss are now focusing on new types of medicines. In addition to proven revenue generators, company leader Vasant Narasimhan is relying on numerous product candidates that will drive growth in the future. For 2024, Novartis is targeting sales growth in the mid-single-digit percentage range and adjusted operating profit is expected to grow in the high-single-digit percentage range - both calculated at constant exchange rates.

Novartis' total sales in 2023 were $45.4 billion, an increase of eight percent compared to the previous year; adjusted for currency effects, the increase was ten percent. Profit rose by 42 percent in nominal terms and by 62 percent on a currency-adjusted basis to almost $8.6 billion. Shareholders will receive an increased dividend of 3.30 francs per share. This shows positive growth for the company.

However, the cautious targets for the current year could result in the risk of falling market expectations, which is also reflected in a share discount of around four percent on the Swiss stock exchange. Investors are eagerly awaiting Novartis' future outlook and some experts are skeptical about its research pipeline.

Nevertheless, boss Narasimhan emphasizes positive results from ten phase 3 studies on product candidates with great sales potential. Novartis has also reported some promising trial successes in recent months, which could propel the company to further growth. The group's outlook to achieve annual revenue growth of five percent by 2028 continues to demonstrate the company's positive development.