Novartis increases net profit fivefold in the final quarter - financial experts impressed

Novartis increases net profit fivefold in the final quarter - financial experts impressed

According to a report by www.finanzen.net, Novartis more than quintupled its net profit in the fourth quarter, benefiting from a one-time gain from the spin-off of its Sandoz generics division. Shareholders are to receive a dividend of 3.30 Swiss francs, which is 0.10 francs more than last year. Net income for the fourth quarter was $8.48 billion, compared to $1.47 billion in the same period last year. This includes a non-cash gain of $5.9 billion from the distribution of Sandoz shares to Novartis shareholders.

In continuing operations, net profit doubled to $2.64 billion. Adjusted operating profit rose almost 5 percent to $3.82 billion, while sales rose 8 percent to $11.42 billion. Strong sales growth for the heart drug Entresto and the psoriasis treatment Cosentyx contributed to the success. In the current financial year, Novartis aims to increase currency-adjusted operating profit by a high single-digit percentage and sales by a mid-single-digit percentage.

Despite these positive figures, Novartis shares ultimately fell 3.45 percent to 89.40 francs in trading on SIX. This reaction could be due to investors who may have had higher expectations for the earnings and sales figures. It is important to note that the market often reacts to expectations and not just actual numbers.

However, Novartis' strong numbers could boost confidence in the company and have a long-term positive impact on the pharmaceutical market. The development of successful drugs such as Entresto and Cosentyx demonstrates Novartis' ability to offer innovative treatments, which continues to make the company attractive to investors and consumers.