Novartis's Sandoz Sets Out Growth Plan Following Proposed Spinoff
June 08 2023 - 02:03AM
Dow Jones News
By Giulia Petroni
Novartis's off-patent medicines division Sandoz set out its
growth plans as a standalone company following the proposed
spinoff, saying it is well positioned to continue delivering
mid-single digit sales growth.
Ahead of its capital markets day on Thursday, Sandoz said it
foresees mid-single digit net sales growth for the full year as
well as for the 2024-28 period.
The core earnings before interest, taxes, depreciation and
amortization margin is expected at 18%-19% in 2023 and at 24%-26%
in the mid term. An initial decrease from a core Ebitda margin of
21.2% in 2022 is due to inflation and investments required to stand
as a separate company.
Free cash flow is expected to more than double by 2028 from $800
million last year, Sandoz said. This would allow to pay a full-year
dividend of 20%-30% of core net income in 2023 and 30%-40% in the
mid term.
The proposed spinoff of Sandoz is expected to occur in the
second half of the year. Completion is subject to conditions.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
June 08, 2023 01:48 ET (05:48 GMT)
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