Novo Nordisk 4Q Earnings Beat Expectations -- Earnings Review
By Dominic Chopping
Novo Nordisk AS reported results for the fourth quarter on
Wednesday. Here's what we watched:
NET PROFIT: Net profit for the three months to Dec. 31 rose to
9.32 billion Danish kroner ($1.51 billion) from DKK8.72 billion a
year earlier, above the DKK9.08 billion forecast by analysts in a
SALES: Sales slipped 0.9% to DKK32.14 billion against analysts'
expectations of DKK31.85 billion.
WHAT WE WATCHED:
GLUCAGON-LIKE PEPTIDE-1: Novo Nordisk's Ozempic glucagon-like
peptide-1 drugs, or GLP-1, to treat type 2 diabetes had a 27%
increase in sales in 4Q on the year. The fourth quarter had strong
sales growth within diabetes and obesity care, partially offset by
lower sales of insulin, fewer new patients as a result of Covid-19,
higher unemployment in the U.S. and coronavirus pandemic-related
MARGINS: The gross margin was 82.5% in 4Q compared to 83.2% in
the same period last year. The decline of 0.7 percentage points
reflects positive product mix and productivity, countered by a
negative impact from lower realized prices in the U.S. and a
negative currency impact of 1.3 percentage points.
GUIDANCE: The company said it expects full-year 2021 sales
growth of 5%-9% and operating profit growth of 4%-8% on the year in
local currencies. Reported growth in sales and operating profit is
seen around four and six percentage points lower than growth in
local currencies. The board proposed a final dividend of DKK5.85 a
share for 2020 and intends to initiate a new 12-month share
repurchase program of up to DKK17 billion.
Write to Dominic Chopping at firstname.lastname@example.org
(END) Dow Jones Newswires
February 03, 2021 09:17 ET (14:17 GMT)
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