- Business EPS Performance: Sanofi reported a Business EPS of €1.79, surpassing the previous year’s €1.53 and exceeding the estimated €1.67.
- Sales Growth: Total sales amounted to €9.90 billion, marking an 11% increase year-over-year, beating the estimated €9.68 billion.
- Strong Product Sales:
- Dupixent’s net sales reached €3.48 billion, exceeding the €3.43 billion estimate, showing a 20.3% sales increase excluding foreign exchange (FX) impacts.
- Beyfortus net sales came in at €284 million, surpassing the estimate of €200 million, with a staggering 54.9% growth excluding FX impacts.
- Aubagio recorded net sales of €65 million, slightly above the estimated €64.3 million, but showed a decline of 37.3% excluding FX impacts.
- Influenza Vaccines reported sales of €73 million, slightly below the €75.2 million estimate, with a 1.4% decrease excluding FX impacts.
- Biopharma Performance: Biopharma sales stood at €9.90 billion, surpassing estimates of €9.65 billion, with sales up 9.7% at constant exchange rates.
- Income Growth:
- Business net income rose to €2.21 billion, a 16% increase year-over-year, exceeding the estimate of €2.05 billion.
- Business operating income was €2.90 billion, a 20% rise from the previous year, outperforming the estimated €2.66 billion.
- Biopharma business operating income increased by 21% to €2.89 billion, above the expected €2.76 billion.
- Improved Margins: Overall gross margin expanded to 78%, up from last year’s 75.7%, and above the 76.7% estimate.
- Biopharma Gross Margin: The biopharma sector’s gross margin improved to 77.7%, higher than both last year’s 75.2% and the anticipated 76.2%.
- R&D Expenses: Research and development expenses increased by 8.3% year-over-year to €1.81 billion, slightly ahead of the €1.72 billion estimate.
- Cash Flow: Free cash flow was recorded at €1.03 billion.
- Fiscal Year Guidance: Sanofi reaffirmed its full-year guidance, expecting mid-to-high single-digit percentage sales growth at constant exchange rates (CER) and a low double-digit percentage growth in business EPS before share buyback.
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A look at Sanofi Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Sanofi, a pharmaceutical company known for its prescription drugs and vaccines, has received a mix of Smart Scores on Smartkarma, indicating varying outlooks across different factors. With a Value score of 3, the company shows potential for growth at a reasonable price. A strong Dividend score of 4 suggests stability in dividend payouts, making it an attractive option for income investors. Moreover, Sanofi‘s Resilience score of 4 highlights its ability to weather economic uncertainties, providing a sense of security for long-term investors. Despite having an average Growth and Momentum score of 3, Sanofi‘s diversified portfolio of cardiovascular, metabolic disorder, central nervous system, and oncology medicines positions it well for sustained growth in the pharmaceutical sector.
Overall, as per the Smartkarma Smart Scores, Sanofi presents a stable investment option with promising dividend potential and resilience to market fluctuations. By leveraging its established presence in manufacturing essential prescription drugs and vaccines, along with its global customer base, Sanofi stands to benefit from a balanced mix of value, income stability, and long-term growth prospects. Investors seeking a reliable pharmaceutical company with a solid track record and a commitment to innovation may find Sanofi‘s outlook appealing in the evolving healthcare industry landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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