Sanofi Q1 Profit Climbs; Backs FY20 Earnings Growth View

Shares of Sanofi SA (SNYNF) were gaining around 2 percent in Paris trading after the French drug maker reported Friday higher profit in its first quarter with strong sales growth mainly from Dupixent, as well as COVID-19 impact.

Looking ahead for fiscal 2020, Sanofi continues to expect business earnings per share to grow around 5 percent at constant exchange rates. Meanwhile, the company expects the favorable first-quarter COVID-19 impact on sales and business earnings per share to be mainly offset during the second quarter.

Sanofi is at the forefront of fight against COVID-19 and has entered into separate collaborations with BARDA, Translate Bio and GSK to develop novel COVID-19 vaccines.

Sanofi Chief Executive Officer, Paul Hudson, said, “While the duration of the pandemic remains unknown at this point, I am confident Sanofi is well positioned to navigate these challenges and deliver on our commitment to patients.”

For the first quarter, net income attributable to equity holders rose to 1.68 billion euros from 1.14 billion euros last year. Earnings per share climbed 48.4 percent to 1.35 euros from 0.91 euro a year ago.

Business net income increased 15.9 percent from last year to 2.04 billion euros, with roughly half of this growth due to COVID-19 impact. Business earnings per share increased 15.6 percent to 1.63 euros.

Gross profit increased 6.1 percent to 6.50 billion euros, while gross margin ratio decreased 0.6 percentage points to 72.1 percent.

The company’s quarterly net sales were 8.97 billion euros, up 6.9 percent from 8.39 billion euros last year. At CER, sales increased 6.6 percent.

Pharmaceutical sales were up 7.5 percent to 6.76 billion euros, mainly driven by Dupixent and Aubagio, partially offset by the decline in Plavix sales in China. Dupixent sales climbed 130 percent to 776 million euros, unaffected by COVID-19.

Vaccines sales increased 3.7 percent reflecting high base for comparison and decline in the travel category.

In Paris, Sanofi shares were trading at 90.46 euros, up 1.77 percent.

Source: Read Full Article