Novartis Reports Higher Second Quarter Profit, Maintains 2021 Guidance
ZURICH (Reuters) – Novartis increased second-quarter basic net profit by a fifth, beating market expectations, the Swiss drugmaker reported on Wednesday, as it maintained its guidance for 2021.
It generated net income of $ 3.72 billion and increased core operating income 18% to $ 4.35 billion while sales in the three months through June increased 14% to 12 , $ 96 billion, a gain of 9% excluding currency fluctuations.
Analysts polled by Refinitiv on average expected net income of $ 3.46 billion on revenue of $ 12.52 billion.
Novartis said its major drug brands are performing well and its product development pipeline continues to progress.
“As demand begins to return to pre-COVID-19 levels in most geographies and therapeutic areas, we are still seeing a slight impact on parts of our business, for example in oncology, generics and certain geographic areas, ”he said.
“We assume further easing of COVID-19 restrictions
in the second half with a positive impact on business dynamics. “
He reiterated that he expected 2021 sales to grow at a lower than average single-digit percentage rate, with core operating income expected to grow at an average single-digit percentage rate before sales.
(Reporting by Michael Shields, editing by John Revill)