Novo Nordisk increased operating profit by 43% in 2015 to DKK 49.4 billion
Wednesday, February 03, 2016 1:31:07 AM ET
14% local currency operating profit growth adjusted for NNIT divestment
Sales increased by 22% in Danish kroner and by 8% in local currencies to 107.9 billion.
- Sales of modern and new-generation insulin increased by 22% (9% in local currencies).
- Sales of Victoza(R) increased by 34% (18% in local currencies).
- Sales in North America increased by 32% (11% in local currencies).
- Sales in International Operations increased by 19% (15% in local currencies).
- Sales in Region China increased by 22% (4% in local currencies).
Operating profit increased by 43% in Danish kroner and by 21% in local currencies to DKK 49.4 billion. Adjusted for the DKK 2.4 billion non-recurring income related to the partial divestment of NNIT, the operating margin was 43.6% corresponding to an increase in operating profit in local currencies of 14%.
Net profit increased by 32% to DKK 34.9 billion. Diluted earnings per share increased by 34% to DKK 13.52. Adjusted for the partial divestment of NNIT, net profit and diluted earnings per share increased by 22% and 25% respectively.
In 2015, Novo Nordisk achieved its four long-term financial targets established in January 2013 and consequently, the Board of Directors has approved three updated long-term financial targets to guide Novo Nordisks performance. The target for operating profit growth has now been set at 10%, whereas no target for operating margin development has been established, as the operating margin is expected to stay at the current level around 44%. The targets for operating profit after tax to net operating assets and cash to earnings remain unchanged at 125% and 90% respectively.
For 2016, sales growth is expected to be 5-9% measured in local currencies. Growth in operating profit is also expected to be 5-9% measured in local currencies, adjusted for the non-recurring impact of the partial divestment of NNIT and the income related to the out-licensing of assets for inflammatory disorders, both in 2015. Growth reported in DKK, for both items, is expected to be around 1 percentage point lower than the local currency levels.
At the Annual General Meeting on 18 March 2016, the Board of Directors will propose a 28% increase in dividend to DKK 6.40 per share of DKK 0.20 and intends to initiate a new 12-months share repurchase programme of up to DKK 14 billion.
Lars Rebien Sorensen, president and CEO: "We are very pleased with Novo Nordisks performance in 2015 and the achievement of our four long-term financial targets. In 2016 we will continue to focus on the global launch of Tresiba(R) and we are encouraged by the recent SWITCH 2 data, which further demonstrate the ability of Tresiba(R) to reduce the risk of hypoglycaemia in people with type 2 diabetes on basal insulin therapy."
Contacts for further information
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Kasper Veje +45 3075 8519 firstname.lastname@example.org
Company announcement No 8 / 2015
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Source: Novo Nordisk A/S via Globenewswire
Company announcement No 8 / 2016 - http://hugin.info/2013/R/1983185/726759.pdf