FX.co ★ Sanofi Q1 Profit Drops, Sales Rise; Confirms FY24 Outlook

Sanofi, the French pharmaceutical heavyweight, announced on Thursday that its net income for Q1, which is allocated to equity holders on an IFRS basis, fell by 43.2% to €1.13 billion from €2 billion the previous year.

The company's earnings per share likewise experienced a decline of 43.1%, tumbling from €1.60 per share last year to €0.91 per share this year.

Meanwhile, business net income slumped to €2.22 billion this year from last year's €2.70 billion. In comparison, business earnings per share fell from €2.16 last year to €1.78 this year.

However, Sanofi managed to increase its IFRS net sales by 2.4%, with sales rising to €10.46 billion from €10.22 billion last year. This growth, which amounted to 6.7% at constant exchange rates, was primarily driven by new product launches.

As for the 2024 fiscal outlook, Sanofi is poised to maintain business earnings per share stability, barring the anticipated increase in Effective Tax Rate to 21%. However, it expects a small single-digit decrease at Constant Exchange Rates (CER) due to this higher tax rate.