FX.co ★ Sanofi Q1 Profit Weak, But Sales Rise; Backs FY24 View; Stock Up

Sanofi, a leading French pharmaceutical company, reported a decrease in profit for the first quarter, even though it experienced an increase in net sales. Despite the weaker profit performance, the company kept its financial outlook for 2024 steady. The company's shares experienced a roughly 4% growth during pre-market trading on the Nasriq and in Paris.

"We've made an impressive start to 2024," commented Paul Hudson, the Chief Executive Officer for the company. "Our focus is on transforming our portfolio of medicines and vaccines, becoming a tech-driven, development-focused biopharmaceutical company set on serving our patients and fostering growth." Hudson highlighted the well-performed sales growth achieved by Dupixent and their new product launches, which resulted in a seven percent increase. He reaffirmed the company's financial guidance for 2024, buoyed by the solid progression in portfolio transformation.

For 2024, Sanofi anticipates the business earnings per share to hold consistent, not including the anticipated elevation in effective tax rate to 21 percent. A low single-digit decline, including the higher expected tax rate, is anticipated.

Sanofi is set to hit a target of around 13 billion euros in Dupixent sales by 2024, already seeing an increase of 24.9% in the first quarter.

In the first quarter, the net income assigned to equity holders, based on IFRS basis, was 1.13 billion euros. This showcases a 43.2% drop from last year's 2 billion euros. Earnings per share also decreased, from 1.60 euros a year ago to 0.91 euro, a fall of 43.1%.

On the other hand, business net income was reported at 2.22 billion euros, a decrease from 2.70 billion euros last year, while business earnings per share were 1.78 euros, a downfall from 2.16 euros from last year.

The first quarter also saw IFRS net sales grow to 10.46 billion euros, a 2.4% increase from the previous year's 10.22 billion euros. This growth of 6.7% was driven by new product launches at constant exchange rates.

Quarterly sales of Dupixent were up by 24.9% to 2.84 billion euros. Leading pharmaceutical launches experienced an upward trajectory of 90.5%, hitting 606 million euros, with Nexviazyme and ALTUVIIIO taking the front seat.

Sales of vaccines saw a 5.6% growth, propelled by Beyfortus, and Consumer Healthcare sales increased by 9%, aided by the acquisition of Qunol in Physical and Mental Wellness and the solid performance of Digestive Wellness.

Sanofi shares in Paris were traded for 91.19 euros, experiencing a 4% increase while pre-market activity on the Nasdaq saw an approximate 4.7% increase, bringing the trade value to $48.78.