uploads/2018/08/syringe-1884784_1280-1.jpg

Novo Nordisk: A Financial Overview after the First Half of 2018

By

Updated

Revenue trends

Novo Nordisk (NVO) reported net revenues of 54.3 billion Danish kroner in the first half of 2018 compared to 57.1 billion Danish kroner in H1 2017. That’s a ~5% YoY (year-over-year) decline.

It reported net sales of 27.4 billion Danish kroner in the second quarter of 2018 compared to 26.9 billion Danish kroner in Q2 2017, a ~4% YoY decline.

In the first half of 2018, it reported gross profit and gross margin of 45.8 billion Danish kroner and 84.3%, respectively. It reported gross profit of 48.4 billion Danish kroner in the first half of 2017.

In the second quarter of 2018, Novo Nordisk reported gross profit and gross margin of 23.1 billion Danish kroner and 84.1%, respectively. That compares to 24.2 billion Danish kroner and 84.6%, respectively, in the second quarter of 2017.

Article continues below advertisement

Earnings trends

Novo Nordisk reported a net profit of 21.1 billion Danish kroner in the first half of 2018, a ~5% YoY growth. In the same period, it reported diluted EPS of 8.66 Danish kroner compared to 8.07 Danish kroner in the first half of 2017.

In the second quarter of 2018, it had net income and diluted EPS of 10.3 billion Danish kroner and 4.26 Danish kroner, respectively. That compares to 10 billion Danish kroner and 4.01 Danish kroner, respectively, in the second quarter of 2017.

Expense trends

Novo Nordisk reported S&D (sales and distribution) costs of 13.5 billion Danish kroner in the first half of 2018. Those costs were flat compared to the first half of 2017.

In the first half of 2018, Novo Nordisk reported R&D (research and development) and administrative expenses of 6.6 billion Danish kroner and 1.7 billion Danish kroner, respectively. That compares to 6.7 billion Danish kroner and 1.8 billion Danish kroner, respectively, in the first half of 2017, reflecting a ~1% and ~3% YoY decline.

In the second quarter of 2018, Novo Nordisk reported S&D, R&D, and administrative expenses of 7.1 billion Danish kroner, 3.3 billion Danish kroner, and 851 million Danish kroner, respectively. That’s a ~5% growth, a ~3% decline, and a ~1% decline, respectively, YoY.

Novo Nordisk’s peers in the biopharmaceuticals market include Sanofi (SNY), Novartis (NVS), and Eli Lilly (LLY). They reported revenues of $9.7 billion, $13.2 billion, and $6.4 billion, respectively, in the second quarter of 2018.

Advertisement

More From Market Realist