Press Release: Sanofi Q1: robust 7% sales growth driven by launches, underpins full-year guidance
Sanofi Q1: robust 7% sales growth driven by launches, underpins full-year guidance
Paris, April 25, 2024
Sales growth of 6.7% at CER and business EPS(1) of €1.78
- Dupixent sales up 24.9% to €2,835 million, on target to deliver ~€13bn in 2024
- Pharma launches up 90.5% to €606 million, led by Nexviazyme and ALTUVIIIO
- Vaccines sales up 5.6%, boosted by Beyfortus
- Consumer Healthcare (CHC) up 9.0%, benefiting from the Qunol acquisition in Physical and Mental Wellness and strong Digestive Wellness performance
- R&D expenses grew 11.8%, reflecting strategic shift of resources into development
- SG&A expenses grew 2.9%, less than sales growth
- Business EPS(1) of €1.78, down 17.6% reported and 7.4% at CER
- IFRS EPS of €0.91, down 43.1% reported
R&D transformation advanced further
- Three regulatory approvals: new Dupixent indications in the US and Japan and Beyfortus in Japan
- Positive phase 3 results for rilzabrutinib in immune thrombocytopenia, a rare disease
- Reaffirming increasing pipeline news flow over 2024-2025, including 12 phase 3 data readouts
Corporate Social Responsibility progress
- Sanofi Global Health Unit: making a difference for patients in low- and middle-income countries
- Cancer and work: Sanofi supporting health and wellbeing in the workplace
Business EPS guidance reiterated
- Sanofi expects 2024 business EPS(1) to remain roughly stable excluding the impact of an expected effective tax rate increase to 21% and decrease low single-digit(2) at CER including the higher expected tax rate, barring unforeseen major adverse events. Applying average April 2024 exchange rates, the currency impact on 2024 business EPS is estimated between -5.5% to -6.5%.
Paul Hudson, Chief Executive Officer, commented:
“We are off to an excellent start in 2024, delivering on our strategic priorities and a transformation of our portfolio of medicines and vaccines to become a development-driven, tech-powered biopharma company committed to serving patients and accelerating growth. Continued strong performance by Dupixent and our new launches drove sales growth of seven percent. In parallel, we are delivering on our promise of increased investments in our late-stage pipeline to fully realize its value for patients and Sanofi. We are awaiting regulatory decisions for Dupixent in COPD, a progressive disease with limited effective treatment options. If approved, Dupixent will be the first biologic treatment in COPD. With the robust progress in our portfolio transformation, we reaffirm our financial guidance for 2024.”
| Q1 2024 | Change | Change at CER | |
| IFRS net sales reported | €10,464m | +2.4% | +6.7% |
| IFRS net income reported | €1,133m | -43.2% | _ |
| IFRS EPS reported | €0.91 | -43.1% | _ |
| Free cash flow(3) | €(309)m | -120.1% | _ |
| Business operating income | €2,843m | -14.7% | -4.2% |
| Business net income(1) | €2,219m | -17.8% | -7.4% |
| Business EPS(1) | €1.78 | -17.6% | -7.4% |
Changes in net sales are expressed at constant exchange rates (CER) unless otherwise indicated (definition in Appendix 7). (1) In order to facilitate an understanding of operational performance, Sanofi comments on the business net income statement. Business net income is a non-IFRS financial measure (definition in Appendix 7). The consolidated income statement for Q1 2024 is provided in Appendix 3 and a reconciliation of reported IFRS net income to business net income is set forth in Appendix 4; (2) 2023 business EPS was €8.11; (3) Free cash flow is a non-IFRS financial measure (definition in Appendix 7).
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