–Novo Nordisk shares rise after the company posts 10% rise in second-quarter operating profit
–The company also raised its full-year sales outlook to a range of 4% to 6% growth on a constant exchange rate basis
–Novo Nordisk’s diabetes and obesity business saw operating profit of DKK11.39 billion for the quarter
Shares in Danish pharmaceutical company Novo Nordisk AS (NOVO-B.KO) rose Friday after it reported a 10% rise in second-quarter operating profit and raised its full-year outlook.
The company made a profit of 13.45 billion Danish kroner ($2.02 billion) for the three months ended June 30, compared with DKK12.2 billion in the year-earlier period, driven by growth in its diabetes-and-obesity business.
Sales for the quarter rose 9.6% to DKK30.04 billion, Novo Nordisk said. On constant exchange rates, sales rose by 6% compared with the year-earlier period. Novo Nordisk said sales were pushed higher by the company’s international operations, where sales on a CER basis grew 12% in the quarter.
Second-quarter net profit fell 7.2% to DKK9.6 billion, after the company saw higher financial expenses, slightly missing a FactSet-compiled consensus estimate of DKK9.62 billion.
The company’s diabetes-and-obesity business saw operating profit for the quarter grow 17% to DKK11.39 billion, boosted by sales of its GLP-1 treatment for type-two diabetes.
For the half year ended June 30, Novo Nordisk’s diabetes-and-obesity business’s operating profit rose to DKK23.22 billion, from DKK19.69 billion in the first half of 2018. Total operating profit for the half rose 12% to DKK27.69 billion.
Chief Executive and President Lars Fruergaard Jorgensen said the company was pleased with its first-half sales growth, which was up 5% on a CER basis.
Following the strong first half, Novo Nordisk said it now expects full-year sales growth in 2019 to be between 4% to 6% on a CER basis, up from a previous range of 2% to 5%. The company also narrowed its operating profit outlook to a range of 4% to 6%, from a previous range of 2% to 6%.
The outlook for full-year free cash flow was also slightly narrowed and the company now expects free cash flow in 2019 in a range of DKK30 billion to DKK34 billion. The previous lower limit for full-year free cash flow was DKK29 billion.
The company declared an interim dividend of DKK3 for each A and B share in the company.
Shares at 0906 GMT were up 1% at DKK337.85.
Dow Jones Newswires
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