Shares of Sanofi SA (SNYNF,SNY) were gaining around 2 percent in the morning trading in Paris after the French drug giant on Monday lifted its forecast for fiscal 2017, despite reporting weak profit in its second quarter. Net sales, however, increased as growth in Europe and emerging markets more than offset decline in the U.S.
Sanofi Chief Executive Officer, Olivier Brandicourt, said, “Sanofi Genzyme, Sanofi Pasteur and Emerging Markets were once again major contributors to our performance in the quarter. The continued growth of these businesses, together with disciplined expense management, enabled us to more than offset the headwinds in our Diabetes franchise. Consequently, we feel confident in our full-year outlook and raise our 2017 business EPS guidance.”
Sanofi now expects 2017 business earnings per share to be broadly stable at CER, barring unforeseen major adverse events. The company previously expected business earnings per share to be stable to negative 3 percent at constant exchange rates.
For the second quarter, IFRS net income attributable to equity holders of the company declined 10.4 percent to 1.04 billion euros from last year’s 1.16 billion euros.
IFRS earnings per share fell 8.9 percent to 0.82 euro from 0.90 euro last year.
Business net income was 1.70 billion euros or 1.35 euros per share, compared to last year’s 1.68 billion euros
Operating income declined to 1.38 billion euros from 1.44 billion euros last year. Second-quarter business operating income increased 9.8 percent to 2.30 billion euros.
Net sales for the quarter increased 6.4 percent to 8.66 billion euros from last year’s 8.14 billion euros. Net sales increased 5.5 percent at constant exchange rates, reflecting the change in scope of the CHC and vaccines Global Business Units.
In the quarter, Pharmaceuticals net sales grew 4.1 percent from last year to 7.65 billion euros. Vaccines sales climbed 27.5 percent to 1.02 billion euros.
Second-quarter sales in the U.S. were 2.80 billion euros, a decrease of 1.0 percent or 2.7 percent at constant structure impacted by the decline of Diabetes sales, despite the strong performance of the Multiple Sclerosis franchise, Vaccines as well as the launch of Dupixent.
Emerging Markets sales increased 10.2 percent or 6.6 percent at constant structure driven by robust contribution from China. In Asia, second quarter sales were up 11.7 percent and Latin American sales increased 10.1 percent.
Sales in Europe grew 6.8 percent and in Japan increased 10…