Novartis profit falls due to stockpiling
Novartis AG said Tuesday that its net profit and sales declined in the second quarter with medicine stockpiling triggered by the coronavirus pandemic in the previous quarter largely reversing.
Stocks impacted: Novartis (NOVN)
The Swiss pharmaceutical company’s net profit from continuing operations was $1.87 billion, down 4% at constant currencies compared with the same quarter a year ago. Core operating income rose 6% at constant currencies, reaching $3.7 billion due to lower spending and improved gross margin, the company said.
The drug maker said increased sales for the first quarter due to stockpiling during the coronavirus pandemic were offset in the second quarter. “Despite this, our operations remain stable with record high customer service levels,” Novartis said. “Our product portfolio remains resilient despite Covid-19 negatively impacting sales in April and May”.
Novartis backed 2020 guidance within tightened ranges. Net sales are expected to grow mid-single digit and core operating income expected to grow low double-digit rates at constant currencies.
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