Novartis has reported net income from continuing operations of $2.68bn for the first quarter (Q1) of 2024, marking a 25% increase from $2.15bn in Q1 2023.

This growth was primarily attributed to a surge in operating income.

Operating income from continuing operations saw a substantial rise to $3.37bn for Q1 2024 from $2.61bn in the previous year’s first quarter, driven by an increase in net sales.

The company’s net sales from continuing operations stood at $11.8bn in Q1 2024, an increase from $10.79bn in Q1 2023.

Novartis experienced a 24% decrease in free cash flow from continuing operations, which amounted to $2bn, compared to $2.68bn in the same period last year because of a previous-year one-timer and timing of payments.

Core operating income showed a 16% increase to $4.5bn, primarily due to the higher net sales while core net income rose by 14% to $3.7bn.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

As of 31 March 2024, Novartis’ net debt grew to $15.8bn, up from $10.2bn at the end of 2023.

This increase was largely due to the $5.2bn annual net dividend payment in March 2023, cash flow for treasury share transactions of $1.1bn, and $1.2bn net cash outflow for mergers and acquisitions, offset partially by the $2bn free cash flow.

Looking ahead, Novartis has raised its full-year 2024 guidance, now expecting net sales to grow in the high-single to low double-digit range and core operating income to increase from low double-digit to mid-teens.

Novartis CEO Vas Narasimhan said: “Novartis continued our strong momentum with both sales growth and core margin expansion in Q1.

“Our performance was broad-based, across all key growth brands and geographies, allowing us to raise guidance for the full year 2024. We continued to advance our pipeline in Q1, with submission-enabling data for Scemblix first-line, Pluvicto pre-taxane and remibrutinib in CSU. The momentum in our business and pipeline gives us continued confidence in our mid- and long-term growth outlook.”

Earlier this month, Novartis signed a licence agreement for Arvinas’ ARV-766, a new treatment for prostate cancer

Pharmaceutical Technology Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Pharmaceutical Technology Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now