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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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