Sanofi Shares Tumble After Warning of Profit Hit From Investment, Taxes
27 Octubre 2023 - 3:43AM
Noticias Dow Jones
By Adria Calatayud
Shares of Sanofi fell sharply after the company warned it
expects business earnings for next year to be hit by its plans to
boost investment in research and development and changes in global
tax regulations.
At 0809 GMT on Friday, shares in the French pharmaceutical giant
were down 16% at EUR84.83.
Sanofi said it expects business earnings per share--one of its
preferred metrics, which strips out exceptional items--to be
roughly flat in 2024 compared with this year when excluding the
impact of an expected tax-rate change. Including the expected hit
from the tax changes, business EPS is expected to decline by low
single digits, it said.
The company expects its effective tax rate to rise to 21% in
2024 from 19% this year.
In 2025, the company expects business EPS to rebound strongly,
helped by sales growth and a cost-cutting plan that it expects to
achieve 2 billion euros ($2.11 billion) in savings from 2024 to the
end of the following year.
"We believe the preliminary guidance for 2024 and 2025 business
EPS will be the primary focus for investors today," Barclays
analysts wrote in a note to clients.
The new forecasts were issued as Sanofi outlined a plan to
separate its consumer-healthcare business from its pharma
operations, and reported results for the third quarter that
narrowly missed consensus estimates.
Net sales for the third quarter fell to EUR11.96 billion from
EUR12.48 billion in the same period last year, while business net
profit fell 11% to EUR3.20 billion. The company attributed the
earnings fall to the loss of exclusivity of its Aubagio drug for
relapsing multiple sclerosis.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 27, 2023 04:28 ET (08:28 GMT)
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