Novo Nordisk 9-month Profit Rises

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(RTTNews.com) - Denmark-based healthcare company Novo Nordisk A/S (NVO) reported that its net profit for the first nine months of 2018 increased by 1% to 30.1 billion Danish Kroner, while earnings per share increased by 3% to 12.40 Kroner.

Operating profit decreased by 6% in Danish kroner and increased by 2% in local currencies to 36.5 billion Kroner, impacted by the significant depreciation of the US dollar and related currencies versus the Danish kroner in first half of 2018 compared with the same period in 2017. Adjusting for severance costs related to lay-offs in the third quarter of 2018, operating profit increased by 4% in local currencies.

Novo Nordisk said it has communicated plans to restructure the R&D organisation to accelerate the expansion and diversification of its pipeline and to enable increased investment in transformational biological and technological innovation. The total workforce is expected to be reduced by about 1,300 employees before the end of 2018 and the majority of these reductions have been implemented as of 1 November 2018.

For 2018, sales growth is now expected to be 4-5% and operating profit growth is still expected to be 2-5%, both measured in local currencies. Sales growth reported in Danish kroner is now expected to be 4 percentage points lower than in local currencies while operating profit growth is still expected to be 7 percentage points lower than in local currencies.

Based on the increased expectations for cash flow generation in 2018, the Board of Directors has approved an expansion of the 2018 share repurchase programme with 1.0 billion Kroner to 15 billion Kroner.

Separately, Nordex Group said it has secured an order for a total of 57.6 MW for a cluster of wind farms in Mecklenburg-Western Pomerania, Germany. The "Hoort" wind farm is a joint project by LOSCON GmbH, a wind farm developer, and mea Energieagentur Mecklenburg-Vorpommern GmbH (mea), a wholly owned subsidiary of the municipal utility WEMAG AG. Nordex is to supply 16 N117/3600 turbines, ten to LOSCON GmbH and six to mea. The order also includes Premium Service contracts, each with a period of 15 years and an option to extend by a further five years.

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This article appears in: World Markets , Stocks , Economy

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