Novo Nordisk Q3 2024 $NOVO B

Financial performance:

• Revenue: Net revenue increased by 23% to DKK 204,720 million in the first nine months of 2024 compared to DKK 166,398 million last year. In the third quarter of 2024, revenue amounted to DKK 71,311 million, an increase of 21% compared to Q3 2023.
• Net profit: Net profit increased by 18% to DKK 72,758 million in the first nine months of 2024, compared to DKK 61,720 million last year. In Q3 2024, net profit amounted to DKK 27,301 million, an increase of 21% compared to Q3 2023.
• EBITDA: EBITDA for the first nine months of 2024 was DKK 105,511 million, up 28% compared to DKK 82,229 million last year. In the third quarter, EBITDA increased by 22% to DKK 35,972 million.

Balance sheet overview:

• Total assets: As of September 30, 2024, total assets amounted to DKK 397,441 million compared to DKK 314,486 million at the end of 2023.
• Equity: Equity increased to DKK 120,522 million compared to DKK 106,561 million at the end of 2023.

Profit and loss account:

• Gross profit: Gross profit for the first nine months of 2024 increased by 23% to DKK 173,222 million. For Q3 2024, gross profit amounted to DKK 60,003 million, an increase of 22% compared to Q3 2023.
• Operating result: Operating profit for the first nine months of 2024 increased by 21% to DKK 91,602 million. In Q3 2024, it amounted to DKK 33,822 million, an increase of 26%.

Cash flow overview:

• Operating activities: Net cash flow from operating activities amounted to DKK 108,667 million, an increase of 9% against DKK 99,357 million in the previous year.
• Investment activities: Net cash flow for investments amounted to DKK -37,679 million compared to DKK -29,175 million in the previous year.
• Financing activities: Net cash flow for financing activities amounted to DKK -28,100 million, compared with DKK -53,042 million in the previous year.

Key figures and profitability metrics:

• Gross margin: The gross margin remained almost stable at 84.6% compared to 84.5% in the previous year.
• Operating margin: The operating margin was 44.7%, compared to 45.6% in the previous year.
• Net profit margin: The net profit margin decreased to 35.5%, compared to 37.1% in the previous year.

Segment information:

• Diabetes and Obesity Care: Revenue in the segment amounted to DKK 191,786 million for the first nine months of 2024, compared with DKK 153,806 million in the previous year.
• Rare diseases: Segment revenue amounted to DKK 12,934 million, compared to DKK 12,592 million in the previous year.

Competitive position:

• Market leadership: Novo Nordisk maintains its leadership position in the diabetes and obesity care market, particularly through growth in GLP-1 diabetes and obesity medicines.

Forecasts and management commentary:

• Outlook: The company expects continued growth driven by the diabetes and obesity segments, with a focus on international expansion and overcoming supply shortages.

Risks and opportunities:

• Risks: Include supply chain bottlenecks, regulatory changes and competition.
• Opportunities: Growth potential in obesity care, particularly due to strong demand for WegovyⓇ and expansion into international markets.

Summary of results:

Positive aspects:

• Strong sales increase of 23% in the first nine months of 2024.
• Net profit increase of 18%.
• Robust EBITDA growth of 28%.
• International expansion with sales growth of 21%.
• Successful market entry for WegovyⓇ in obesity care.

Negative aspects:

• Increased R&D costs by 56%.
• Supply bottlenecks affect product availability.
• Decline in net profit margin from 37.1 % to 35.5 %.
• Higher net cash flow requirement for investment activities.
• Challenges in maintaining operating margins.