Sanofi 4Q Net Profit Fell Significantly

By Sonia Amaral Rohter

Sanofi SA (SAN.FR) said on Wednesday that fourth-quarter net profit decreased significantly due in part to a drop in sales and a tax-related charge.

The French drugmaker reported net profit of 129 million euros ($159.7 million) for the quarter, compared with EUR790 million in the same period a year earlier.

Business net income--the company's measure for adjusted income excluding the impact of acquisitions and divestments--was EUR1.33 billion, down from EUR1.61 billion. Sales for the quarter fell 2% to EUR8.69 billion.

A Vara Research consensus forecast had seen fourth-quarter business net income at about EUR1.43 billion and sales of about EUR8.7 billion

Sanofi recorded a charge of EUR631 million in the quarter that it said primarily reflected the consequences of the recent U.S. tax reform.

Global sales of Lantus--Sanofi's flagship diabetes product--dropped 21% at a constant exchange rate, while sales in the U.S. decreased 31.4%.

The company said that, including the anticipated contribution from recently announced acquisitions, it expects 2018 business earnings per share to increase between 2% and 5% at constant exchange rates. Sanofi estimates the currency impact on its 2018 business EPS to be between negative 3% and negative 4%.

Sanofi's board proposed a 2017 dividend of EUR3.03, a 2.4% increase over 2016.

Write to Sonia Amaral Rohter at [e-mail]

(END) Dow Jones Newswires

February 07, 2018 01:58 ET (06:58 GMT)

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