Novo Nordisk Sets New Long-Term Targets as Profit Rises

By Christina Zander

Denmark's Novo Nordisk A/S (NVO) on Wednesday announced new long-term financial targets for the company as it reported a rising profit for the fourth quarter.

Net profit for the three months ended Dec. 31 rose to 8.26 billion Danish kroner ($1.21 billion) from DKK6.53 billion the same period in 2014. Analysts polled by FactSet expected a net profit of DKK8.53 billion.

Novo Nordisk, the world's largest insulin maker by volume, said that as the company reached several of its long-term financial targets during 2015, the board has now approved three updated targets to guide its performance.

The target for operating profit growth has now been set at 10%. No target was given for operating margin development as the operating margin is expected to stay at the current level around 44%. The targets for operating profit after tax to net operating assets and cash to earnings remain unchanged at 125% and 90% respectively.

For 2016, sales growth and growth in operating profit are both expected to be 5% to 9% measured in local currencies. Growth reported in local currency for both items is expected to be around 1 percentage point lower than the local currency levels.

Sales in the fourth-quarter were DKK28.88 billion, compared with DKK24.59 billion in the year-ago period. Operating profit rose to DKK11.13 billion from DKK9.16 billion.

The board proposed a dividend of DKK6.40 a share, up from DKK5 in 2014.

Shares closed at DKK377.70 Tuesday

Write to Christina Zander at [e-mail]

(END) Dow Jones Newswires

February 03, 2016 02:05 ET (07:05 GMT)

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