News Feature | February 11, 2014

Sanofi Returns To Growth In Q4 2013, Issues Cautious Forecast

By Estel Grace Masangkay

For the first time in four years, Sanofi forecasted its first increase in annual profit. But the company’s issuance of a cautious lookout disappointed analysts and investors, causing a slump in stock. Sanofi said earnings per share aside from other costs will grow from 4 to 7% at constant currencies. Earlier predictions pegged the growth at a higher 8.8% gain. Analysts said the company’s guidance target for the year was too low and disappointing.

The company’s stock fell 2.7% to 69.40 Euros in Paris, the home base of Sanofi. The slump was the lowest level in a year. Sanofi shares have yielded 3.4%, including reinvested dividends in the last 12 months.

Christopher Viehbacher, Chief Executive Officer of Sanofi, said in an interview that it was a respectable growth and there are few who will do better in the industry in 2014. Highlights from Sanofi’s Q4 2013 report included:

  • Sales increased 6.5% in Q4 2013. In 2013, total sales were stable (-0.5%) at €32,951 million
  • CHC sales were up 6.1% in Q4 2013. Sales of Consumer Healthcare exceeded €3 billion in 2013, an increase of +5.2%.
  • Diabetes sales were up 19.0% in Q4 2013. Diabetes recorded strong double digit growth (+18.7%) to €6,568 million in 2013 driven by the performance of Lantus (+20.0% to €5,715 million).
  • Vaccines sales were stable in Q4 2013 as supply improved for Pentacel  and Adacel in the U.S. from mid-October. In 2013, Vaccines sales were stable at €3,716 million as record flu vaccines sales offset U.S. supply constraints on Pentacel and Adacel.

CEO Viehbacher commented, “Sanofi’s growth profile emerged in Q4 2013 with total sales growing 6.5% at CER and growth platforms, which represented 72.9% of sales, increasing 10.0% at CER. Furthermore, new product launches are underway or imminent in most of Sanofi’s core businesses and several high potential R&D projects progressed in 2013, including alirocumab, sarilumab and U300.”