Based in Bagsværd, Denmark, Novo Nordisk, a leading global healthcare company, has reported a substantial increase in sales and operating profit for the financial year 2023, covering the period from 1 January to 31 December 2023.
Sales for the company rose by 31% in Danish Kroner and 36% at constant exchange rates, amounting to DKK 232.3 billion. The operating profit also saw a significant increase of 37% in Danish Kroner, and 44%, reaching DKK 102.6 billion at constant exchange rates (CER).
The North America Operations sales increased by 50% in Danish Kroner and 54% at CER. Additionally, International Operations also saw an 11% increase in sales in Danish Kroner and a 16% increase at CER.
The sales within Diabetes and Obesity care witnessed an impressive surge of 38% in Danish kroner, which is equivalent to DKK 215.1 billion (an increase of 42% at CER). This sales growth was primarily driven by the GLP-1 diabetes sales growth of 48% in Danish Kroner and 52% at CER, along with a huge increase in Obesity care by 147% in Danish Kroner or DKK 41.6 billion (154% at CER). However, the rare disease sales witnessed a decline by 16% in Danish Kroner (15% at CER) due to a decrease in manufacturing output.
In January 2024, the company successfully completed the first phase 3a trial with IcoSema, a fixed-ratio once-weekly combination of basal insulin icodec and semaglutide. Also, a phase 1 trial with oral amycretin within Obesity care was completed.
For the year 2024, the sales growth is expected to range between 18% and 26% at CER. Operating profit growth, too, is anticipated to fluctuate between 21% and 29% at CER. A slight dip is expected for the sales and operating profit growth reported in Danish kroner – expected to be 1 and 2 percentage points lower than at CER.
In the upcoming Annual General Meeting on 21 March 2024, the Board of Directors plans to suggest a final dividend of DKK 6.40 per share for 2023. The total projected dividend for 2023 amounts to DKK 9.40 per share, DKK 3.00 of which was paid as an interim dividend in August 2023. The Board of Directors has also chosen to launch a new share repurchase programme of up to DKK 20 billion.
Lars Fruergaard Jørgensen, the CEO and President of Novo Nordisk, expressed his satisfaction over the strong performance in 2023, emphasizing the fact that over 40 million people have benefited from their innovative diabetes and obesity treatments. He further shared that in 2024, the company will focus on expanding its reach to more patients, making progress on their strategic aspirations, expanding their pipeline, and continuing the significant expansion of production capacity.
Founded in 1923, Novo Nordisk is dedicated to driving change to defeat serious chronic diseases, based on their heritage in diabetes. They aim to achieve this by projecting scientific breakthroughs, broadening the access to their medicines and working towards preventing, and eventually curing diseases. Novo Nordisk currently employs approximately 63,400 people in 80 countries and markets their products in around 170 countries. The company has announced its future important financial dates, including the annual general meeting on 21 March 2024, and subsequent financial results report dates for the year.
