By Cecilia Butini

Novartis AG on Wednesday posted lower sales and profit as it took a hit from generic medicines competition and higher restructuring costs, but increased its dividend for 2022.

The Swiss pharma major posted net profit of $1.47 billion, down from $16.31 billion the year prior, when it benefited from the sale of its investment in Roche Holding AG. Sales declined to $12.69 billion from $13.23 billion in the fourth quarter of 2021 due to price erosion and negative impact from generic drug competition, the company said.

Operating income fell to $1.95 billion from $2.56 billion the previous year, due to higher restructuring costs. But core operating income rose to $4.03 billion from $3.82 billion in the fourth quarter of 2021, driven by savings, according to Novartis.

Earnings per share also slipped to $0.69 from $0.75 in 2021.

The company raised its dividend for 2022 to 3.20 Swiss francs ($3.49) from CHF3.10 in 2021.

Looking ahead, the company expects sales excluding Sandoz, which will soon be spun off, to grow low-to-mid single digits, while core operating income excluding Sandoz is expected to grow mid-to-high single digits. Sandoz, Novartis's generic medicines business, is on track to be spun off in the second half of the year.

Write to Cecilia Butini at cecilia.butini@wsj.com

(END) Dow Jones Newswires

February 01, 2023 01:45 ET (06:45 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
Novartis (NYSE:NVS)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024 Click aqui para mais gráficos Novartis.
Novartis (NYSE:NVS)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024 Click aqui para mais gráficos Novartis.