PARIS (dpa-AFX) - French drug maker Sanofi (SNYNF.PK, SNY) Thursday reported a sharp increase in second-quarter profit, reflecting mainly lower impairment charges. Results were also driven by sales in the Group's growth platforms, with performance in emerging markets, Genzyme sales and rise in Diabetes sales. The company also lifted its business earnings per share growth outlook for full year 2014.
For the second quarter, net income attributable to equity holders climbed 73.4 percent to 777 million euros or about $1.04 billion from 448 million euros last year, with consolidated earnings per share rising year-over-year to 0.59 euros from 0.34 euros.
Business net income rose 3.9 percent to 1.54 billion euros, and was up 13 percent at constant exchange rates or CER. Business earnings per share were 1.17 euros, up 4.5 percent and up 13.4 percent on a reported basis and at constant exchange rates, respectively.
Impairment of intangible assets were 71 million euros for the recent quarter, while the company posted 430 million euros last year.
Operating income was 1.25 billion euros, higher than 684 million euros in the preceding year.
Sanofi's sales grew by 0.9 percent on a reported basis to 8.08 billion euros from 8.00 billion euros last year. At CER, Group sales grew 6.4 percent to 8.08 billion euros, driven by Genzyme and Diabetes.
Exchange rate movements had an adverse effect of 5.5 percentage points, mainly reflecting the strength of the euro compared to other currencies, particularly the U.S. Dollar.
In the second quarter, sales of the Group's growth platforms totaled 6.16 billion euros, an increase of 14.5 percent, driven by the performance of emerging markets, Genzyme, and Diabetes.
Growth platforms represented 76.3 percent of total sales. Emerging markets sales grew 16.5 percent to Sanofi Q2 Profit Surges; Lifts FY Earnings View 2.86 billion euros, and represented 35.4 percent of total Group sales. Genzyme was up 29.1 percent and Diabetes climbed 16.2 percent.
Commenting on the future, Sanofi's Chief Executive said, 'Our solid second quarter performance reflects consistent execution of our growth strategy and allows us to slightly adjust upwards our 2014 financial guidance. This quarter, growth platforms represented more than 75% of our sales.'
For full-year 2014, business earnings per share is expected to be between 6 to 8 percent higher than 2013 at CER, barring major unforeseen adverse events.
In February, the company forecast 2014 business earnings per share to grow 4 to 7 percent at constant exchange rates.
In Paris, Sanofi shares are currently trading at 79.75 euros, up 3.72 percent.
Copyright RTT News/dpa-AFX