Novo Nordisk (NOVO) Q2 2024 London conference call earnings summary

Executive summary

• Sales grew 25% at CER (24% in DKK) to DKK 133.4bn in H1 2024, driven by strong demand for GLP-1 diabetes and obesity therapies, with operating profit up 19% at CER.

• Global diabetes value market share reached 34.1%, surpassing the 2025 strategic aspiration, with GLP-1 franchise leading growth.

• Obesity care sales rose 37% at CER, with Wegovy label extension in the EU, expanded US access, and approval in China.

• Free cash flow reached DKK 41.3bn, with DKK 38.9bn returned to shareholders via dividends and buybacks.

• Significant R&D progress, including positive phase II/III results for Mim8 and upcoming data for Monlunabant and CagriSema.

Financial highlights

• Sales: DKK 133,409 million (+25% CER year-over-year); operating profit: DKK 57,780 million (+19% CER); net profit: DKK 45,457 million (+16%).

• EBITDA increased 32% to DKK 69.5bn; gross margin was 84.9% (down from 85.1%).

• R&D costs rose 78–79% due to pipeline expansion and ocedurenone impairment.

• Capital expenditure reached DKK 18.9bn, up 79% year-over-year.

• Net cash from operating activities grew 11% to DKK 64.8bn.

Outlook and guidance

• 2024 sales growth expected at 22–28% CER; operating profit growth at 20–28% CER.

• Free cash flow forecasted at DKK 59–69bn; capital expenditure around DKK 45bn.

• Effective tax rate expected at 19–21%; currency expected to have a slight negative impact.

• Upgraded full-year outlook, requiring strong H2 growth due to tougher comparators.

• Guidance includes continued supply constraints and pricing pressure in diabetes and obesity care.