Sandoz (SDZ) Q4 2024 earnings summary

Executive summary

• Achieved over $10 billion in net sales for the first time in 2024, with all regions contributing and biosimilars driving 30% growth.

• Core EBITDA margin expanded to 20.1%, reflecting a shift to higher-value products and operational leverage.

• Biosimilars now represent 28% of total net sales, with 13 consecutive quarters of growth.

• Expanded biosimilar pipeline to 28 assets, with three regulatory approvals and three launches in 2024.

• Transformation and simplification initiatives advanced, including network optimization and sustainability progress.

Financial highlights

• Net sales grew 9% year-over-year to $10.4 billion, with biosimilars up 30% and generics up 2%.

• Core EBITDA grew 24% at constant currencies, reaching $2,080 million in 2024.

• Core EBITDA margin improved by 3.1 percentage points to 20.1% on a comparable basis.

• Net debt to core EBITDA ratio improved to 1.6x, with net debt at $3.3 billion.

• Core gross profit margin held at 50.7%, with positive mix offsetting inflationary pressures.

Outlook and guidance

• 2025 net sales expected to grow mid-single digits in constant currencies; core EBITDA margin targeted at ~21%.

• Price erosion anticipated at low- to mid-single digits; margin improvement weighted to second half due to new launches.

• Midterm outlook to 2028 unchanged: annual mid-single-digit net sales growth and core EBITDA margin expansion to 24%-26%.

• At least 30% of sales expected from biosimilars by 2028.

• Dividend payout ratio to increase from 24% in 2025 to 30–40% mid-term.