Sanofi (SAN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales grew 9.7% at constant exchange rates to €9.9 billion, driven by Dupixent, new launches, and favorable vaccine phasing.

• Dupixent sales rose 20.3% year-over-year to €3.5 billion, with strong U.S. and international growth and new indications fueling momentum.

• New product launches contributed up to €1,131m (+46.5%), with ALTUVIIIO, Beyfortus, and others as key drivers.

• Strategic focus remains on innovation, pipeline expansion, and leadership in Type 2 inflammatory diseases and vaccines.

• Six regulatory approvals achieved across immunology, rare diseases, and oncology.

Financial highlights

• Gross margin improved to 78.0%, up 2.3 percentage points year-over-year, driven by product mix and efficiencies.

• Business EPS increased 15.7% to €1.79, reflecting strong sales and margin expansion.

• Business operating income rose 20.1% to €2,902m; business net income grew 15.9% to €2,212m.

• Free cash flow improved to €1,029m after acquisitions and disposals.

• Net debt increased to €11.2bn as of March 31, 2025.

Outlook and guidance

• Full-year 2025 guidance confirmed: sales expected to grow mid- to high single digits at CER, business EPS to grow at low double digits before share buyback.

• Guidance incorporates confirmed tariff impacts and a negative FX effect of -1% to -2% on sales and -1.5% to -2.5% on EPS.

• Gross margin to increase; R&D and SG&A expenses to rise slightly due to launches.

• Continued focus on organic growth, pipeline advancement, and bolt-on acquisitions.

• Anticipated phase III readouts and regulatory milestones for multiple pipeline assets in 2025 and 2026.