Sanofi (SAN) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached €13.4 billion, up 16% at constant exchange rates (CER), driven by Dupixent, vaccines (notably Beyfortus), and robust new pharma launches.

• Dupixent Q3 sales were €3.5 billion (+24%), with global growth and expanded indications; full-year 2024 target of €13 billion reaffirmed.

• New product launches contributed nearly €3 billion year-to-date, with Beyfortus, ALTUVIIIO, and Nexviazyme among top performers.

• 2024 business EPS guidance was upgraded to at least low single-digit growth at CER, reflecting continued momentum and excluding Opella.

• Strategic move to become a pure-play biopharma leader with the planned divestment of Opella.

Financial highlights

• Q3 net sales: €13.4 billion (+16% CER); business operating income rose 19.9% to €4.6 billion; business EPS up 17.6% to €2.86.

• Gross margin improved by 1 percentage point to 75.0%, driven by positive mix effects.

• R&D expenses increased 12.7%, supporting innovation; SG&A grew less than sales, highlighting operational efficiency.

• Free cash flow in Q3: €3,327 million (+79.5%); net debt as of September 30, 2024: €11.5 billion.

• Beyfortus Q3 sales reached €645 million; Altuviiio sales €172 million; total new launches contributed nearly €3 billion in nine months.

Outlook and guidance

• 2024 business EPS now expected to grow at least a low single-digit % at CER, upgraded from flat, with strong rebound expected in 2025.

• Beyfortus sales projected at ~€1.5 billion for 2024; Dupixent sales target of ~€13 billion for FY 2024.

• Vaccines franchise expected to grow by high single digits; flu sales to decline low single digits due to soft vaccination rates.

• Continued investment in R&D (+€700 million in 2024) and digital sales/marketing.

• Currency impact on 2024 business EPS estimated at -5.5% to -6.5%; tax rate expected to rise to 20-21%.