Sanofi (SAN) Q4 2024 earnings summary

Executive summary

• Achieved 11.3% year-over-year sales growth, driven by new product launches and strong performance from Dupixent and Beyfortus, with €4.5bn sales from nine newly launched medicines and vaccines.

• Strategic focus sharpened by selling a controlling stake in Opella consumer health, with closing expected in Q2 2025 at the earliest.

• R&D pipeline delivered eight positive phase III readouts, 21 regulatory submissions, and 14 approvals, with several launches expected in 2025.

• Ranked third in the 2024 Access to Medicine Index, with top governance and R&D access rankings.

• Board proposes €3.92 dividend for 2024, marking the 30th consecutive year of increases.

Financial highlights

• Q4 2024 net sales rose 10.3% at constant exchange rates to €10,564m; FY 2024 net sales up 11.3% to €41,081m.

• Q4 business operating income fell 7.7% to €2,078m; FY business operating income up 7.6% to €11,343m.

• Q4 business EPS was €1.31, down 11.0%; FY business EPS up 4.1% to €7.12, exceeding guidance.

• Gross margin for the year was 75.7%, down 1.0pp, mainly due to absence of COVID revenues and Aubagio LOE.

• Free cash flow for 2024 was €5,955m, impacted by one-offs including Lantus price cuts and acquisitions; net debt at year-end: €8,772m.

Outlook and guidance

• 2025 sales expected to grow at mid- to high-single-digit percentage at constant exchange rates; business EPS projected to grow at low double-digit percentage before FX and buybacks.

• FX impact on sales and EPS expected between +2% and +3% for 2025.

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

• Share buyback of €5 billion planned for 2025, with shares to be cancelled.

• Effective tax rate to remain broadly stable versus 2024.