Industry Trend Analysis - Falling Diabetes Revenues To Continue To Challenge Sanofi's Revenue Stream - JUNE 2017

BMI View : Ongoing uncertainty in Sanofi ' s diabetes division and the resulting hit to the company ' s revenue streams will result in investors keeping a close eye on management's strategy going forward. Despite the better-than-expected first-quarter profits on strong sales from Genzyme and the consumer healthcare division, Sanofi has left its full year guidance unchanged, reiterating expectations that full year earnings per share growth would come in at somewhere between zero and 3%.

In Q117, Sanofi reported a 11.1% increase in net sales in actual terms (8.6% in constant exchange rate [CER] terms) to EUR8,648mn (USD9,422mn); a 4.2% increase in net income to EUR1,795mn (USD1,956mn) (1.0% in CER terms) and a 6.0% increase in actual terms (3.0% in CER terms) in business earnings per share to EUR1.42 (USD2). Sanofi's Q117 results reflect the acquisition of Boehringer Ingelheim's (BI) consumer healthcare business and full consolidation of Sanofi's European vaccine operations, in addition to a 14.7% decline in Lantus sales to EUR1.23bn (USD1.34bn).

In Q117, sales were boosted (in CER terms) by the favourable impact of Genzyme's specialty care medicines (+15.5% in CER terms). Exchange rate movements had a favourable effect of 2.5 percentage points in Q117 reflecting mainly the positive evolution of the US dollar, Brazilian Real and Japanese Yen which more than offset the negative impact from the Egyptian Pound, Turkish Lira and British Pound.

A Rise In Income
Sanofi: Financial Snapshot (EURmn)
Source: Sanofi

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