Novartis has reported a significant 43% increase in net income from continuing operations, reaching $3.24bn in the second quarter (Q2) of 2024, up from $2.27bn in the same period of 2023.

This notable growth in net income was attributed primarily to an increase in core operating income.

Operating income for Q2 2024 soared to $4.01bn – a substantial year-on-year increase from $2.80bn.

The rise in operating income has been chiefly attributed to higher net sales and reduced impairments, although this was partly offset by a rise in research and development investments.

Net sales from continuing operations for the company stood at a robust $12.51bn in Q2 2024, an increase on the $11.43bn recorded in Q2 2023.

Alongside the growth in net sales, Novartis also experienced a 40% rise in free cash flow from continuing operations, which amounted to $4.61bn compared to $3.29bn in the corresponding period of 2023.

For the first half of 2024, Novartis reported net income of $5.9bn and net sales of $24.3bn.

Looking ahead, the company has a positive outlook, having raised its full-year 2024 guidance.

Novartis now expects core operating income to grow to the mid-to-high teens, up from the previously forecasted low double-digit to mid-teens range, while maintaining its net sales guidance.

Novartis CEO Vas Narasimhan stated: “Novartis delivered a strong Q2, with net sales up 11% and core operating income margin approaching 40%. Our performance reflects the continued strong momentum of our key growth drivers, both in the US and ex-US, which has allowed us to upgrade our [fiscal year] 2024 guidance.

“We also advanced our pipeline in Q2, completing submissions to the FDA [US Food and Drugs Administration] for Scemblix in first-line CML and atrasentan in IgAN, generating updated data in the NATALEE study to support the strong profile of Kisqali in eBC, and executing multiple deals to expand our pipeline in RLT and prostate cancer. We remain on track to achieve our mid-term sales growth and margin guidance.”

In April 2024, Novartis reported net income from continuing operations of $2.68bn for Q1 2024, a 25% increase from $2.15bn in Q1 2023.

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