Sandoz reports second-quarter sales and half-year 2024 results
Sandoz announced strong financial results for Q2 and H1 2024. Net sales for Q2 were USD 2.6 billion, a 9% increase in constant currencies, while H1 sales reached USD 5.0 billion, a 7% rise. The core EBITDA margin for H1 was 17.5%, up 210 basis points from H2 2023. However, the overall EBITDA margin was 11.4% due to one-time costs. Significant drivers included a 29% growth in biosimilars and no impact from price erosion.
By region, Q2 sales rose 3% in Europe, 23% in North America, and 9% internationally. Key products contributing to growth included Hyrimoz, Cimerli, and Omnitrope. Despite positive topline growth, net income fell by 36% to USD 151 million, and operating income declined by 28% to USD 332 million. Net debt increased to USD 3.4 billion. Sandoz raised its full-year growth guidance to mid- to high-single digits in constant currencies and expects a core EBITDA margin of around 20%.
Sandoz ha annunciato risultati finanziari solidi per il secondo trimestre e il primo semestre del 2024. Le vendite nette per il secondo trimestre sono state di 2,6 miliardi di USD, con un aumento del 9% a tassi di cambio costanti, mentre le vendite del primo semestre hanno raggiunto i 5,0 miliardi di USD, in crescita del 7%. Il margine EBITDA core per il primo semestre è stato del 17,5%, in aumento di 210 punti base rispetto al secondo semestre del 2023. Tuttavia, il margine EBITDA totale si è attestato all'11,4% a causa di costi una tantum. Tra i principali fattori di crescita si è registrato un incremento del 29% nei biosimilari e nessun impatto dall'erosione dei prezzi.
Per regione, le vendite del secondo trimestre sono aumentate del 3% in Europa, del 23% in Nord America e del 9% a livello internazionale. I prodotti chiave che hanno contribuito alla crescita includono Hyrimoz, Cimerli e Omnitrope. Nonostante una crescita positiva del fatturato, il reddito netto è diminuito del 36% a 151 milioni di USD, e il reddito operativo è calato del 28% a 332 milioni di USD. Il debito netto è aumentato a 3,4 miliardi di USD. Sandoz ha innalzato le sue previsioni di crescita per l'intero anno a un aumento tra il mid e l'alta singola cifra a tassi di cambio costanti e prevede un margine EBITDA core di circa il 20%.
Sandoz anunció resultados financieros sólidos para el segundo trimestre y el primer semestre de 2024. Las ventas netas del segundo trimestre fueron de 2.6 mil millones de USD, un aumento del 9% en monedas constantes, mientras que las ventas del primer semestre alcanzaron los 5.0 mil millones de USD, un incremento del 7%. El margen EBITDA core para el primer semestre fue del 17.5%, un aumento de 210 puntos base en comparación con el segundo semestre de 2023. Sin embargo, el margen EBITDA total se situó en el 11.4% debido a costos extraordinarios. Los principales factores de crecimiento incluyeron un aumento del 29% en biosimilares y ningún impacto por erosión de precios.
Por región, las ventas del segundo trimestre aumentaron un 3% en Europa, un 23% en América del Norte y un 9% a nivel internacional. Los productos clave que contribuyeron al crecimiento incluyeron Hyrimoz, Cimerli y Omnitrope. A pesar del crecimiento positivo en las cifras, el ingreso neto cayó un 36% a 151 millones de USD, y el ingreso operativo disminuyó un 28% a 332 millones de USD. La deuda neta aumentó a 3.4 mil millones de USD. Sandoz elevó su pronóstico de crecimiento para todo el año a un incremento de un dígito medio a alto en monedas constantes y espera un margen EBITDA core de aproximadamente el 20%.
산도즈(Sandoz)는 2024년 2분기와 상반기 강력한 재무 결과를 발표했습니다. 2분기 순매출은 26억 달러로, 일정 환율 기준 9% 증가했으며, 상반기 매출은 50억 달러에 달해 7% 성장했습니다. 상반기 핵심 EBITDA 마진은 17.5%로, 2023년 2분기 대비 210bp 상승했습니다. 그러나 전체 EBITDA 마진은 일회성 비용으로 인해 11.4%로 떨어졌습니다. 주요 성장 동력으로는 바이오시밀러가 29% 성장하면서 가격 침식의 영향을 받지 않았습니다.
지역별로는 2분기 유럽의 매출이 3%, 북미에서 23%, 국제적으로 9% 증가했습니다. 성장에 기여한 주요 제품으로는 Hyrimoz, Cimerli, Omnitrope가 있습니다. 긍정적인 매출 성장에도 불구하고 순익은 36% 감소하여 1억5100만 달러에 달하며, 영업 이익은 28% 감소하여 3억3200만 달러가 되었습니다. 순부채는 34억 달러로 증가했습니다. 산도즈는 연간 성장 가이드를 상수 통화 기준으로 중간에서 높은 단일 자릿수 증가로 상향 조정했으며, 약 20%의 핵심 EBITDA 마진을 예상하고 있습니다.
Sandoz a annoncé des résultats financiers solides pour le deuxième trimestre et le premier semestre 2024. Les ventes nettes pour le deuxième trimestre étaient de 2,6 milliards USD, soit une augmentation de 9 % à taux de change constants, tandis que les ventes du premier semestre ont atteint 5,0 milliards USD, soit une hausse de 7 %. La marge EBITDA de base pour le premier semestre était de 17,5 %, en hausse de 210 points de base par rapport au deuxième semestre 2023. Cependant, la marge EBITDA globale était de 11,4 % en raison de coûts exceptionnels. Les principaux moteurs de croissance comprenaient une augmentation de 29 % des biosimilaires et aucune incidence due à l'érosion des prix.
Par région, les ventes du deuxième trimestre ont augmenté de 3 % en Europe, de 23 % en Amérique du Nord et de 9 % à l'international. Les produits clés contribuant à la croissance comprenaient Hyrimoz, Cimerli et Omnitrope. Malgré une croissance positive du chiffre d'affaires, le revenu net a chuté de 36 % à 151 millions USD, et le revenu opérationnel a diminué de 28 % à 332 millions USD. La dette nette a augmenté à 3,4 milliards USD. Sandoz a relevé ses prévisions de croissance pour l'ensemble de l'année à un chiffre entre le milieu et le haut de la plage à un chiffre dans des monnaies constantes et prévoit une marge EBITDA de base d'environ 20 %.
Sandoz hat starke Finanzergebnisse für das zweite Quartal und das erste Halbjahr 2024 bekannt gegeben. Die Nettoverkaufszahlen für das zweite Quartal betrugen 2,6 Milliarden USD, was einem Anstieg von 9% in konstanten Währungen entspricht, während die Verkäufe im ersten Halbjahr 5,0 Milliarden USD erreichten, was einem Anstieg von 7% entspricht. Die EBITDA-Marge für das erste Halbjahr lag bei 17,5%, was einem Anstieg von 210 Basispunkten im Vergleich zum zweiten Halbjahr 2023 entspricht. Dennoch lag die gesamt EBITDA-Marge bei 11,4%, bedingt durch einmalige Kosten. Wesentliche Treiber waren ein 29%iger Anstieg bei Biosimilars und keine Auswirkungen durch Preisverfall.
Nach Regionen stiegen die Verkäufe im zweiten Quartal um 3% in Europa, um 23% in Nordamerika und um 9% international. Zu den Schlüsselprodukten, die zum Wachstum beigetragen haben, gehören Hyrimoz, Cimerli und Omnitrope. Trotz positivem Umsatzwachstum fiel der Nettoertrag um 36% auf 151 Millionen USD, und der operating income ging um 28% auf 332 Millionen USD zurück. Die Nettoverbindlichkeiten stiegen auf 3,4 Milliarden USD. Sandoz hat seine Wachstumsprognose für das Gesamtjahr auf einen Anstieg im Mittelding bis hohen einstelligen Bereich in konstanten Währungen angehoben und erwartet einen core EBITDA margin von etwa 20%.
- Net sales for Q2 of USD 2.6 billion, up 9% in constant currencies.
- H1 2024 net sales of USD 5.0 billion, up 7% in constant currencies.
- Core EBITDA margin improved to 17.5%, up 210 basis points from H2 2023.
- Biosimilars sales grew by 29%.
- Increased full-year growth guidance to mid- to high-single digits.
- Core EBITDA margin expected to be around 20%.
- Net income fell by 36% to USD 151 million.
- Operating income declined 28% to USD 332 million.
- Overall EBITDA margin was 11.4% due to one-time separation and transformation costs.
- Net debt increased to USD 3.4 billion.
Ad hoc announcement pursuant to art. 53 SIX Swiss Exchange Listing Rules
MEDIA RELEASE
- Strong double-digit growth in biosimilars of
29% from existing portfolio and recent launches - Second-quarter net sales[1] of USD 2.6 billion, up
9% in constant currencies (up7% in USD) - Half-year net sales of USD 5.0 billion, up
7% in constant currencies (up6% in USD) - Half-year core EBITDA margin[2] of
17.5% , a strong 210 basis point improvement versus H2 2023, driven by favorable biosimilars mix; within H1, margin expanded quarter-over-quarter - Half-year 2024 EBITDA margin of
11.4% , due to one-time separation and transformation costs, and rationalization of specific manufacturing sites - Net sales growth guidance increased to mid- to high-single digit in constant currencies (from mid-single digit) and reinforced confidence in core EBITDA margin of around
20% - Executive Committee appointments: Rebecca Guntern as Chief Commercial Officer, and Christophe Delenta as President Europe, both effective September 1, 2024
Basel, August 8, 2024 – Sandoz (SIX:SDZ/OTCQX:SDZNY), the global leader in generic and biosimilar medicines, today announced net sales for the second quarter and results for the half year ended June 30, 2024. For the second quarter, net sales were USD 2.6 billion, an increase of
Richard Saynor, Chief Executive Officer of Sandoz, said: “We are executing on our strategy, meeting key milestones in our biosimilar business and progressing on our journey as a standalone company. In recent months, we saw strong uptake of Hyrimoz® in the US, received approval for Pyzchiva® (ustekinumab) and Wyost®/Jubbonti® (denosumab) in the US and Europe and secured a settlement agreement in the US with launch dates in the first half of 2025. We also advanced our separation and transformation programs, and broke ground on our new biosimilar manufacturing facility in Slovenia.
“These strategic achievements came alongside solid financial results, as demonstrated by strong double-digit growth in biosimilars and a positive contribution by all three regions for the second quarter and half year. Our half-year 2024 core EBITDA margin was
1 Net sales in this document refer systematically to net sales to third parties. In the first half of 2023, third party sales excluded sales to our former parent. Post separation, sales to our former parent were reclassified as third-party sales.
2 An explanation of non-IFRS measures can be found in the Supplementary financial information of the Half-Year Report 2024.
EXECUTIVE COMMITTEE APPOINTMENTS
Going into the second half of 2024, Sandoz is announcing some senior leadership changes. Pierre Bourdage, Sandoz Chief Commercial Officer and a member of the Executive Committee, is unfortunately stepping down from his role for personal health reasons.
The company has appointed Rebecca Guntern, currently President Europe and a member of the Executive Committee, as the new Chief Commercial Officer effective September 1, 2024. A Swiss national, Rebecca is a seasoned commercial leader, who has been with Sandoz for almost two decades. She has successfully led the European organization across more than 40 countries since 2020. Under her tenure, the company’s leading position in Europe has further strengthened, particularly in biosimilars.
Drawing on a strong bench of internal leaders, Christophe Delenta will succeed Rebecca Guntern as President Europe and become a member of the Executive Committee, also effective September 1, 2024. A French national, Christophe is currently Cluster Head within the Sandoz Europe region, overseeing the business in major EU markets such as France, Italy and Spain. He has more than 25 years of experience as a leader in pharmaceuticals, the last eight years of which were with Sandoz. Looking back on a successful career in a broad range of commercial roles, Christophe has worked in Europe, Africa, the United States and Latin America, in both generic and originator companies.
Richard Saynor, Chief Executive Officer of Sandoz, said: “We would like to thank Pierre for his leadership and everything he has done for Sandoz for many years. Please join me in wishing him the very best, and in congratulating Rebecca and Christophe on their appointments.”
SECOND QUARTER AND HALF-YEAR 2024 NET SALES RESULTS
Net sales for the second quarter were USD 2.6 billion, up
Net sales for the first half of 2024 were USD 5.0 billion, up
Net sales by business
| Three months ended June 30 | Change % | Six months ended June 30 | Change % | |||||||||
| USD millions unless indicated otherwise | 2024 | 2023 | USD | cc* | 2024 | 2023 | USD | cc | ||||
| Generics | 1 835 | 1 850 | -1 | 1 | 3 704 | 3 718 | 0 | 1 | ||||
| Biosimilars | 720 | 533 | 35 | 37 | 1 343 | 1 049 | 28 | 29 | ||||
| Net sales to third parties | 2 555 | 2 383 | 7 | 9 | 5 047 | 4 767 | 6 | 7 | ||||
*constant currencies
Generics overview
Net sales for the second quarter were USD 1.8 billion, up
The momentum continued in the International region, aided by demand for the antifungal agent Mycamine®. Europe remained stable despite strong prior year comparisons. These include the strong sales of apixaban in the first half of 2023 which was withdrawn in the Netherlands following a court decision in August 2023, and an exceptional cough and cold season last year. Launches in North America are planned in the second half of the year, with the relative phasing impacting growth in the first half.
Biosimilars overview
Net sales for the second quarter were USD 720 million, up
The strong double-digit biosimilars growth reflects the uptake of Hyrimoz® (adalimumab) in the US, the acquisition of Cimerli® (ranibizumab), the continued strong demand for our first-ever biosimilar, Omnitrope® (somatropin) and the launch of Tyruko® (natalizumab) in Europe.
Net sales by region
| Three months ended June 30 | Change % | Six months ended June 30 | Change % | |||||||||
| USD millions unless indicated otherwise | 2024 | 2023 | USD | cc | 2024 | 2023 | USD | cc | ||||
| Europe | 1 308 | 1 277 | 2 | 3 | 2 634 | 2 547 | 3 | 3 | ||||
| North America | 620 | 508 | 22 | 23 | 1 144 | 1 004 | 14 | 14 | ||||
| International | 627 | 598 | 5 | 9 | 1 269 | 1 216 | 4 | 10 | ||||
| Net sales to third parties | 2 555 | 2 383 | 7 | 9 | 5 047 | 4 767 | 6 | 7 | ||||
Europe overview
Net sales for the second quarter were USD 1.3 billion, up
Strong growth in biosimilars continues, led by demand for Omnitrope® and the contribution from the recent launch of Tyruko®. This was partly offset by a stable generics business due to a strong prior year comparison. This includes the withdrawal of apixaban and an exceptional cough and cold season.
North America overview
Net sales for the second quarter were USD 620 million, up
Growth was driven by the ongoing uptake of Hyrimoz® in the US and the acquisition of Cimerli®. This was partly offset by a decline in generics sales due to the timing of new launches in the US, which are planned in the second half of 2024.
International overview
Net sales for the second quarter were USD 627 million, up
This was primarily a result of strong volume growth across both generics and biosimilars, the acquisition of Mycamine® in the prior year and favorable price dynamics, partly offset by the divestment of the Chinese business in the second quarter.
HALF-YEAR KEY OPERATING AND NON-OPERATING RESULTS
| Six months ended June 30 | Change % | ||||||
| USD millions unless indicated otherwise | 2024 | 2023 | USD | cc | |||
| Net sales to third parties | 5 047 | 4 767 | 6 | 7 | |||
| Gross profit | 2 380 | 2 374 | 0 | 3 | |||
| Operating income | 332 | 462 | (28) | (17) | |||
| EBITDA | 576 | 720 | (20) | (13) | |||
| Net income | 151 | 236 | (36) | (26) | |||
| Core results | |||||||
| Core gross profit | 2 544 | 2 537 | 0 | 2 | |||
| % of net sales to third parties | 50.4 | 53.2 | |||||
| Core operating income | 763 | 870 | (12) | (7) | |||
| % of net sales to third parties | 15.1 | 18.3 | |||||
| Core EBITDA | 885 | 992 | (11) | (6) | |||
| % of net sales to third parties | 17.5 | 20.8 | |||||
| Core net income | 484 | 591 | (18) | (13) | |||
| Core diluted earnings per share (USD) | 1.12 | 1.37 | (18) | (13) | |||
Core gross profit in the first half of 2024 was USD 2.5 billion, in line with prior year. Core gross profit margin was
Core EBITDA in the first half of 2024 was USD 885 million versus USD 992 million in the prior year. Core EBITDA margin was
EBITDA in the first half of 2024 was USD 576 million versus USD 720 million in the prior year. Core adjustments for EBITDA in the first half of 2024 were USD 309 million compared to USD 272 million in the prior year, driven primarily by transformation costs of USD 140 million, separation costs of USD 118 million and rationalization of specific manufacturing sites of USD 42 million.
Core net income was USD 484 million compared to USD 591 million in the prior year, mainly driven by lower core EBITDA and higher interest expense, partly offset by lower income tax. As a result, core diluted earnings per share was USD 1.12, compared to USD 1.37 in the prior year. The weighted average number of shares was 432.2 million in the first half of 2024.
NET CASH FLOW, NET WORKING CAPITAL AND NET DEBT
The company generated net cash flows from operating activities of USD 229 million, an improvement compared to USD 85 million in the prior year.
Capital expenditures were USD 205 million, compared to USD 169 million in the prior year. This includes investments in our new biosimilars facility in Slovenia and our antibiotics facility in Austria, as well as separation-related investments in facilities and technology.
Management free cash flow, defined as free cash flow adjusted for one-off items, was USD 237 million, an improvement compared to USD 1 million in the prior year. Free cash flow was USD 21 million, an improvement compared to negative USD 86 million in the prior year.
Lower operating income was offset by a lower rate of increase of inventory following the spin-off from our former parent, and other working capital and operating items remaining stable despite strong topline growth.
Net working capital of USD 3.9 billion increased by USD 173 million compared to December 31, 2023, primarily due to an increase in inventory driven by the build-up for product launches, and higher sales.
Total cash and cash equivalents decreased to USD 0.7 billion on June 30, 2024, compared to USD 1.1 billion on December 31, 2023. Net cash flows from operating activities were more than offset by our first dividend payment of USD 215 million and the Cimerli® acquisition of USD 188 million.
As a result of the above, net debt increased to USD 3.4 billion on June 30, 2024, compared to USD 3.1 billion on December 31, 2023.
GUIDANCE 2024
On the back of favorable business momentum and accelerated growth in United States biosimilars, the company is increasing its full year 2024 net sales guidance to mid- to high-single digit growth in constant currencies versus prior year (from mid-single digit) and is confirming its core EBITDA margin of around
HALF-YEAR REPORT
The company published its Half-Year Report 2024 today, which can be found on the Sandoz website.
KEY LINKS
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Analyst Consensus
DISCLAIMER
This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.
This media release includes non-IFRS financial measures as defined by Sandoz. An explanation of non-IFRS measures can be found in the Supplementary financial information of the Half-Year Report 2024.
ABOUT SANDOZ
Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in generic and biosimilar medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 people of 100 nationalities work together to ensure 800 million patient treatments are provided by Sandoz, generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1,500 products addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. Its history of breakthroughs includes Calcium Sandoz in 1929, the world’s first oral penicillin in 1951, and the world’s first biosimilar in 2006. In 2023, Sandoz recorded sales of USD 9.6 billion.
CONTACTS
| Global Media Relations contacts | Investor Relations contacts |
| Global.MediaRelations@sandoz.com | Investor.Relations@sandoz.com |
| Steffen Kurzawa +41 79 800 8501 | Karen M. King +1 609 722 0982 |
| Joerg E. Allgaeuer +49 171 838 4838 | Laurent de Weck +41 79 795 7364 |
SUPPORTING FINANCIAL INFORMATION
Quarterly sales
H1 2024
| USD millions unless indicated otherwise | Q1 2024 | Change % | Q2 2024 | Change % | |||||||||||||||
| USD | cc | USD | cc | ||||||||||||||||
| Generics | 1 869 | 0 | 1 | 1 835 | (1) | 1 | |||||||||||||
| Biosimilars | 623 | 21 | 21 | 720 | 35 | 37 | |||||||||||||
| Net sales to third parties | 2 492 | 5 | 6 | 2 555 | 7 | 9 | |||||||||||||
| Europe | 1 326 | 4 | 2 | 1 308 | 2 | 3 | |||||||||||||
| North America | 524 | 6 | 6 | 620 | 22 | 23 | |||||||||||||
| International | 642 | 4 | 12 | 627 | 5 | 9 | |||||||||||||
| Net sales to third parties | 2 492 | 5 | 6 | 2 555 | 7 | 9 | |||||||||||||
| FY 2023 | |||||||||||||||||||
| USD millions unless indicated otherwise | Q1 2023 | Change % | Q2 2023 | Change % | Q3 2023 | Change % | Q4 2023 | Change % | |||||||||||
| USD | cc | USD | cc | USD | cc | USD | cc | ||||||||||||
| Generics | 1 868 | 2 | 6 | 1 850 | 4 | 6 | 1 794 | 5 | 4 | 1 920 | 6 | 6 | |||||||
| Biosimilars | 516 | 11 | 17 | 533 | 13 | 14 | 543 | 7 | 4 | 623 | 29 | 26 | |||||||
| Net sales to third parties | 2 384 | 4 | 9 | 2 383 | 5 | 8 | 2 337 | 6 | 4 | 2 543 | 11 | 10 | |||||||
| Europe | 1 270 | 10 | 16 | 1 277 | 14 | 12 | 1 204 | 11 | 3 | 1 272 | 10 | 4 | |||||||
| North America | 496 | (5) | (3) | 508 | (4) | (2) | 510 | (4) | (3) | 615 | 20 | 20 | |||||||
| International | 618 | (1) | 4 | 598 | (3) | 8 | 623 | 3 | 12 | 656 | 4 | 14 | |||||||
| Net sales to third parties | 2 384 | 4 | 9 | 2 383 | 5 | 8 | 2 337 | 6 | 4 | 2 543 | 11 | 10 | |||||||
Reconciliation of core results
Reconciliation from IFRS results to core results
H1 2024
| USD millions unless indicated otherwise | IFRS results | Amortization of intangible assets1 | Impairments2 | Acquisition or divestment of businesses and related items3 | Other items4 | Core results | |
| Net sales | 5 047 | – | – | – | – | 5 047 | |
| Other revenues | 15 | – | – | – | – | 15 | |
| Cost of goods sold | (2 682) | 114 | – | 11 | 39 | (2 518) | |
| Gross profit | 2 380 | 114 | – | 11 | 39 | 2 544 | |
| Selling, general and administration | (1 246) | – | – | – | 13 | (1 233) | |
| Development and regulatory | (489) | – | 1 | – | 1 | (487) | |
| Other income | 81 | – | – | (30) | (5) | 46 | |
| Other expense | (394) | – | 1 | 3 | 283 | (107) | |
| Operating income5 | 332 | 114 | 2 | (16) | 331 | 763 | |
| Interest expense | (126) | – | – | – | – | (126) | |
| Other financial income and expense | (2) | – | – | – | (12) | (14) | |
| Income before taxes | 204 | 114 | 2 | (16) | 319 | 623 | |
| Income taxes6 | (53) | (139) | |||||
| Net income | 151 | 484 | |||||
| Basic earnings per share (USD) | 0.35 | 1.12 | |||||
| Diluted earnings per share (USD) | 0.35 | 1.12 |
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets.
2 Impairments: development and regulatory and other expense include impairment charges related to intangible assets and property, plant and equipment.
3 Acquisition or divestment of businesses and related items: cost of goods sold, other income and other expense include the gain from the China business divestment and portfolio agreement and expenses related to the acquisition of the Cimerli® business.
4 Other items: costs of goods sold and other expense include the Group-wide rationalization of manufacturing sites; costs of goods sold, selling general and administration, development and regulatory and other expense include the separation costs related to the spin-off; selling general and administration, other income and other expense include the costs related to the transformation program and other restructuring charges; other income and other expense also include legal-related items; other financial income and expense includes the monetary loss on the restatement of non-monetary items for subsidiaries in hyperinflationary economies.
5 For further breakdown of core adjustments by category, refer to table Reconciliation from IFRS operating income to core net income.
6 Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for items arising from legal settlements in certain jurisdictions. Due to these factors and the differing applicable tax rates in the various jurisdictions, the tax on the total adjustments of USD 419 million to arrive at the core results before tax amounts to USD 86 million. The average tax rate on the adjustments was
Further reconciliations of core results are available in the Supplementary financial information of the Half-Year Report 2024, which can be found on the Sandoz website.
Attachment
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