Question

wHas Novo Nordisk been financially successful in the first two quarters of 2019 ?, and if so in what measures of financial performance( net income ,net profit operating , net sales, etc.)

Answer 1

Novo Nordisk is a Danish multinational pharmaceutical company headquartered in Bagsvaerd, Denmark. The financial performance of the company is a follows:

The performance of the company has been steady but it does not have huge growth. Single digit growths is what is seen with the performance.

Lets take a look at the first three months.

All the amount in DKK million except the EPS

Particulars	Amount Q1 2019	Amount Q1 2018	Growth in%
Sales	29291	26930	8.77%
Gross Profit	24559	22733	8.03%
Net Profit	10445	10751	-2.85%
EPS	4.36	4.4	-0.91%

We see that the sales and gross profit has increased but the net profit has not added much to the growth numbers in-fact it has decreased by 2.85% because of the increase in the expenses and net financial item which is deferred hedges and cash flow losses for the period. The currency fluctuations have made the financials look a little bleak. In the stable currency the firm would have reported a better performance.

For the first six months:

Particulars	Amount Q1 2019	Amount Q1 2018	Growth in%
Sales	59327	54337	9.18%
Gross Profit	49746	45788	8.64%
Net Profit	20040	21094	-5.00%
EPS	8.39	8.66	-3.12%

The performance of first six months have been on the same lines where the sales and gross profit has increased but the net profit and the EPS has taken a small hit in a negative way but what i believe is as its a pharma company which makes tablets related to diabetes, medications and devices, it will grow relatively and will show encouraging signs but the net profit and EPS has been low than last year is due to fluctuated currency in the international markets. They have an extremely good market share in obesity and diabetes segment which is 47% globally.

The NP and EPS numbers may look bleak but I think they will grow in good numbers if the international numbers stay constant.