Down 71 percent
Novartis profit collapses in 2022
$7 billion in net income, down significantly from last year. Novartis figures for 2022 at a glance.
Published: 59 minutes ago
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Updated: 1 minute ago
The main reason for the decline was higher restructuring costs, primarily in connection with the announced streamlining of the corporate model.
Novartis generated net income of $7 billion in 2022 – 71 percent less than the previous year. The Basel pharmaceutical company announced this on Wednesday morning. In 2021, the one-off income from the sale of Roche shares was significant. Excluding that, Novartis’ 2022 earnings are down just 9 percent.
The main reasons for the decline were higher restructuring costs, primarily in connection with the announced streamlining of the business model. Novartis announced massive job cuts last summer: 8,000 of 108,000 jobs will be cut worldwide. In Switzerland, 1,400 of 11,600 jobs are disappearing – more than one in ten.
“We will complete the restructuring program by the summer,” announced Novartis CEO Vas Narasimhan (46) in a conference call on the annual results. He also promised that the next reduction program would not be announced after that. “Novartis will be a more streamlined company from the second half of the year, also thanks to the Sandoz spin-off,” continued Narasimhan.
Novartis announced last year that it would spin off the Sandoz generics division in order to focus even more on the area of innovative medicine. According to Novartis, the spin-off is “on course” and should take place in the second half of the year.
Good news for the shareholders: they will receive a dividend increased from 3.10 francs to 3.20 francs, as the company further announced.
Also known was the salary of Novartis boss Vas Narasimhan (46). He earned significantly less last year than in 2021. In total, his total remuneration in 2022 was 8.5 million francs, after 11.2 million francs in the previous year. While the base salary remained stable at 1.8 million, in 2022 the payments from the variable long-term compensation plans in particular were significantly lower. (nim/sfa/SDA)
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