Novartis sees strong growth in core business
its health and functional foods unit, reported nine-month sales for
the year were up 11 per cent in local currencies, driven by strong
growth in pharmaceuticals.
Swiss pharmaceutical giant Novartis, which recently began divesting its health and functional foods unit, reported nine-month sales for the year were up 11 per cent in local currencies to SF24.2 billion (€ 16.5bn), driven by strong growth in its pharmaceuticals and generics units.
In the combined medical nutrition and health and functional food (HF&F) units, sales grew by a mere 3 per cent in local currencies (12 per cent in SF) to SF1.1 billion (€750m). In HF&F, sales growth from the core-brands offset the impact of distributor changes in China and Italy, said Novartis, while Sports Nutrition sales were lifted by the introduction of Isostar 'Fast Hydration'.
The company added that the HF&F divestment had moved a step closer to completion with the recently announced sale of the Food & Beverage business for approximately SF400 million to Associated British Foods. The transaction is expected to close before the end of the year, said Novartis.
Dr Daniel Vasella, chairman and CEO, attributed the otherwise strongresults to the performance of the pharmaceuticals business. Novartis currently generates 43 per cent of its sales in the US, which continues to be the world's largest and fastest growing pharmaceutical market, the company's core area.
The company said that pharmaceuticals outperformed the industry average in all major markets throughout 2002, delivering sales growth of 13 per cent in local currencies. Operating income is growing at double-digit rate (11 per cent), according to Novartis, andgood sales growth for the full year are expected, again driven by pharmaceuticals.
