Financial statement for the first quarter of 1995.NEW YORK--(BUSINESS WIRE)--May 10, 1995-- -- Consolidated sales increased by 9% to DKK 3,404 million.
- Health Care Business sales up 15%.
- Enzyme Business sales up 1%.
-- Operating income increased by 15% to DKK 473 million. -- Income before tax increased by 18% to DKK 425 million. -- Net income increased by 15% to DKK 310 million. -- Expectations for the full year of 1995 remain unchanged. Novo Nordisk Financial statement for the first quarter of 1995 (Amounts in millions, except earnings per share/ADS, number of shares outstanding and number of employees) First quarter ended 31 March (unaudited)
1995 1994
DKK USD(a) DKK USD(a) %Change
Net turnover 3,404 621.2 3,135 572.1 9 Operating income 473 86.3 411 75.0 15 Net financials (48) (8.7) (51) (9.3) (6) Income before tax 425 77.6 360 65.7 18 Taxation 115 21.0 90 16.4 28 Net income 310 56.6 270 49.3 15 Employees at the end of the period 13,289 12,000 11 Earnings per share 8.26 1.51 7.20 1.31 15 Earnings per ADS(b) 2.07 0.38 1.80 0.33 15 Average number of shares outstanding (millions) 37.5 37.5
In 1994 the company changed its method for valuation of inventories
by including direct labor costs; formerly, only direct materials and
energy were included. This change, which is in conformity with
Danish Accounting Guideline No 8, has increased operating income by
DKK 77 million and net income for 1994 by DKK 51 million. The full
effect is included in the fourth quarter of 1994.
(a) Translated for convenience at the 31 March 1995 exchange rate of
USD 1.00 = DKK 5.4800.
(b) Effective 18 April 1994, the ratio of Novo Nordisk's B shares to
ADSs was changed to 1:4 - one B share representing four ADSs.
Consolidated sales in the first quarter of 1995 were DKK DKK In currencies, this is the abbreviation for the Danish Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3,404 million compared with DKK 3,135 million in the corresponding period of 1994. This represents an increase of 9%. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was DKK 473 million, an increase of 15%. Income before tax and net income for the period under review were DKK 425 million and DKK 310 million, respectively, increases of 18% and 15% over the first quarter of 1994. Consolidated sales developed in line with expectations measured in local currencies. The sales increase reflected larger volumes sold and an improved product mix. The average value of Novo Nordisk's invoicing in·voice n. 1. A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill. 2. The goods or services itemized in an invoice. tr.v. currencies measured in DKK was approximately 5% lower in the first quarter of 1995 than in the corresponding period of 1994. The group's total license fees and other operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. were DKK 76 million compared with DKK 84 million last year. This development reflects realization of a significant non- recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. license income in the first quarter of 1994. The group's costs, excluding net financial costs and tax, were DKK 3,007 million, an increase of 7% over the corresponding period of 1994. Except for indirect production costs and research and development expenditure, which increased at a higher rate, all cost items increased at a slower rate than group turnover. Depreciation, which is included in the respective cost items, rose in total by 5% to DKK 248 million. Of the total increase in the number of employees, 120 are attributable to the joint venture recently established with the Chinese company Suzhou Hongda Enzyme enzyme, biological catalyst. The term enzyme comes from zymosis, the Greek word for fermentation, a process accomplished by yeast cells and long known to the brewing industry, which occupied the attention of many 19th-century chemists. Co, Ltd. Adjusted for the impact of this joint venture, the number of employees rose by just under 10%. Outlook for 1995 Novo Nordisk's 1994 Financial Results Statement issued on 8 March 1995 contained, among other things, the following outlook for 1995: "For 1995, Novo Nordisk Wikipedia is not the place for advertisement or self-advertising. Novo Nordisk (, NYSE: NVO) manufactures and markets pharmaceutical products and services. Founded in Denmark in 1923, the company has since become a world leader in diabetes care with the broadest expects a sales increase of up to 10%. These expectations assume that exchange rates of Novo Nordisk's invoicing currencies stabilize stabilize See peg. at the average level of the initial two months of the year, and that no significant new governmental measures to reduce the price of pharmaceutical products are introduced (...). Against this background Novo Nordisk expects an increase in income before tax at the level of the sales increase." So far, currency exchange rates have developed unfavorably for Novo Nordisk. Thus, the average value of Novo Nordisk's invoicing currencies is approximately 2% lower today than the average value in the initial two months of the year. The target of an increase in income before tax of up to 10% remains unchanged. If currency exchange rates do not improve during the year but remain at the present low levels, it will be more difficult to realize an increase of up to 10% in turnover and income before tax (in DKK). The effective tax rate for 1995 is expected to be at the level of 27%. This anticipates the effect of L35, the proposed bill on international taxation mentioned on previous occasions, which has now been enacted by the Danish Folketing (Parliament). Health Care Business (HCB HCB hexachlorobenzene. ) Total HCB sales in the first quarter of 1995 rose to DKK 2,365 million from DKK 2,065 million in 1994. The 15% sales increase mainly reflects developments in volume/product mix, which rose by just over 20%. Currency exchange rate movements affected HCB's sales negatively by 5% compared with the first quarter of 1994. Sales of Diabetes Care products increased by 8% to DKK 1,610 million, due mainly to larger volumes and an improved insulin insulin, hormone secreted by the β cells of the islets of Langerhans, specific groups of cells in the pancreas. Insufficiency of insulin in the body results in diabetes. Insulin was one of the first products to be manufactured using genetic engineering. product mix. Satisfactory progress was noted in key markets such as Japan, Germany and the UK. sales to the US market declined compared with last year, due primarily to the approximately 13% decrease in the average value of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. vis- -vis DKK from the first quarter of 1994 to the first quarter of 1995. Sales of HRT HRT abbr. hormone replacement therapy Hormone replacement therapy (HRT) Also called estrogen replacement therapy, this controversial treatment is used to relieve the discomforts of menopause. (hormone replacement therapy Hormone Replacement Therapy Definition Hormone replacement therapy (HRT) is the use of synthetic or natural female hormones to make up for the decline or lack of natural hormones produced in a woman's body. ) products rose by 27% to DKK 190 million, reflecting larger volumes sold in key markets such as Germany, the UK and the Nordic countries. Sales of hGH (human growth hormone human growth hormone (HGH): see growth hormone. - NorditropinR) rose by 27% to DKK 349 million. The positive development was due mainly to larger volumes sold in a number of European markets and in Japan. Sales of other Health Care products increased by 44% to DKK 216 million, due mainly to the fact that sales of SeroxatR more than doubled in the Nordic countries. Enzyme Business (EB) EB sales increased by 1% to DKK 885 million in 1995 from DKK 875 million in 1994. The sales growth is exclusively due to volume/product mix, which increased by just over 15%. The modest sales increase reflected an adverse trend of enzyme prices, combined with unfavorable currency developments, especially for USD vis- -vis DKK. The adverse price trend primarily occurred within proteases for the detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. industry, and to a lesser degree, enzymes Enzymes Organic substances (proteins) composed of amino acids that trigger and regulate chemical reactions in the body. There are over 700 identified human enzymes. Mentioned in: Interactions, Nutritional Supplements for the starch starch, white, odorless, tasteless, carbohydrate powder. It plays a vital role in the biochemistry of both plants and animals and has important commercial uses. industry. Currency exchange rates affected EB's total sales negatively by just over 7% compared with the first quarter of 1994. The overall sales growth was unevenly split on EB's two core product areas. Sales of detergent enzymes remained at the level attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. in the corresponding period last year. Sales of enzymes for the process industries grew at a somewhat higher rate than total EB sales. This is primarily due to volume/product mix improvements for a number of industries, notably the textile, baking baking: see cooking. baking Process of cooking by dry heat, especially in an oven. Baked products include bread, cookies, pies, and pastries. and brewing brewing: see beer. industries. Other businesses Sales from other businesses amounted to DKK 154 million compared with DKK 195 million in 1994, reflecting lower sales for both Ferrosan and Plant Protection combined with the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the bulk antibiotics Antibiotics Definition Antibiotics may be informally defined as the subgroup of anti-infectives that are derived from bacterial sources and are used to treat bacterial infections. business in December 1994. Net financials Net financial costs in the first quarter of 1995, including Novo Nordisk's share of profit in associated companies associated company associate n → Partnerfirma f associated company n → società collegata , were DKK 48 million compared with DKK 51 million in the same period last year. This includes a net foreign exchange loss of DKK 7 million against DKK 38 million in 1994; a net loss on marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of DKK 10 million against DKK 3 million in 1994; and net interest expense of DKK 9 million against net interest income of DKK 8 million in 1994. Future taxation Combined with the prior change to Danish tax rules gradually reducing relief for foreign income in connection with joint taxation, L35 will cause the group s effective tax rate to increase gradually to 32% up until the turn of the millennium. Holding of own B shares As of 31 March 1995, Novo Nordisk's holding of its own shares (treasury shares) was 295,950 B shares - unchanged from 31 December 1994. Bagsv rd, 10 May 1995 The Board of Directors Novo Nordisk A/S -0- Quarterly results for Novo Nordisk in 1995 and 1994 (unaudited) (Amounts in DKK million, except earnings per share/ADS and number of shares outstanding)
1995 1994 %(a)
1st 4th 3rd 2nd 1st
Qtr Qtr Qtr Qtr Qtr
Net turnover 3,404 3,579 3,369 3,441 3,135 9 Operating income 473 670 524 445 411 15 Net financials (48) 17 (13) (71) (51) (6) Income before tax 425 687 511 374 360 18 Taxation 115 189 127 94 90 28 Net income 310 498 384 280 270 15 Earnings per share 8.26 13.27 10.24 7.46 7.20 15 Earnings per ADS(b) 2.07 3.32 2.56 1.87 1.80 15 Average number of shares outstanding (millions) 37.5 37.5 37.5 37.5 37.5
In 1994 the company changed its method for valuation of inventories
by including direct labor costs; formerly, only direct materials and
energy were included. This change, which is in conformity with
Danish Accounting Guideline No 8, has increased operating income by
DKK 77 million and net income for 1994 by DKK 51 million. The full
effect is included in the fourth quarter of 1994.
(a) Development 1st Qtr 1994 to 1st Qtr 1995.
(b) Effective 18 April 1994, the ratio of Novo Nordisk's B shares to ADS
was changed to 1:4 - one B share representing four ADSs.
CONTACT: Carsten Boess Novo Nordisk of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Inc. (212) 867-0123 |
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