Sandoz Group (SDZ) Q4 2024 earnings summary

Executive summary

• Achieved over $10 billion in net sales for the first time in 2024, with all regions contributing and strong biosimilar growth.

• Biosimilars grew 30% year-over-year, now representing 28% of total net sales, with 13 consecutive quarters of growth.

• Core ROIC increased by 2.5 percentage points to 12.3%; proposed dividend up to CHF 0.60 per share.

• Expanded biosimilar pipeline to 28 assets/products, with three regulatory approvals and three launches in 2024.

• Transformation and sustainability initiatives advanced, including network optimization and a 12% reduction in greenhouse gases.

Financial highlights

• Net sales grew 9% year-over-year to $10.4 billion, with biosimilars up 30% and generics up 2%.

• Core EBITDA grew 24% at constant currencies, reaching $2,080 million in 2024, with margin up to 20.1%.

• Core ROIC increased by 2.5 percentage points to 12.3%.

• Free cash flow improved, supported by profitability and working capital management.

• Net debt to core EBITDA ratio at 1.6x, maintaining investment-grade ratings.

Outlook and guidance

• 2025 net sales expected to grow mid-single digits in constant currencies; core EBITDA margin targeted at ~21%.

• Anticipates low- to mid-single-digit price erosion and adverse 4 percentage points currency impact on net sales.

• Midterm outlook to 2028: annual mid-single-digit net sales growth and core EBITDA margin expansion to 24%-26%.

• At least 30% of sales expected from biosimilars by 2028.

• Dividend payout ratio to increase from 24% in 2025 to 30–40% mid-term.