Sanofi India (500674) Q2 2024 earnings summary

Executive summary

• Q2 2024 marked a significant transformation with the demerger of the Consumer Healthcare business effective June 1, 2024, now reflected as discontinued operations.

• Diabetes brands Lantus and Toujeo achieved double-digit secondary sales growth, outpacing the market.

• New partnerships for CNS and CV brands established a foundation for future acceleration.

• Soliqua, a new diabetes drug, was launched and received positive initial market acceptance.

Financial highlights

• Standalone Q2 2024 revenue from operations was ₹4,635 million, down from ₹5,149 million in Q2 2023, impacted by supply constraints and divestments.

• Standalone profit before tax from continuing operations was ₹921 million, compared to ₹1,273 million in Q2 2023.

• Net profit for the period (continuing and discontinued) was ₹1,034 million, versus ₹1,229 million in Q2 2023.

• Operating expenses reduced by 9% year-over-year due to efficiency initiatives.

• Exceptional items included ₹190 million in personnel separation costs for Q2 2024.

Outlook and guidance

• Supply constraints that affected Q2 are expected to recover in the second half of 2024.

• Focus remains on improving operating efficiencies and expanding product availability.