Sanofi (SAN) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached €13.4 billion, up 16% at constant exchange rates (CER), driven by Dupixent, vaccines (notably Beyfortus), and recent pharma launches.

• Dupixent sales approached €3.5 billion in Q3 (+24%), with global growth and expanded indications; full-year 2024 target of €13 billion reaffirmed.

• New product launches contributed nearly €3 billion year-to-date, with Beyfortus, ALTUVIIIO, and Nexviazyme as key contributors.

• 2024 business EPS guidance was raised to at least low single-digit % growth at CER, reflecting continued momentum and excluding Opella.

• Strategic move to divest a controlling stake in Opella, transitioning to a pure-play biopharma focus; transaction expected to close in Q2 2025.

Financial highlights

• Q3 net sales: €13.4 billion (+16% CER); business operating income rose 19.9% to €4.6 billion; business EPS up 17.6% to €2.86.

• Gross margin improved by 1 percentage point to 75.0%, driven by positive mix effects.

• SG&A expenses grew less than sales, highlighting operational efficiency; R&D expenses increased 12.7% as planned.

• Business operating margin up 0.6pp to 34.3%.

• Free cash flow in Q3: €3,327 million (+79.5%).

Outlook and guidance

• 2024 business EPS expected to grow at least low single-digit % at CER, with a strong rebound anticipated in 2025 even after Opella separation.

• Currency impact on 2024 business EPS estimated at -5.5% to -6.5%.

• Beyfortus sales projected to reach ~€1.5 billion in 2024; Dupixent sales target of ~€13 billion for FY 2024.

• Full-year flu sales expected to decline low single-digit %, but total vaccines franchise to grow high single-digit %.

• Underlying tax rate expected to be ~20% in 2024 and 2025.