Where can I learn more about Novartis financial results?
Our Financial data section provides links to:
- Annual results and Quarterly results, including a five-years results archive
- Novartis SEC filings
- The Novartis Reporting and transparency hub
- Latest Top 20 product sales
- Fixed-income securities information
- And monthly information about the Expected currency impact on our results
Upcoming releases and more events are listed in our Event calendar.
How do you calculate your earning per share?
Basic earnings per share (EPS) is calculated by dividing net income attributable to shareholders of Novartis AG by the weighted average number of shares outstanding in a reporting period. This calculation excludes the average number of issued shares purchased by the Company and held as treasury shares.
For diluted EPS, the weighted average number of shares outstanding is adjusted to assume the vesting of dilutive restricted shares (RSs), restricted share units (RSUs) and performance share units (PSUs), and in 2022 also the conversion of potentially dilutive shares arising from options on Novartis shares under employee compensation plans that have been issued. In January 2023, all outstanding options under these plans expired. As a result, there were no options on Novartis shares issued or outstanding at December 31, 2024 and 2023.
No RSs, RSUs or PSUs in 2024, 2023 and 2022, and no options in 2022 were excluded from the calculation of diluted EPS, as all were dilutive.
2024 | 2023 | 2022 | |
---|---|---|---|
Net income attributable to shareholders of Novartis AG (USD millions) | |||
- Continuing operations | 11 941 | 8 568 | 6 049 |
- Discontinued operations | 6 282 | 906 | |
Net income attributable to shareholders of Novartis AG (USD millions) | 11 941 | 14 850 | 6 955 |
Number of shares (in millions) | |||
Weighted average number of shares outstanding used in basic earnings per share | 2 018 | 2 077 | 2 181 |
Adjustment for vesting of restricted shares, restricted share units and dilutive shares from options | 17 | 15 | 16 |
Weighted average number of shares in diluted earnings per share | 2 035 | 2 092 | 2 197 |
Basic earnings per share (USD) | |||
- Continuing operations | 5.92 | 4.13 | 2.77 |
- Discontinued operations | 3.02 | 0.42 | |
Total basic earnings per share (USD) | 5.92 | 7.15 | 3.19 |
Diluted earnings per share (USD) | |||
- Continuing operations | 5.87 | 4.10 | 2.76 |
- Discontinued operations | 3.00 | 0.41 | |
Total diluted earnings per share (USD) | 5.87 | 7.10 | 3.17 |
What is the exposure to exchange rate risk for Novartis?
We transact our business in many currencies other than the US dollar, our reporting currency.
The following table provides an overview of net sales and operating expenses from continuing operations based on IFRS Accounting Standards values, for the most important currencies to the Company:
Currency | 2024 % | 2023 % | |
---|---|---|---|
US dollar (USD) | Net sales from continuing operations | 44 | 42 |
Operating expenses from continuing operations1 | 39 | 37 | |
Euro (EUR) | Net sales from continuing operations | 23 | 24 |
Operating expenses from continuing operations1 | 23 | 20 | |
Swiss franc (CHF) | Net sales from continuing operations | 1 | 1 |
Operating expenses from continuing operations1 | 18 | 22 | |
Chinese yuan (CNY) | Net sales from continuing operations | 8 | 7 |
Operating expenses from continuing operations1 | 5 | 4 | |
Japanese yen (JPY) | Net sales from continuing operations | 4 | 4 |
Operating expenses from continuing operations1 | 2 | 2 | |
Canadian dollar (CAD) | Net sales from continuing operations | 2 | 2 |
Operating expenses from continuing operations1 | 1 | 1 | |
British pound (GBP) | Net sales from continuing operations | 2 | 2 |
Operating expenses from continuing operations1 | 2 | 5 | |
Russian ruble (RUB) | Net sales from continuing operations | 1 | 1 |
Operating expenses from continuing operations1 | 0 | 0 | |
Brazilian real (BRL) | Net sales from continuing operations | 2 | 2 |
Operating expenses from continuing operations1 | 1 | 1 | |
Australian dollar (AUD) | Net sales from continuing operations | 1 | 1 |
Operating expenses from continuing operations1 | 0 | 0 | |
Other currencies | Net sales from continuing operations | 12 | 14 |
Operating expenses from continuing operations1 | 9 | 8 |
1. Operating expenses include cost of goods sold; selling, general and administration; research and development; other income and other expense.
We prepare our consolidated financial statements in US dollars. As a result, fluctuations in the exchange rates between the US dollar and other currencies can have a significant effect on both the Company’s results of operations as well as the reported value of our assets, liabilities and cash flows. This in turn may significantly affect reported earnings (both positively and negatively) and the comparability of period-to-period results of operations.
For purposes of our consolidated balance sheets, we translate assets and liabilities denominated in other currencies into US dollars at the prevailing market exchange rates as of the relevant balance sheet date. For purposes of the Company’s consolidated income and cash flow statements, revenue, expense and cash flow items in local currencies are translated into US dollars at average exchange rates prevailing during the relevant period. As a result, even if the amounts or values of these items remain unchanged in the respective local currency, changes in exchange rates have an impact on the amounts or values of these items in our consolidated financial statements.
Because our expenditure in Swiss francs is significantly higher than our revenue in Swiss francs, volatility in the value of the Swiss franc can have a significant impact on the reported value of our earnings, assets and liabilities, and the timing and extent of such volatility can be difficult to predict.