(all figures are converted from Danish Krone at the rate of 1 DK to .15 USD)
Novo Nordisk management, today announced a significant upward revision to revenue and operating earnings estimates for 2023.
Revenue for 2023, previously forecast to range as high as $30.7 billion, up from $26.6 billion, is now forecast to rise to a range of $33.7 billion. The range actually represents a mid-point and Novo Nordisk has consistently come in above the mid-point of revenue growth in its fiscal reports.
The fiscal guidance change is significant, an 11% increase overall.
As to operating profit growth, the previous fiscal guidance was for a 16% overall increase (midpoint) in 2023 above the 2022 reported figures and matched the level of revenue growth, indicative of some inflationary pressures upon the cost structure.
This update indicates a midpoint improvement in operating profit in the range of 31%, a mathematically significant increase of 15% over the earlier guidance. This figure suggests that operating earnings growth will more than offset any cost increases, leading to margin improvement.
In terms of major company guidance revisions announced in the pharmaceutical company space, thus far in 2023, this may be the most significant upward revision yet.