Novo Nordisk(NVO) - 2023 Q4 - Annual Report

Financial Performance - Novo Nordisk's sales increased by 31% in Danish kroner and by 36% at constant exchange rates to DKK 232.3 billion in 2023[3]. - Operating profit rose by 37% in Danish kroner and by 44% at constant exchange rates to DKK 102.6 billion[3]. - The company achieved a net profit of DKK 83,683 million in 2023, marking a 51% increase compared to 2022[14]. - Gross profit for 2023 was DKK 196,496 million, reflecting a 32% increase year-over-year, with a gross margin of 84.6%[14]. - The diluted earnings per share rose to DKK 18.62, a 52% increase from the previous year[14]. - Net sales for 2023 reached DKK 232,261 million, a 31% increase from 2022, and a 36% increase at constant exchange rates (CER)[14]. - Operating profit (EBIT) increased by 44% at CER to DKK 102,574 million, reflecting strong sales growth[61]. - Net profit increased by 51% to DKK 83,683 million, with diluted earnings per share rising by 52% to DKK 18.62[62]. - Free cash flow for 2023 was DKK 68.3 billion, with DKK 61.7 billion returned to shareholders[12]. Sales Growth - Sales in North America Operations surged by 50% in Danish kroner, while International Operations saw an 11% increase[3]. - Diabetes and Obesity care sales grew by 38% in Danish kroner to DKK 215.1 billion, driven by a 48% increase in GLP-1 diabetes sales and a 147% increase in Obesity care sales[3]. - Sales growth for 2024 is expected to be between 18% to 26% at CER, with operating profit growth projected at 21% to 29% at CER[81][82]. - Sales of the injectable GLP-1 product Ozempic reached DKK 95,718 million, a 60% increase from 2022[17]. - Sales of GLP-1-based products for type 2 diabetes increased by 48% in Danish kroner and by 52% at CER to DKK 123,132 million, with a global market share of 6.0%[22]. - Sales of Obesity care products increased by 147% in Danish kroner and by 154% at CER to DKK 41,632 million, driven by North America Operations and International Operations[37]. - Wegovy sales surged by 407% in Danish kroner and by 420% at CER to DKK 31,343 million, reflecting strong demand and a commercial relaunch in the US[37]. - Sales in North America Operations increased by 67% at CER, driven by Obesity care sales growing by 151% at CER[66]. Dividends and Shareholder Returns - The Board of Directors proposed a final dividend of DKK 6.40 per share for 2023, totaling an expected DKK 9.40 per share for the year[4]. - The total dividend per share for 2023 was DKK 9.40, also reflecting a 52% increase year-over-year[14]. - Proposed final dividends of DKK 28,557 million are included in retained earnings, reflecting the company's commitment to returning value to shareholders[139]. Research and Development - Novo Nordisk completed a phase 3 trial with IcoSema and initiated a phase 1 trial with oral amycretin in Obesity care[4]. - Research and development costs increased by 37% at CER to DKK 32,443 million, reflecting increased clinical trial activity[60]. - The phase 3a trial COMBINE 3 for IcoSema has been successfully completed, with results expected from two additional trials in the first half of 2024[93]. Market Share and Competitive Position - The diabetes value market share increased by 1.9 percentage points to 33.8%[12]. - Novo Nordisk's global diabetes market share improved to 33.8% from 31.9% over the past year[20]. - The estimated GLP-1 share of total diabetes prescriptions increased to 15.5% in the US compared to 10.7% 12 months ago[25]. - In North America, GLP-1 sales increased by 48% in Danish kroner and by 52% at CER, with a market share of 53.1%[25]. Sustainability and Social Responsibility - CO2 emissions from operations and transportation decreased by 34% compared to 2019 and by 8% compared to 2022[107]. - The Changing Diabetes in Children program has reached over 52,000 children by the end of 2023, representing a 27% increase compared to 2022, with a goal to reach 100,000 children by 2030[109]. - Novo Nordisk aims to achieve a balanced gender representation across all managerial levels and a minimum of 45% women and men in senior leadership positions by the end of 2025[110]. Future Outlook - For 2024, sales growth is expected to be between 18-26% at constant exchange rates, with operating profit growth projected at 21-29%[4]. - Capital expenditure for 2024 is anticipated to be around DKK 45 billion, aimed at expanding manufacturing facilities in Denmark and France[84]. - The company continues to focus on innovation and therapeutic advancements as part of its strategic aspirations[155].