Novo Nordisk ups 2014 sales, profit outlook less than expected
COPENHAGEN (Reuters) - Denmark's Novo Nordisk , the world's largest insulin producer, raised its sales and profit expectations for 2014 on Thursday after reporting a fall in fourth quarter profits.
Novo Nordisk, now expects sales to grow by 8-11 percent and operating profit to grow by around 10 percent in local currencies.
In October, the insulin producer said it expected high single-digit growth in sales and operating profit in 2014 in local currencies.
"It is disappointing that they do not raise EBIT guidance for 2014 further, so I think the market will react negatively to the report. But it is no catastrophe," analyst Michael Friis Jorgensen from Alm. Brand Bank said.
Measured in Danish crowns Novo sees 2014 sales of between around 87.33 billion and 89.84 billion Danish crowns ($16.43 billion), which is below analysts average expectation of a 2014 sales of 90.31 billion crowns.
The company said it had appointed head of sales and production Kaare Schultz as chief operating officer, a role in which he will work closely with chief executive Lars Rebien Sorensen.
Operating profit fell to 7.35 billion Danish crowns ($1.34 billion) in the fourth quarter, missing forecasts in a Reuters poll [ID:nL5N0KY0LB].
Novo's board proposed a dividend of 4.5 crowns per share and a 12-month share buyback programme of up to 15 billion crowns.
(Reporting by Teis Jensen and Shida Chayesteh; Editing by John Stonestreet and Jane Merriman)
