Novartis first-quarter results easily beat expectations on the back of productivity gains as the company reiterated headline profits targets for the year.
The company - which has a production plant in Ringaskiddy, Co Cork, and offices in Waterford and Dublin - said first-quarter net profit was stable at $1.063 billion against $1.064 billion in the same period a year earlier.
Analysts had forecast a figure between $792-917 million.
Excluding the negative impact from a minority stake held in Roche Holding, net profit would have risen by 27 per cent as net income from associated companies amounted to a $246 million loss, it said. Net financial income fell to $180 million.
Novartis' EBIT rose by 24 per cent to $1.351 billion against $1.086 billion, beating the forecast $1.231 billion to $1.264 billion range thanks to productivity gains and product mix developments. The operating margin consequently reached 23.6 per cent.
The group repeated outlook guidance given when full year results were released back in January that full year net profit and EBIT will beat 2002's figures.
Novartis said both group and pharma sales should grow by about 10p in local currencies during 2003. Earlier guidance only forecast "dynamic" sales growth.
First-quarter group sales rose 21 per cent to $5.721 billion, beating the $5.382 billion to $5.596 billion forecast.