Investor Presentation: First Nine Months of 2020
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Investor presentation
First nine months of 2020
Currency impact on Novo Nordisk's P/L
Novo NordiskⓇ
Operational currency impact
All movements in currencies will directly impact the
individual reported functional lines of the Novo
Nordisk's P&L statement
The currency effect on e.g. operating profit growth is
the difference between the reported growth and the
operating profit growth at CER
Key currencies account for around 65-85% of the total
currency exposure
No hedging effects are included in the operating profit
Sensitivity table gives an indication of gain/loss of a 5%
immediate change in exchange rates compared to
exchange rates on announcement day
PROFIT AND LOSS
2019
2018
(Amounts are in DKK million, except for earnings
per share and dividend per share)
Net sales
Gross profit
Gross margin-
122,021
111,831
101.933
83.5%
•
USD 9 months
94,214
84.2%
Financial currency impact
All gain/losses from hedging contracts are included in the
financial income/expenses
All key currencies are hedged:
Sales and distribution costs
Percentage of sales
31,823
29,397
•
CNY 7 months
26.1%
26.3%
•
JPY 12 months
Research and development costs
14,220
14,805
•
CAD 9 months
Percentage of sales
11.7%
13.2%
.
GBP 10 months
Administrative costs
4,007
3,916
Percentage of sales
3.3%
3.5%
Other operating income, net
600
1152
Operating profit
52,483
47,248
Operating margin
43.0%
42.2%
Financial items (net)
(3,930)
367
Profit before income taxes
48,553
47,615
Income taxes
9,602
8,987
Effective tax rate
19.8%
18.9%
Net profit
38,951
Net profit margin
31.9%
38,628
34.5%
.
Hedging is primarily performed with the use of forward
contracts
Net financials includes hedging gain/loss including the
cost of hedging and the effect from currency gain/losses
of balances in non-hedged currencies
Hedging costs are the interest rate differentials between
DKK and hedged currencies
Note: Example is based on Annual Report 2019View entire presentation