Investing.com -- Shares of Ipsen (EPA:IPN) dropped 2.7% as the market reacted to the company’s mixed fourth-quarter results.
Despite reporting a solid 12% increase in total sales at constant exchange rates (CER) for the quarter, which was 3% above consensus, concerns were raised over the sales mix. Ipsen’s core operating income margin for the full year was 32.6%, surpassing consensus by 4%.
The pharmaceutical company’s Q4 product sales reached €905 million, marking an 11% rise year-on-year (YoY) and a 12% increase on a CER basis, which was 3% higher than the market consensus. The growth was primarily driven by strong performance from Somatuline, with Q4 sales of €328 million, beating expectations by 21%.
However, Dysport sales missed consensus estimates by 11%, which the company attributed to adverse shipping issues in Middle East and North Africa (MENA) markets, despite continuous strong demand.
Ipsen’s core operating income for the fiscal year stood at €1,109 million, with core diluted earnings per share (EPS) at €10.27, both exceeding market expectations by 5% and 8%, respectively.
Looking ahead, Ipsen provided guidance for fiscal year 2025, projecting total sales growth of at least 5% CER, with a 1% foreign exchange (FX) tailwind, aiming for a minimum of €3.6 billion in sales. This forecast aligns with consensus estimates, and with an anticipated core operating margin of over 30%—assumed to be 31%—this would indicate a core EBIT of approximately €1,120 million, also in line with market expectations.
RBC commented on the results, stating, "Overall, Ipsen has had a good end to 2024, albeit with a disappointing sales mix, and a 2025 outlook in line with market expectations."
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