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Investing.com -- Sanofi (EPA:SASY) shares fell more than 2% on Thursday after the pharmaceutical and healthcare company reported second-quarter profit that came in below expectations, even as sales topped forecasts, with rising operating expenses weighing on margins.
The French company posted business earnings per share of €1.59, missing the €1.65 consensus estimate. Business operating income declined 2% year over year to €2.46 billion, below the €2.58 billion analyst forecast.
Revenue rose 6% to €9.99 billion, beating the €9.79 billion average estimate. Growth was driven by Dupixent, Altuviiio, and vaccines including Beyfortus.
Dupixent sales rose 16% to €3.83 billion, 2% above consensus, despite some pressure in China from the national reimbursement drug list renewal. Altuviiio reported 84% growth to €291 million, coming in 16% ahead of expectations.
Vaccine sales increased 6% to €1.21 billion, 5% above forecast, lifted by a sharp rise in Beyfortus revenue and late-season influenza vaccine demand.
Beyfortus sales reached €72 million, up from €18 million a year earlier. Flu vaccines brought in €141 million, a 23% increase.
Total (EPA:TTEF) revenue was €10.74 billion, up from €10.16 billion a year earlier. Adjusted gross profit rose 8% to €7.74 billion, with gross margin improving to 77.5% from 76%.
R&D expenses increased 15% to €1.91 billion. Selling and general costs rose 4% to €2.28 billion.
Other operating income grew 37% to €1.12 billion, driven in part by profit-sharing payments to Regeneron (NASDAQ:REGN) from the monoclonal antibody partnership. Business net income fell 1% to €1.94 billion.
Sanofi raised its full-year sales growth guidance to high single digits at constant exchange rates, up from a prior mid-to-high single-digit range.
However, it flagged a larger foreign exchange impact of -4%, which implies full-year sales between €41.6 billion and €43.2 billion, below the consensus forecast of €43.6 billion.
The company now expects business EPS between €7.56 and €7.70 for 2025, based on a 6% FX impact and including costs from newly acquired businesses.
The consensus estimate stands at €7.97. Sanofi said its effective tax rate remains broadly stable, with 2024 at 19.8%, in line with the 19.9% consensus.