Novartis sales increase marginally in first six months

Sales by the Swiss-based Novartis Group increased by 1 percent in the first half of the year to total SFr16.3 billion ($10.8 billion), the company announced Thursday.

Sales by the Swiss-based Novartis Group increased by 1 percent in the first half of the year to total SFr16.3 billion ($10.8 billion), the company announced Thursday.

The pharmaceuticals giant said that the increase in local currencies also amounted to 1 percent, adding that prospects were not much better for the second half of the year.

The marginal increase was due to the fact that the Agribusiness Division — which focusses on crop protection, animal health and seeds — suffered a setback of 9 percent in local currencies.

The setback was due to “adverse market condition,” according to a company statement.

The negative showing was only just compensated by a 6 percent growth in the Healthcare Division and 8 percent in the Consumer Health sector.

Healthcare mainly includes Novartis’ pharmaceuticals products and Consumer Health focuses, amongst other products, on nutritionally enhanced foods and beverages.

As to the difficulties in the Agribusiness sector, Novartis said the setback was due to a decline in crop protection, heavy price pressure in the seeds sector, and a squeeze in the farm animal segment due to low commodity prices.

Novartis said it had already launched Agribusiness reforms aimed a reducing costs, invigorating marketing efforts and focusing on the most promising products.

The planned reduction of 1,100 jobs worldwide — already announced by Novartis — would generate savings to the tune of SFr100 million ($66.6 million), the company said, adding that the full effect of the reduction would only begin to show in two years.


From staff and wire reports.