NVS Q1 2017 Earnings Report — Novartis AG Revenue & Financial Results | Market Cap Arena

Q1 2017 Earnings

Reported March 30, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2017	Q4 2016	Q1 2016	QoQ Change	YoY Change
Revenue	$11.8B	—	$11.8B	—	-0.2%
Op. Income	$1.9B	—	$2.5B	—	-21.6%
Gross Margin	65.2%	—	64.3%	—	0.8pp
Net Margin	14.1%	—	17.0%	—	-2.9pp
EPS (Diluted)	$0.70	—	$0.84	—	-16.7%
Free Cash Flow	$1.3B	—	$833M	—	57.5%

Revenue Flow

Item	Amount
REVENUE	$11.8B
Cost of Revenue	$4.1B
GROSS PROFIT	$7.7B
R&D Expenses	$2.2B
Selling & Marketing	$3.0B
General & Administrative	$483M
SG&A Expenses	$3.5B
Other Expenses	$117M
Operating Expenses	$5.8B
Cost & Expenses	$9.9B
OPERATING INCOME	$1.9B
Interest Income	$0
Interest Expense	$180M
Other Income/Expenses	$25M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$282M
Net Income from Continuing Ops	$1.7B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.7B
D&A	$1.8B
EBIT	$2.1B
EBITDA	$2.1B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$11.8B
Cost of Revenue	$4.1B
GROSS PROFIT	$7.7B
R&D Expenses	$2.2B
Selling & Marketing	$3.0B
General & Administrative	$483M
SG&A Expenses	$3.5B
Other Expenses	$117M
Operating Expenses	$5.8B
Cost & Expenses	$9.9B
OPERATING INCOME	$1.9B
Interest Income	$0
Interest Expense	$180M
Other Income/Expenses	$25M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$282M
Net Income from Continuing Ops	$1.7B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.7B
D&A	$1.8B
EBIT	$2.1B
EBITDA	$2.1B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.7B
Depreciation & Amortization	$1.8B
Stock-Based Compensation	$0
Deferred Income Tax	$282M
Other Non-Cash Items	-$53M
Change in Working Capital	-$1.3B
OPERATING CASH FLOW	$2.0B
Capital Expenditure	-$733M
Acquisitions (Net)	-$659M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$291M
NET CASH FROM INVESTING	-$1.1B
Net Debt Issuance	$7.2B
Common Stock Repurchased	-$1.3B
Common Dividends Paid	-$6.5B
Other Financing Activities	$165M
NET CASH FROM FINANCING	-$388M
FREE CASH FLOW	$1.3B
Net Change in Cash	$565M

Balance Sheet

Item	Amount
Cash & Equivalents	$7.6B
Short-Term Investments	$665M
Net Receivables	$8.2B
Inventory	$6.6B
Other Current Assets	$2.7B
TOTAL CURRENT ASSETS	$25.8B
PP&E (Net)	$15.8B
Goodwill	$31.2B
Intangible Assets	$31.5B
Long-Term Investments	$27.7B
Tax Assets	-$26.6B
Other Non-Current Assets	$26.6B
TOTAL NON-CURRENT ASSETS	$106.2B
TOTAL ASSETS	$132.0B
Account Payables	$4.6B
Short-Term Debt	$8.3B
Deferred Revenue	$0
Other Current Liabilities	$13.4B
TOTAL CURRENT LIABILITIES	$26.3B
Long-Term Debt	$22.9B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$15.1B
TOTAL NON-CURRENT LIABILITIES	$38.0B
TOTAL LIABILITIES	$64.3B
Common Stock	$67.6B
Additional Paid-In Capital	$0
Retained Earnings	$0
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$67.6B
Minority Interest	$60M
TOTAL EQUITY	$67.6B
TOTAL LIABILITIES & EQUITY	$132.0B
Total Debt	$31.3B
Net Debt	$23.7B