Sanofi (NYSE:SNY) Q1 2019 Earnings Conference Call - Final Transcript

Apr 26, 2019 • 08:30 am ET


Sanofi (NYSE:SNY) Q1 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to today's Sanofi First Quarter 2019 Earnings Conference Call. I would now like to turn the call over to George Grofik, Vice President, Head of Investor Relations at Sanofi. Thank you, and please go ahead, sir.

George Grofik

Good morning, and good afternoon to everyone on the call. Thank you for joining us to review Sanofi's first quarter results. As usual, you can find the slides of this call on the Investors page of our website at

Moving to Slide 2. I would like to remind you that information presented in this call contains forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. I refer you to our Form 20-F document on file with the SEC and also our Document de Reference for a description of these risk factors.

With that, please advance to Slide 3, and let me introduce our speakers today. With me are Olivier Brandicourt, Chief Executive Officer; Jean-Baptiste de Chatillon, Executive Vice President and Chief Financial Officer. Olivier will discuss key highlights, after which Jean-Baptiste will review the financials.

Joining us for Q&A will be Olivier Charmeil, Executive Vice President, China and Emerging Markets; Karen Linehan, Executive Vice President, Legal Affairs and General Counsel; and David Loew, Executive Vice President, Sanofi Pasteur; Alan Main, Executive Vice President, Consumer Healthcare; John Reed, Executive Vice President and Global Head of R&D; Bill Sibold, Executive Vice President, Sanofi Genzyme; and Dieter Weinand, Executive Vice President, Primary Care.

And with that, I'd like to turn the call over to Olivier.

Olivier Brandicourt

Thank you, George. Good morning, and good afternoon to everyone, and welcome to our first quarter earnings conference call. On Slide 5, Sanofi delivered strong first quarter results. At constant exchange rates, sales and business EPS grew by 4.2% and 9.4%, respectively. Sales growth on a constant structure basis was close to 4%, demonstrating the new growth phase which began in the third quarter of last year.

Slide 6 breaks down our first quarter sales performance to show the drivers of our organic growth. You can see that as in the past 2 quarters, our growth drivers continue to move and offset the impact of US LoEs. On Slide 7, you can see the sales picture across our 5 GBUs. This was a strong quarter overall with double-digit growth in each of Specialty Care, Vaccines and our new China & Emerging Markets GBU. Elsewhere, CHC delivered on a modest growth as a result of the headwinds we highlighted on our Q4 earnings call, while Primary Care continue to face pricing pressure in the US and Europe.

On Slide 8, is our new you GBU structure allowed us to manage the impact of LOEs in Primary Care and the weaker CHC performance in mature markets. If we look at first quarter sales by geography, emerging markets continue to be an important drivers, which sets up by 13.6%, highlighted by the strong contribution from