Sanofi-Aventis 2009 EPS leaps 18% but slows in 4th quarter; in line with expectations

French drug major Sanofi-Aventis posted fourth-quarter and full-year 2009 financial results this morning with sales and earnings broadly in line with expectations. Net sales for the year were up 6.3% at 29.31 billion euros ($40.06 billion), versus consensus forecasts of 29.40 billion euros. Adjusted earnings per share leapt 18.2% to 6.49 euros on a reported basis (+5.3% at constant exchange rates) vs consensus projections of 6.45 euros.

Commenting on the figures, analysts at Credit Suisse said that all key product sales were in line while other revenues were slightly higher than estimated. A 14.5% increase in vaccine R&D spend was offset by R&D cost savings elsewhere, to leave the overall charge broadly stable. SG&A spend was higher than expectations but this was offset at the bottom line by a lower than anticipated tax charge. The lower tax rate of 28% for fiscal year 2009 is as a result of a new protocol to the US-France tax treaty on dividends which took effect in December 2009 but which applies retroactively to January 1, 2009. It is unclear whether this is an ongoing issue, the analysts noted.

For the fourth quarter of 2009, total revenues came in at 7.36 billion euros, a rise of 8.9% year-on-year, with adjusted EPS at 1.37 euros, an increase of 9.6% (+18.4% CER), the company reported.