By Cecilia Butini
Novartis AG on Wednesday posted lower sales and profit as it took a hit from generic medicines competition and higher restructuring costs, but increased its dividend for 2022. The Swiss pharma major posted net profit of $ 1.47 billion, down from $ 16.31 billion the year prior, when it benefited from the sale of its investment in Roche Holding AG. Sales declined to $ 12.69 billion from $ 13.23 billion in the fourth quarter of 2021 due to price erosion and negative impact from generic drug competition, the company said. Operating income fell to $ 1.95 billion from $ 2.56 billion the previous year, due to higher restructuring costs. But core operating income rose to $ 4.03 billion from $ 3.82 billion in the fourth quarter of 2021, driven by savings, according to Novartis. Earnings per share also slipped to $ 0.69 from $ 0.75 in 2021. The company raised its dividend for 2022 to 3.20 Swiss francs ($ 3.49) from CHF3.10 in 2021. Looking ahead, the company expects sales excluding Sandoz, which will soon be spun off, to grow low-to-mid single digits, while core operating income excluding Sandoz is expected to grow mid-to-high single digits. Sandoz, Novartis's generic medicines business, is on track to be spun off in the second half of the year. Write to Cecilia Butini at cecilia.butini@wsj.com