$ROG (-0.63%) Roche is confident of higher profits for the year as a whole.
The pharmaceutical company Roche can look back on a solid first half-year.
Business is going so well that the Group is now raising its profit outlook for the year as a whole.
As $ROG (-0.63%) announced on Thursday, Group sales were on a par with the previous year at 29.8 billion francs. At constant exchange rates, however, it rose by 5 percent. And excluding the Covid-19 sales, sales would have increased by as much as 8 percent. The second quarter in particular showed accelerated growth momentum with an increase of 9% at constant exchange rates.
The important pharma division achieved sales of 22.6 billion Swiss francs in the first half of the year, an increase of 1 percent. Business was driven by sustained high demand for newer drugs. The eye medicine Vabysmo in particular once again proved to be the most important growth driver.
Roche generated sales of 7.2 billion (-1%) with its diagnostics. This smaller division in particular had seen a real boom in coronavirus times due to the tests.
The bottom line was a net profit according to IFRS of 6.7 billion, down 11% on the prior-year period. The decline was due in particular to the impairment of intangible assets for products and technologies in research and development as a result of strategic decisions.
Core operating profit, on the other hand, which analysts primarily look at, rose by 4 percent to 11.3 billion. Roche attributes the increase to the sales trend and its cost management.
Better than expected
With the reported figures, Roche has slightly exceeded analysts' average estimates.
Based on the half-year results, the pharmaceutical company is raising its previous profit outlook for the year as a whole. Core earnings per share are now expected to increase in the high single-digit percentage range (previously: mid single-digit percentage range). Management continues to expect a mid-single-digit percentage increase in sales at constant exchange rates. As always, the Group aims to increase the dividend in Swiss francs
In view of the expected impact of the discontinuation of Covid sales, Roche continues to expect a negative impact on sales of 1.1 billion Swiss francs. By contrast, the erosion of sales due to copycat products is likely to have a somewhat less pronounced impact. Roche has adjusted its forecast here to -1.4 billion. Most recently, the Group was still forecasting 1.6 billion.
Balance sheet data will be published today at 2 pm according to TR.
