Roche Holding Stands by Guidance for 2023

by Warren Seah

Roche Holding, the Swiss pharmaceutical giant, has reiterated its guidance for 2023 despite experiencing lower sales of Covid-19 related products in the first half of this year. The company reported a drop in sales for the first half, citing weakness in its diagnostics division and the negative impact of foreign-exchange rates. However, Roche remains optimistic about future growth.

Sales Decline in the First Half

Roche saw its sales decrease to 29.78 billion Swiss francs ($33.01 billion) in the first half of the year, compared to CHF32.295 billion during the same period last year. The decline was primarily attributed to a 29% plunge in sales at the diagnostics division, which had experienced high demand during the pandemic. On the other hand, revenue at the pharma divisions increased by 1%. When measured at constant currency, the overall revenue decline was minimized to 2%.

Impact on Profitability

Net profit for the half year dropped to CHF7.14 billion from CHF8.53 billion in the previous year. Core earnings per share also fell to CHF10.10 from CHF11.76, while core operating profit declined by 14% to CHF10.91 billion. These results were slightly below analyst expectations, with FactSet predicting sales of CHF30.15 billion and core EPS of CHF10.34.

Future Outlook

Despite the challenges faced in the first half, Roche remains confident in its future prospects. The company expects a low single-digit sales decline at constant currency, along with a corresponding decrease in core EPS. However, excluding the impact of Covid-19 products, Roche anticipates solid sales growth in both divisions.

In conclusion, Roche Holding acknowledges the impact of Covid-19 on its sales performance in the first half of this year. Nevertheless, the company remains steadfast in its outlook for the future, with a focus on overcoming these challenges and achieving continued growth.

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