Roche Backs 2023 Outlook Despite Weaker Covid-19 Demand Hurting 1st Half Sales, Profit
July 27 2023 - 1:52AM
Dow Jones News
By Adria Calatayud
Roche Holding on Thursday backed its guidance for 2023 after
lower sales of products related to Covid-19 in the first half
weighed on its top and bottom lines.
The Swiss pharmaceutical giant said sales for the first half of
the year dropped to 29.78 billion Swiss francs ($33.01 billion)
from CHF32.295 billion in the same period last year, hit by
weakness in its diagnostics division that saw booming demand during
the pandemic. Sales at the diagnostics division plunged 29%, and
revenue at the pharma divisions was up 1%.
Foreign-exchange rates also hurt sales, and Roche said its
revenue decline was smaller, at 2%, when measured at constant
currency.
Net profit for the half year was CHF7.14 billion, down from
CHF8.53 billion a year before.
Roche said core earnings per share fell to CHF10.10 from
CHF11.76, while core operating profit declined 14% to CHF10.91
billion.
Analysts polled by FactSet expected sales to come in at CHF30.15
billion and core EPS to be CHF10.34.
Looking ahead, the company continues to expect a sales decline
of low single percentage digits at constant currency, with a fall
in core EPS along those lines. Excluding Covid-19 products, Roche
expects solid sales growth in both divisions.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
July 27, 2023 01:37 ET (05:37 GMT)
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