Roche Expects Slower FY22 Sales Growth On Lower Demand For COVID-19 Tests

Roche Holdings AG's RHHBY FY21 sales increased 8% Y/Y (9% on a constant currency basis) to CHF 62.8 billion.

  • Core operating profit gained 2% to CHF 21.9 billion. Core EPS - diluted increased 3% to CHF 19.81. 
  • Pharmaceuticals Division sales increased 1% (constant currency 3%) to CHF 45.04 billion on strong demand for newly launched medicines more than offsets impact of biosimilars.
  • The Company saw earnings edge higher in 2021 as demand for COVID-19 diagnostic tools and new prescriptions for drugs such as Hemlibra against hemophilia and cancer immunotherapy Tecentriq offset a sales decline in older cancer drugs.
  • Diagnostics Division sales grew 29% to CHF 17.76 billion on strong momentum in base business and continued high demand for COVID-19 tests.
  • Guidance: For FY22, Roche expects COVID-19 medicines and diagnostics sales to decrease by about CHF 2 billion to around 5 billion.
  • Roche guided for currency-adjusted 2022 sales to be flat or grow in the low-single digits, below last year's 9% gain because it expects demand for its COVID-19 medicines and diagnostics to decrease.
  • It aims for core earnings per share to grow in the "low to the mid-single-digit" percentage range at constant exchange rates this year, including the accretive effect of the recent repurchase of shares previously held by Novartis AG NVS
  • Dividend: The Company proposed raising its dividend to CHF 9.30 per share.
  • Price Action: RHHBY shares closed at $48.77 on Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: BiotechEarningsNewsGuidanceHealth CareGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!