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.