Roche (ROG) H1 2021 earnings summary

Executive summary

• H1 sales CHF 30.7bn, up 8% at CER; Diagnostics’ 51% growth more than offset Pharmaceuticals’ 3% decline. Core EPS rose 6% at CER.

• Stronger operating cash flow and continued pipeline investment supported the confirmed 2021 outlook.

Financial highlights

• Sales CHF 30,713m vs. CHF 29,281m; +8% at CER and +5% in CHF.

• Core operating profit CHF 11,652m, +4% at CER and -1% in CHF; IFRS operating profit CHF 10,077m, -5% in CHF.

• Core net income CHF 9,527m, +6% at CER; IFRS net income CHF 8,216m, +2% at CER and -3% in CHF.

• Core EPS CHF 10.56, +6% at CER; growth benefited from product-disposal and equity-security gains.

• Operating free cash flow CHF 8,117m, +71% at CER; free cash flow CHF 6,038m, +99% at CER.

Outlook and guidance

• FY 2021 sales growth guidance confirmed at low- to mid-single digit at CER, based on the current COVID-19 assessment.

• Core EPS growth expected broadly in line with sales growth at CER.

• Further increase in the dividend in Swiss francs expected.