Roche (ROG) Q1 2021 earnings summary

Executive summary

• Q1 sales were CHF 14.9bn, up 3% at CER despite COVID-19 disruption and biosimilar erosion in Pharmaceuticals; Diagnostics growth drove the increase.

• New products reached 50% of Pharmaceuticals sales, supporting portfolio renewal amid declines in established brands.

Financial highlights

• Group sales were CHF 14.9bn versus CHF 15.1bn a year earlier; reported change was -1% and CER growth was 3%.

• Pharmaceuticals sales were CHF 10.6bn, down 9% at CER; Diagnostics sales were CHF 4.3bn, up 55% at CER.

• Negative currency translation, driven particularly by the USD, reduced reported sales growth; Q1 CER growth was 2.9%.

Outlook and guidance

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

• Core EPS growth expected broadly in line with sales growth; dividend expected to increase further in Swiss francs.

• Currency impact was expected to lessen as 2021 progressed; assuming 31 March rates remained stable, FY currency effects on sales, core operating profit and Core EPS were projected to improve versus Q1.