Roche (ROG) Q1 2022 earnings summary

Executive summary

• Q1 Group sales rose 11% at CER to CHF 16.4bn, driven by Pharmaceuticals (+6%) and Diagnostics (+24%).

• Portfolio rejuvenation continued with Vabysmo and Susvimo launches, Diagnostics growth in its base business, and multiple late-stage pipeline milestones ahead.

Financial highlights

• Group sales were CHF 16.445bn versus CHF 14.930bn YoY; reported growth was 10%, or 11% at CER.

• Sales growth contributions at CER included Diagnostics base business +CHF 749m, Pharma underlying business +CHF 736m, Ronapreve +CHF 304m, and AHR erosion -CHF 568m.

• Currency reduced sales growth by 1.0 percentage point; negative EUR and JPY impacts were partly offset by USD.

Outlook and guidance

• FY 2022 guidance was confirmed: Group sales growth stable to low-single digit and Core EPS growth low- to mid-single digit, both at CER.

• Core EPS guidance includes 4.4 percentage points of accretion from the share repurchase; dividend expected to increase further in Swiss francs.

• Sales growth expected at high-single digit excluding COVID-19 sales and AHR erosion; outlook assumes Delta/Omicron represent the last major wave.

• Outlook assumes ~CHF 5bn of COVID-19 sales and ~CHF 2.5bn of FY AHR biosimilar erosion; Pharma new products and Diagnostics base business are key drivers.