Roche (ROG) Q3 2021 earnings summary

Executive summary

• YTD Sep 2021 sales rose 8% at CER to CHF 46.7bn; Diagnostics growth more than offset flat CER sales in Pharmaceuticals. Guidance was raised to mid-single-digit sales growth.

• New Pharma products generated more than 50% of Pharma sales, helping offset biosimilar erosion; routine testing and COVID-19-related demand supported Diagnostics.

Financial highlights

• YTD Sep sales were CHF 46.7bn, up 6% in CHF and 8% at CER; negative currency effects were driven particularly by USD and JPY, partly offset by EUR.

• Pharma sales were CHF 33.4bn, down 3% in CHF and flat at CER; Diagnostics sales were CHF 13.3bn, up 38% in CHF and 39% at CER.

• Q3 Pharma sales growth was 5% at CER; Diagnostics sales grew 18% at CER despite a high comparison base.

Outlook and guidance

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

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

• Pharma recovery was expected to continue in Q4, with biosimilar impacts expected to flatten in coming quarters; routine testing growth and COVID-19 business were expected to follow similar Q3 patterns.