Roche sales rebound as Covid-19 tests power growth

Roche's first-half net profit rose 2 per cent to 8.22 billion Swiss francs ($8.96 billion) and sales increased by 8 per cent at constant exchange rates to a better-than expected 30.71 billion francs as the Swiss drugmaker benefited from demand for Covid-19 tests.

It maintained its full-year forecast for sales to grow at a low- to mid-single-digit rate at constant exchange rates, with core earnings per share growing about the same as sales.

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"Roche expects to increase its dividend in Swiss francs further," it added.

Diagnostics division sales grew 51% in the first half due to high demand for Covid-19 tests and strong momentum in routine testing, Roche said, helping to compensate for a 3% decline in pharmaceuticals sales, although drug sales rose in the second quarter after a weak start to the year.

"We have achieved good results in the first half, primarily thanks to the demand for our new medicines and Covid-19 tests. The Pharma Division began to grow again in the second quarter. The base diagnostics business shows strong momentum. As expected, demand for Covid-19 tests peaked in the second quarter," Chief Executive Severin Schwan said.