In This Article:
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Group Sales Growth: 7% overall; 9% excluding COVID-19 impact.
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Core Operating Profit Growth: 14% increase.
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Core Operating Margin: Up 2.1 percentage points.
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Core EPS Growth: 12% excluding tax effects; 7% including tax effects.
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Operating Free Cash Flow: Up 34% to CHF21.2 billion.
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Pharma Sales Growth: 8% at constant exchange rates; 9% excluding Ronapreve.
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Diagnostics Base Business Growth: 8% increase.
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Net Debt: Improved by CHF1.4 billion to CHF17.3 billion.
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Dividend Increase: Increased for the 38th consecutive year.
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IFRS Net Income: Down 19% in constant rates.
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Cash Flow from Operations: CHF20.1 billion reported; CHF21.2 billion in constant rates.
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Pharma Core Operating Profit Margin: 47.7%.
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Diagnostics Core Operating Profit Margin: 16.8% at reported currency.
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Currency Impact on Sales: Minus 4 percentage points.
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Currency Impact on Core EPS: Minus 6 percentage points.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Roche Holding AG (RHHBF) reported a strong overall group sales growth of 7% for 2024, with the base business excluding COVID-19 growing impressively at 9%.
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Core operating profit increased by 14%, and the group core operating margin improved by 2.1 percentage points.
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The company achieved significant milestones, including EU approval for a prefilled syringe and positive readouts in key trials.
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Roche Holding AG (RHHBF) increased its dividend for the 38th consecutive year, demonstrating strong shareholder returns.
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The company has a robust pipeline with 17 blockbuster medicines and plans for multiple Phase III readouts in 2025, indicating strong future growth potential.
Negative Points
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The final impact of COVID-19 sales reduction was CHF1.1 billion, aligning with previous guidance but still a notable decrease.
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The loss of exclusivity (LOE) impact was CHF1 billion, slightly better than guidance but still a significant headwind.
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IFRS net income decreased by 19% in constant rates, impacted by major impairments and higher interest charges.
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Currency fluctuations negatively impacted sales, core operating profit, and core EPS, with a 4% to 6% reduction in each.
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The diagnostics division faced challenges with a decline in near patient care sales by 17%, primarily due to lower COVID-19 rapid antigen testing.
Q & A Highlights
Q: How do you see the launch of a prefilled syringe for high-dose EYLEA affecting Everbismo in 2025? A: We are not seeing any impact from high-dose EYLEA. Our prefilled syringe is materially different, offering one-hand administration, which is crucial for ease of use. Everbismo continues to distinguish itself with efficacy and safety, and we expect it to grow and establish itself further. - Teresa Graham, CEO of Roche Pharmaceuticals