Swiss pharmaceutical company, Roche on Thursday reported that its net income in the first half of 2023 declined to 7.56 billion Swiss francs (8.79 billion dollars).
This amount was different from 9.16 billion francs of the previous year.
Profit per share was 8.87 francs compared to 10.54 francs 12 months earlier.
Core operating profit was 10.91 billion francs compared to 12.67 billion francs.
The company said the core earnings per share decreased 5 per cent, driven by lower demand for COVID-19 products and a base effect from a patent settlement in 2022.
First half revenue was 30.62 billion Swiss francs, compared to 33.90 billion francs last year.
Core sales were 29.78 billion Swiss francs, down from 32.29 billion francs.
The company said a 2 per cent decline in group sales was driven by the 23 per cent fall in sales in the Diagnostics Division.
This followed the sharp decline in demand for COVID-19-related tests.
Excluding COVID-19 products, first-half group sales increased by 8 per cent at constant exchange rates.
Pharmaceuticals Division sales grew by 8 per cent to 22.7 billion francs due to continued high demand for newer medicines.
“In the first half of 2023, sales in the base business of both our divisions grew strongly, largely offsetting the impact of declining demand for COVID-19 products,’’ Roche CEO Thomas Schinecker said.
Due to the sharp decline in sales of COVID-19 products, Roche expected a decrease in group sales in the low single digit range.
Excluding the COVID-19 sales decline, Roche anticipates solid sales growth in both divisions’ base business in 2023.
