Swiss pharma major Roche sees net income slump, forecasts 2024 growth

Swiss pharmaceutical company Roche announced net income was down but it expects mid single-digit sales increase for 2024.

Roche reported that its International Financial Reporting Standards (IFRS) net income for fiscal year 2023 declined about 9% to 12.36 billion Swiss francs from 13.53 billion francs last year.

But IFRS net income increased by 7% at constant exchange rates (CER) due to the increase in operating profit and lower income tax expenses.

Core earnings per share was 18.57 francs down from 20.30 francs in the prior year.

Annual group sales decreased 7% to 58.72 billion francs from the prior year.

But group sales grow by 1% at CER, more than offsetting the decline in Covid 19-related sales and biosimilar erosion, and thereby exceeding 2023 guidance.

Excluding Covid 19 products, group sales increase by 8%. Diagnostics division sales were 13% lower due to high demand for Covid 19 tests in 2022. Strong momentum in the diagnostics division's base business continues with an increase of 7%.

The company said its board proposed a dividend increase to 9.60 francs.

Looking ahead for fiscal 2024, Roche expects an increase in group sales in the mid single-digit range at constant exchange rates.

Core earnings per share are targeted to develop broadly in line with sales growth at constant exchange rates, excluding the impact from resolution of tax disputes in 2023.

Roche expects to further increase its dividend in Swiss francs.