Investing.com -- Roche (SIX:RO) on Thursday said it expects high single-digit growth in core profit for 2025, following a strong performance in 2024 driven by strong sales in both its pharmaceuticals and diagnostics divisions.
The Swiss healthcare giant projects core earnings per share to grow in the high single-digit range at constant exchange rates, buoyed by increased demand for its innovative medicines and diagnostic solutions.
Roche forecasts mid-single-digit sales growth for 2025 and expects continued profitability.
They reaffirmed their commitment to increasing dividends, which would be the 38th consecutive annual increase, subject to shareholder approval.
The outlook comes after Roche reported a 7% increase in overall sales in 2024, reaching CHF 60.5 billion.
The Pharmaceuticals Division, which accounted for the majority of revenue, saw an 8% rise in sales, driven by strong performances from key medicines such as Vabysmo, Phesgo, Ocrevus, and Hemlibra.
Meanwhile, the Diagnostics Division registered a 4% increase, reflecting solid demand for immunodiagnostic and molecular solutions despite a decline in COVID-19-related sales.
Roche’s growth momentum is underpinned by the continued success of its newer therapies, particularly in oncology, neurology, and ophthalmology.
Vabysmo, a treatment for severe eye diseases, generated CHF 3.9 billion in revenue, maintaining its position as a top performer.
The company also saw solid gains in multiple sclerosis treatment Ocrevus and breast cancer drug Phesgo, which have steadily gained market share.
The company’s profit trajectory has also been supported by strategic cost management and operational efficiency.
Core operating profit increased by 14% in 2024, reaching CHF 20.8 billion, while core earnings per share rose by 7%.
Despite currency headwinds and the expiration of exclusivity for certain key drugs, Roche remains confident in its ability to navigate market challenges.
With a diversified portfolio and a focus on innovation, the company is well-positioned to achieve its targeted profit growth in 2025.