Net Profits Rise 16% At Roche In First Half

Swiss pharmaceutical group Roche has announced a rise in net profits of 16% to 2.2 billion Swiss francs ($1.8 billion) in the first six months of 1996. The increase is in the middle of analysts' expectations for the company, which ranged from 14% to 19%. Gross profits were 5.4 billion francs, up 3%, and operating profits were 1.9 billion francs, a rise of 8% on the like, year-earlier period.

The increase in operating profits would have been higher without the effects of reference prices in Japan, lower prices in Italy and price erosion for fragrances, as well as the price cuts in the laboratory business in the USA and the increased costs of marketing in the pharmaceutical industry.

The group said that once again its earnings position has improved, with operating profit rising despite growing pressure on prices in major markets. Roche has previously reported sales growth for the first half of the year of 8% in July (Marketletter July 22).