Roche posts record profits

The pharmaceuticals company, Roche, has posted record results, with net profit for 1999 up 31 per cent. Excluding exceptional factors net profit was up 15 per cent, broadly in line with analysts' expectations.

The pharmaceuticals company, Roche, has posted record results, with net profit for 1999 up 31 per cent to SFr 5.764 billion. Excluding exceptional factors net profit was up 15 per cent to just over SFr 5 billion. This was broadly in line with analysts’ expectations.

Exceptional factors included the sale of part of Roche’s stock in the United States company, Genentech, which netted the group SFr 4.5 billion. This more than wiped out SFr 2.4 billion in penalties incurred through the vitamin pricing scandal which broke in the US last year.

Group turnover grew 12 per cent to SFr 27.6 billion. Roche said its pharmaceuticals division consolidated its position in the world market with two products, the obesity drug, Xenical, and Tamiflu, which helps fight off influenza.

Its diagnostics division also saw a strong sales increase of 14 per cent. The vitamins and chemical products division performed less well, posting one per cent sales growth, with perfumes up five per cent.

Roche is proposing an increase in its share dividend from SFr 87 to SFr 100.

It will also pay out a special dividend worth SFr15.39, consisting of a share in Givaudan worth a nominal SFr10 and a SFr5.39 withholding tax to be paid directly by Roche. Roche said it expected solid growth in the current year as well.

swissinfo with agencies