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Financial profit lifts Richter bottom line in Q4

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Hungarian drugmaker Gedeon Richter's fourth-quarter net income jumped 52.6% to HUF 13.7 billion from the same period a year earlier, lifted by financial profit, the company's consolidated IFRS report for the period published Thursday shows. Richter beat an estimate for net profit of HUF 11.6 billion by analysts polled by Portfolio.hu.

Basic earnings per share came to HUF 738 for the period. Richter's revenue fell 6.7% to HUF 83.5 billion. Cost of sales dropped at a slower pace, declining 4.5% to HUF 32.0 billion. Gross profit slipped 8.1% to HUF 51.5 billion. Operating profit dipped 8.8% to HUF 11.0 billion.
Richter's bottom line was lifted by a slight HUF 349 million financial gain, a big improvement over the financial loss of HUF 3.4 billion in the base period. For the full year, Richter's net income edged up 3.0% to HUF 50.8 billion, also on a slight financial gain after a big financial loss in the base period. Full-year revenue was up 6.1% at HUF 326.7 billion. Cost of sales rose 9.1% to HUF 124.9 billion. Gross profit increased 4.4% to HUF 201.8 billion.
Operating profit fell 17.5% to HUF 50.3 billion on higher R+D and marketing costs. R+D spending jumped 35.1% to HUF 38.8 billion. Sales and marketing costs were up 17.2% at HUF 92.7 billion as Richter expanded its sales network in Western Europe and promoted the launch of a new drug for uterine fibroids, Esmya. The bottom line was lifted by a HUF 886m financial gain, compared to a HUF 7.0 billion loss in the base period. In a breakdown of its sales - calculated in forints - for the year, Richter said domestic turnover dropped 13.3% to HUF 30.9 billion, but sales in other European Union member states were up 7.2% at HUF 116.7 billion. Sales in the CIS rose 15.7% to HUF 144.0 billion, but US sales fell 21.4% to HUF 16.1 billion. Richter had total assets of HUF 672.1 billion on December 31, 2012, down 1.4% from twelve months earlier. Net assets rose 6.3% to HUF 520.5 billion. Non-current liabilities were up 9.6% at HUF 94.3 billion.

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