Richter issues profit warning on weaker rouble
Hungarian drugmaker Gedeon Richter on Tuesday issued a profit warning because of the weaker rouble. Richter said the devaluation of the rouble was expected to "negatively impact" fourth quarter earnings.
"Assuming that the current exchange rate prevails, a substantial one-off financial loss is expected to occur on the year-end reassessment of the rouble denominated trade payables," the company said.
Richter said its management was closely following developments in the Russian economy and would make all efforts possible to minimize the negative impacts on the company's performance.
Richter's sales in Russia accounted for just under one-quarter of total revenue, calculated in forints, in Q1-Q3, the company's last earnings report shows.
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