Richter raises guidance after Q3 earnings
Hungarian drugmaker Gedeon Richter is standing by guidance for annual revenue growth of 0-5% in 2011, calculated in euro, and it is raising its projection for the increase in operating profit to 18% from 15-16% in August, CEO Erik Bogsch said at a press conference on Tuesday, after the company published its Q3 report.
Richter expects 5-10% revenue growth in Poland, calculated in zloty but stagnation in Romania, Bogsch said. It sees the portfolio of recently acquired Grunenthal adding €45m to revenue in the EU-15, where turnover would otherwise stagnate, he added. Sales in Russia are expected to climb 10-15%, calculated in euro, and dollar-term sales in Ukraine are seen increasing 5-10%. Richter expects sales in other CIS countries to fall about 5%, calculated in dollars. Sales in the US are set to drop 35%.
Richter had revenue of €998.2m in 2010.
Speaking about profit expectations, Bogsch said Q1-Q3 turned out well, apart from one-off factors.
Bogsch said peer Genefar paid Richter $40m in compensation, plus $3.5m in interest and legal costs, for breach of contract in the failed acquisition of Polpharma in October, but the amount - HUF 6.83bn - was booked on the "other revenue" line in Q3.
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