Richter revenue outlook worsens slightly


Hungarian drugmaker Gedeon Richter expects its revenue – calculated in euros – to fall 6-7% this year, CEO Erik Bogsch said on Thursday, after the company published second-quarter earnings.

Turnover is set to decline on lower sales in Russia, Ukraine and Poland, Bogsch said. Three months earlier, he said sales would fall 6% this year.

Speaking about sanctions against Russia, Bogsch said no step had been taken so far that would have a direct negative impact on the company. He said the main problem was a drop in purchasing power in Russia and Ukraine. Richter's production unit in Russia is expected to play a big role in its business there, which is why capacity is being increased, he said. Richter expects a 5-10% decline in turnover in Russia, calculated in roubles. Three months earlier, the decline was put at 5%.

Sales in Ukraine, calculated in dollars, are set to fall 35%, Bogsch said. Polish sales are expected to decline 10-15%, bigger than earlier expected. In Western Europe, sales are seen rising 10-15%, while sales in new EU member states stagnate. Western states now account for 46% of the company's turnover in the EU, up from one-third in previous years, Bogsch noted.

Western European sales make up 13% of total turnover, up from 10% earlier, in line with Richter's strategy. The share of Russian sales in total turnover has fallen to 23% from 29%, Bogsch said. Ukraine's share has slipped to 5% from 6%, though the share in other CIS countries has risen, he added.


POPIHN Raises Forecast for Fuel Consumption Energy Trade

POPIHN Raises Forecast for Fuel Consumption

Hungarian Lawmakers Ratify Finland's NATO Accession Parliament

Hungarian Lawmakers Ratify Finland's NATO Accession

Nolato Partners With Happy at Work HR

Nolato Partners With Happy at Work

Sümeg Castle Reopens History

Sümeg Castle Reopens


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.