Higher revenue, stable costs lift Richter profit 63% in Q2

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The second-quarter net income of Hungarian drugmaker Richter rose 63% to HUF 22.5 bln from the same period a year earlier as revenue climbed and direct cost of sales was flat, an earnings report published today reveals, according to Hungarian news agency MTI.

Profits were well over the HUF 10.6 bln estimate of analysts polled by Portfolio.hu.

Earnings per share came to HUF 122.

Richterʼs consolidated revenue rose 11% to HUF 96.3 bln, while direct cost of sales was practically unchanged at HUF 34.9 bln.

Sales and marketing expenses fell about 1% to HUF 25.3 bln and R&D costs slipped almost 6% to HUF 10.1 bln.

Higher revenue and lower costs lifted Richterʼs bottom line for the first half as well, the IFRS report shows.

Revenue in H1 climbed 5% to HUF 184.0 bln, while direct cost of sales fell more than 1% to HUF 67.1 bln.

Sales and marketing expenses declined 3% to HUF 51.0 bln and R&D spending was down nearly 6% at HUF 21.0 bln.

Net income rose 62% to HUF 37.5 bln.

CAPEX came to HUF 8.4 bln in H1, a little less than half of that in the base period.

In a breakdown of sales by region, Richter said domestic turnover rose almost 6% to HUF 19.5 bln and sales in other EU countries were up 4% at HUF 70.4 bln. Sales in the CIS slipped about 1% to HUF 64.8 bln as turnover in Russia rose 6% to HUF 42.5 bln but sales in Ukraine fell 55% to HUF 3.9 bln.

Sales in the United States rose 37% to HUF 8.7 bln and sales in China were up 35% at HUF 9.1 bln. Sales in Latin America increased 24% to HUF 4.4 bln.

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