Lower costs lift Richter earnings

Telco

First-quarter net income of Hungarian drugmaker Gedeon Richter rose 61% to HUF 15 bln from the same period a year earlier as costs fell, an earnings report published today reveals.

Earnings per share came to HUF 81 for the period. Revenue edged down 0.7% to HUF 87.7 bln. Direct cost of sales fell almost 3% to HUF 32.1 bln, widening Richterʼs margin and lifting gross profit 0.6% to HUF 55.5 bln.

The first-quarter net income of Hungarian drugmaker Gedeon Richter rose 61% to HUF 15 bln from the same period a year earlier as costs fell, an earnings report published today reveals.

Other costs also fell: sales and marketing expenses were down 5.6% at HUF 25.7 bln and spending on R&D dropped 5.8% to HUF 10.9 bln. Operating profit climbed nearly 37% to HUF 13.9 bln.

Richter booked a HUF 2.3 bln financial gain in Q1, compared to a HUF 1.1 bln loss in the base period, though HUF 1.5 bln of the income was unrealized.

Capital expenditures, including payments for intangible assets, were down about 40% at HUF 3.3 bln.

In a breakdown of revenue by region, Richter said sales in Hungary rose 10.5% to HUF 10.7 bln, while sales in other European Union countries were practically flat at HUF 35.2 bln.

In Hungary, Richter had a market share of 5.3%, making it the third largest player. However, it was runner-up in the retail prescription drug segment, with 7.4% market share.

Sales in the CIS dropped more than 14% to HUF 27.8 bln. Sales in Russia fell about 12% to HUF 17.3 bln and sales in Ukraine plunged 49.5% to HUF 2.2 bln.

Richter noted that Russian sales, calculated in rubles, increased as it raised prices for about half of the drugs it sells there by around 25% during the period. It added that the ruble had weakened more than 45% to the euro year-on-year.

Sales in the U.S. were up about 32% at HUF 4.4 bln, sales in China increased 16.5% to HUF 3.7 bln and sales in Latin America climbed almost 22% to HUF 2.3 bln.

Richter had total assets of HUF 739.5 bln at the end of March, up 2.7% from the end of last year. Net assets rose 4.7% to HUF 587.9 bln during the period.

 

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