Revenues, financial income push Richter Q1 profit up 71%

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Image by LaMography/Móni Lázár

Hungarian drugmaker Gedeon Richterʼs first-quarter net income rose 71% year-on-year to HUF 19.8 billion, lifted by higher revenue, financial income and a tax refund, an earnings report released early today shows, according to Hungarian news agency MTI.

(LaMography/Moni Lazar)

Revenue increased 26% to HUF 112.7 bln. Direct costs of sales rose at a faster rate, climbing 41% to HUF 50.6 bln, but sales and marketing costs, administration expenses and spending on R&D increased at a more moderate pace. Sales and marketing costs were equivalent to a little more than one-quarter of revenue.

Operating profit was up 8% at HUF 15.7 bln.

The bottom line was also lifted by a net financial gain of HUF 4.4 bln, of which HUF 1.9 bln was realized, and a HUF 0.3 bln tax refund.

Earnings per share came to HUF 106 for the period. Net income was over the HUF 15.8 bln estimate by analysts polled by economic news portal portfolio.hu. Capital expenditures doubled to HUF 7.8 bln.

In a breakdown of revenues by region, Richter said sales in Hungary were flat at HUF 10.7 bln, while those in other European Union countries jumped 25% to HUF 47.1 bln. Sales in the CIS countries were up 31% at HUF 37.4 bln, supported by a 44% increase of sales in Russia to HUF 26.7 bln. Sales in the United States nearly tripled to HUF 6.4 bln.

Richter had total assets of HUF 824.3 bln at the end of March, up 1% from the end of 2016. Net assets rose 3% to HUF 704.7 bln during the period and included HUF 634.4 bln of retained earnings.

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