Richter Q2 profit falls on financial loss

Telco

Hungarian drugmaker Gedeon Richterʼs second-quarter net income fell 52% year-on-year to HUF 8.4 billion on a big financial loss, an earnings report published early morning shows, according to Hungarian news agency MTI.

Richterʼs revenue climbed 17% to HUF 114.1 bln during the period. Direct cost of sales climbed at a slightly slower rate, rising 15% to HUF 47.4 bln and lifting gross profit by 17% to HUF 66.7 bln.

But the bottom line was hit by an HUF 8.3 bln net financial loss, compared to a net financial gain of HUF 4.9 bln in the base period.

Richterʼs profit was slightly over the estimate by analysts polled by Portfolio.hu. Earnings per share came to HUF 45 for the period.

Financial loss weighs in H1

Richterʼs first-half net income edged down 3% to HUF 28.2 bln, also falling on a financial loss, albeit an unrealized one.

Revenue increased 21% to HUF 226.8 bln. Direct cost of sales rose 17% to HUF 98.0 bln. Gross profit climbed 17% to HUF 128.8 bln.

Richter booked a HUF 3.9 bln net financial loss in H1, compared to a net financial gain of HUF 4.5 bln in the base period.

In a breakdown of revenue by region, Richter said sales in Hungary were flat at HUF 20.2 bln, but sales in other European Union member states rose 24% to HUF 95.1 bln, sales in Russia were up 29% at HUF 51.6 bln and sales in the United States jumped 98% to HUF 13.8 bln. 

Richter noted that sales of the drug Esmya, used to treat uterine cysts, came to EUR 44.1 million in H1. Royalties on sales of Vraylar, the U.S. trademark of Richterʼs antipsychotic cariprazine, reached USD 21.7 mln, and sales of Bemfola, used in fertility treatments, came to EUR 17.6 mln. Richterʼs range of oral contraceptives generated sales of EUR 151.0 mln.

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