Richter Q3 profit doubles as financial loss falls
Image by LaMography/Moni Lazar
Hungarian drugmaker Gedeon Richterʼs third-quarter net income rose 99% year-on-year to HUF 13.6 bln as financial losses narrowed, an earnings report released early this morning shows, according to Hungarian news agency MTI.
(Photo: LaMography/Moni Lazar)
Richterʼs net profit climbed 105% to HUF 13.9 bln in Q3, over the HUF 12.4 bln estimate of analysts polled by Portfolio.hu.
Earnings per share stood at HUF 74.
Revenue rose 5% to HUF 96.7 bln, while direct cost of sales edged up just 2% to HUF 40.4 bln, lifting gross profit 7% to HUF 56.4 bln. However, higher sales and marketing costs, as well as administration costs, led operating profit to drop 16% to HUF 17.4 bln.
Richterʼs bottom line was lifted by a big decline in financial losses, which dropped to HUF 1.7 bln from HUF 13.0 bln in the base period.
Financial profit also had a marked impact on Richterʼs earnings in Q1-Q3, the report shows. The increase in direct cost of sales outpaced revenue growth during the period, causing gross profit to fall 1% to HUF 168.1 bln. Operating profit dropped 13% to HUF 45.4 bln on an increase in sales and marketing costs and a write-off related to the withdrawal of the contraceptive patch Lisvy.
At the same time, net income edged down just 1% to HUF 43.9 bln as Richter booked a HUF 2.8 bln financial gain, compared to a HUF 5.0 bln loss in the base period, as the ruble firmed against the forint. Sales in Russia accounted for a little more than one-fifth of Richterʼs revenue in Q1-Q3.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.