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Richter Q3 profit doubles as financial loss falls

Telco

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.

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