As Hungary’s largest pharmaceutical company with its headquarters in the country, the firm has succeeded in domestic and international markets over the past three decades, significantly supported by its presence on the stock exchange. Today, Richter is one of the BSE’s four leading blue-chip issuers in the premium category and the third largest player in terms of market capitalization.
“Our company’s 30-year presence on the stock exchange is an excellent example of how solid fundamentals, continuous innovation and an independent capital market presence can contribute to a company’s success,” Richter’s Gábor Orbán said after the bell-ringing ceremony.
“We have faced many challenges over the past decades, but our listing on the stock exchange has continually reaffirmed our belief that we are on the right track as a global pharmaceutical company and that we must be bold in moving forward with our business vision and operational efficiency to help more patients around the world,” he said.
“We are proud that our operations represent the greatest domestic value-added and believe that the next 30 years will be as productive and meaningful as the first 30 were,” Orbán added.
Underlining that success, the firm announced its consolidated after-tax profit had climbed 42% year-on-year to HUF 175.9 billion in Q1-Q3, boosted by wider margins and a financial gain, according to an earnings report released on the website of the Budapest Stock Exchange on Nov. 12.
Revenue increased 6% to HUF 636.4 bln. The cost of sales fell 7% to HUF 196.8 bln, lifting gross profit 12% to HUF 439.6 bln. R&D spending increased 18% to HUF 70.2 bln. Milestone income reached HUF 6.6 bln. Operating profit climbed 32% to HUF 190.2 bln.
Richter booked a net financial gain of HUF 5.8 bln, compared to a net loss of HUF 18.4 bln in the base period. Earnings per share came to HUF 959 for the period. Pharma revenue reached EUR 1.6 bln in Q1-Q3. The blue-chip affirmed its full-year guidance for pharmaceutical revenue of EUR 2.15 bln-2.25 bln and operating profit of EUR 725 million-750 mln at a constant exchange rate.
The company’s history began in 1901 when Hungarian chemist Gedeon Richter (born Sep. 23, 1872) founded his own factory in Budapest. The company became one of the leaders of the Hungarian pharmaceutical industry, pioneering the production of insulin and disinfectants, among other things.
It retained its leading role in the second half of the 20th century, and after the fall of communism, its growth accelerated, particularly in Central and Eastern Europe, as it began to expand abroad.
Today, Richter says it is the region’s leading pharmaceutical company, supplying products to around 100 countries worldwide, with a presence in 50 countries, eight production plants, 19 representative offices and 41 marketing subsidiaries. The company is a significant player in developing innovative, original medicines for neuropsychiatry, gynecology and biosimilars.
Its stock market presence, which began in 1994, has played a significant role in these successes. Richter is now one of the largest issuers, with a market capitalization of more than HUF 2 trillion. In addition to BSE’s primary index, the BUX index, the firm is also part of the Central European Blue Chip Index (CETOP), which reflects the performance of the companies with the most significant market value and turnover in the region. In October 2024, its shares reached a historic high on the BSE at HUF 11,260.
“It is extremely inspiring when a company of this size and importance can celebrate an anniversary on the Budapest Stock Exchange. Richter’s story is an example of the important role that capital market presence can play in the growth and international success of a company,” noted Richárd Végh, CEO of the Budapest Stock Exchange.
“Over the decades, the company has grown from a medium-sized domestic company into a major international corporation and a true national champion. Richter’s development also illustrates the strength and potential of the Hungarian stock market,” Végh said.
“We congratulate Richter on this anniversary, and we trust that the flagship of the Hungarian pharmaceutical industry will continue to contribute to the growth of the Hungarian and regional economies with outstanding results,” he added.
This article was first published in the Budapest Business Journal print issue of November 15, 2024.
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