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Hungary's Egis says Q2 net profit up 68%

Hungarian drug producer Egis said its fiscal second-quarter net profit rose by 68% as currency weakness across central Europe boosted financial profits and helped the firm offset dropping exports.

Egis's quarterly net profit rose to HUF 5.14 billion ($25.16 million) from HUF 3.05 billion a year earlier as financial income, mostly on currency conversions, more than tripled, the company said.

The result was above the HUF 4.6 billion forint market forecast given by business daily Napi Gazdaság.

Overall revenue rose by 11% mostly on an 11.4% rise in exports but exports calculated in dollars, showed a 16% fall and only currency weakness across central Europe resulted in a higher export value.

Sales in Russia, the company's biggest export market rose by 15% but sales in other former Soviet states fell by 22% while sales in central Europe dropped by 36% on the back of a 49% drop in Poland, Egis said.

Egis added that the drop in Poland was due to pre-shipments completed in earlier quarters and in the first half, Polish sales were up 40%.

In Hungary, the company's home market, sales rose by 10% from a year earlier on a halt in price erosion and some stockpiling.

The company's financial profit more than tripled to HUF 2.74 billion, mostly from a foreign exchange conversions and hedging gains. (Reuters)