Hungarian drug maker Richter Gedeon’s Q3 net profit soared 77% as a drop in operating profit was more than offset by higher than expected financial income on foreign exchange gains.
Net profit rose to HUF 14.29 billion ($66.88 million) from 8.06 billion a year earlier and came well above analysts’ expectation for HUF 11.5 billion in a Reuters poll. The company said the world financial turbulence will impact on Q4 sales, particularly in Russia and Ukraine, but sales in the key US market are looking better than earlier. “In Russia, sales growth will slow but we’re more worried about Ukraine, we need to be very cautious there,” CEO Erik Bogsch told a news conference.
In Russia, Richter now sees flat sales growth for the year in euro terms after forecasting 10% growth just three months earlier, but for the United States the company lifted its full-year target to 5% growth after earlier forecasting flat sales.
In Ukraine, full-year sales are seen up 15% after a 37% rise in the first nine months. In Hungary, where Richter has struggled with an economic slowdown, government austerity and regulatory problems, the group still sees a 6% annual sales drop, Bogsch said. At 0915 GMT, Richter shares traded down 2% at HUF 29,950.
In the Q3, Richter’s bottom line received a boost in the form of a HUF 5.73 billion financial income, mostly on non-realized foreign exchange gains on outstanding receivables and debt after the forint fell sharply versus the euro and the dollar in the closing weeks of the quarter. (Reuters)