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Richter expects sales to rise 10% this year

Hungarian drugmaker Richter Gedeon Rt expects its unconsolidated sales revenue, in dollar terms, to increase 10% in 2006, CEO Erik Bogsch told a press conference on Monday, after the publication of Richter's annual report for 2005.  

Last year, Richter's unconsolidated net profit increased 17.9% to Ft 44.2 billion. Sales were up 15.9% at Ft 140.9 billion, helped by a 40% increase in sales to CIS countries. Last year's extraordinary jump in sales to CIS countries will not be repeated in 2006, Bogsch said, but sales to the region are still expected to increase more than 10%. He added that Richter had made early deliveries to its Russian unit of $5 million worth of ingredients in order to meet requirements for their inclusion on the list of state-subsidized medicines.

Richter projects a 10% rise in domestic sales this year, and a more than 10% increase in EU sales, in euro terms. The company expects its sales in the US to slip further, Bogsch said. Richter's financial profits from exchange rate changes in the first quarter of 2006 could be Ft 1.5 billion less than in all off last year, depending on the Ft/$ cross rate, Bogsch said.