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Richter Q1 profit doubles on FX gains

Hungarian drug maker Gedeon Richter’s first-quarter after-tax profit rose 103% to HUF 21.5 billion from the same period a year earlier, helped largely by a big exchange rate gain as the forint weakened against the dollar, the company said in its consolidated IFRS report.

Profits were over the HUF 17.9 billion estimate by analysts in a poll by portfolio.hu.

Basic earnings per share climbed 111% to HUF 1,159.

Richter booked net financial income of HUF 9.7 billion in Q1, compared to financial income of just HUF 1.0 billion in the same period a year earlier as the forint weakened 41% against the dollar. Realized gains came to HUF 5.6 billion and unrealized income was HUF 4.2 billion.

Revenue rose 8% to HUF 61.3 billion. Sales in Hungary climbed 15% to HUF 8.5 billion because of price cuts in the base period. Sales in the EU inched up 2% to HUF 25.2 billion. Sales in the CIS dropped 6% to HUF 17.7 billion, including a 4% decline to HUF 12.1 billion in Russia. Sales in the US, however, jumped 133% to HUF 6.6 billion.

Cost of sales rose more slowly that revenue, increasing 6% to HUF 26.6 billion and pushing up gross profit 9% to HUF 34.7 billion.

Richter spent 6.7 billion on R&D in Q1, 41% more than in the same period a year earlier.

CAPEX rose to HUF 3.4 billion from HUF 2.4 billion and included HUF 763 million spent on the development of biotechnology R&D facilities and manufacturing capacity.

Pre-tax profit increased 96% to HUF 22.4 billion.

Consolidated total assets came to HUF 420.6 billion on March 31, 2009, 16% more than twelve months earlier.

Richter’s unconsolidated P&L statement shows Q1 profit of HUF 26.7 billion, up 162% from the same period a year earlier. Revenue climbed 6% to HUF 43.3 billion.

Unconsolidated total assets increased 20% to HUF 398.1 billion in the twelve months to March 31, 2009. (MTI – Econews)