“Richter is right on track with management’s expectations and has achieved solid profitability at an unchanged exchange rate,” CEO Gábor Orbán said during an online briefing on Friday to review the first-half results of the pharmaceutical company Richter Gedeon Nyrt.
He added that the significant exchange rate impact comes as no surprise to anyone, as the aggressive strengthening of the forint does not help an exporter’s performance. He noted that the forint exchange rate has now stabilized, so this will no longer have a major impact in the next six months.
The 2026 adjusted operating profit (EBIT) forecast is being raised to double digits following a 21% increase (adjusted for exchange rates) in the first half of the year; it will grow by “around 10%” for the full year, he explained.
He emphasized that they have completed their pharmaceutical manufacturing optimization program in Hungary, relocating active ingredient production to Dorog over a three-year period and phasing out the parallel infrastructure in Budapest. Partly as a result of this, energy consumption in Hungary has decreased by 54.7 % and hazardous waste production by 11.5 %. This guarantees viable, competitive, and cost-effective pharmaceutical manufacturing within the EU, he emphasized. Meanwhile, there were “mathematically” no layoffs; the restructuring is ongoing, and production halls at the Budapest facilities will be shut down over the next year.
Chief Financial Officer László Kovács stated that in the second quarter, the innovative and biotechnology segments performed exceptionally well, with the latter growing by 30% on an exchange-rate-adjusted basis. AbbVie’s global net sales of Vraylar reached nearly USD 2 billion in the first half of the year, representing a 19% increase, from which the company generated significant royalty revenue. In the generic drugs segment, the company expects the downward trend seen so far to reverse in the third quarter.
Regarding regional revenues, he noted that regions dominated by innovative products – including Western Europe and North America – achieved exceptional growth. R&D expenses decreased by 6.5% to HUF 23 billion, although they still account for 10% of revenue. Adjusted operating profit (EBIT) increased by 21% to HUF 151.8 billion on a currency-adjusted basis. He highlighted that interest income doubled.
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