Net income of Hungarian pharmaceutical company Gedeon Richter rose 7% year-on-year to HUF 174.9bn in Q1-Q3 as revenue edged higher and sales and marketing costs fell, an earnings report released ahead of the opening bell on Tuesday shows.
Revenue increased 2% to HUF 695.9 billion. Cost of sales climbed 4% to HUF 221.8 billion. Gross profit inched up 1% to HUF 474.1 billion.
Operating profit climbed 6% to HUF 216.8 billion as sales and marketing costs dropped 5% to HUF 120.5 billion on the back of favourable exchange rates and an improvement in commercial efficiency, Richter said. Earnings per share reached HUF 956.
Richter upgraded its guidance for full-year revenue growth for its pharmaceutical business, at constant exchange rates, to "above 10%", after revenue growth in Q1-Q3, at constant exchange rates, reached 11.7%.
Guidance for operating profit of the pharma business, at constant exchange rates and cleared of one-offs, was upgraded to "high-teens growth" after reaching 25% in Q1-Q3.
North America was Richter's biggest market during the period, generating pharmaceutical revenue of HUF 212.2 billion, up 6%. Revenue from sales of Vraylar – the brand name there for Richter's antipsychotic cariprazine – rose 4% to HUF 188.7 billion.
Pharmaceutical sales in Eastern Europe reached HUF 127.4 billion and sales in Central Europe stood at HUF 133.4 billion. In Western Europe, sales came to HUF 139.9 billion.
At a press conference after the release of the report, CEO Gábor Orbán said he was "very satisfied" with the Q1-Q3 results which showed Richter was "progressing well" towards profitability targets in its strategy for the period till 2030. He noted that the patent for cariprazine would expire in Q1 2030, but added that "the sky is the limit" for the contribution of Richter's gynecology and biotech businesses to profits.
Fielding questions, the CEO stated that dialogue with the government, "which is now in listening mode", was "intensive", adding that it was "a good sign" for the future.












