Richter's Sales and Profit Increased

Consolidated sales of Richter Gedeon Plc. amounted to HUF 636.4 billion in the first nine months, up 5.7% year-on-year, the pharmaceutical company announced on the website of the Budapest Stock Exchange on Tuesday.

The company posted a 42.2% increase in profit after tax to 175.9 billion forints in the first three quarters.

The report underlined that profit after tax increased thanks to improved operating profitability and the absence of foreign exchange losses.

CEO Gábor Orbán said in the report that the financial results continue to reflect strong momentum. Double-digit revenue growth was achieved in all areas, with an even stronger increase in profitability.

Foreign exchange gains for the first nine months amounted to HUF 1.8 billion, a significant improvement on the large losses of a year ago.

Pharmaceutical revenues grew by 15% to HUF 214 billion in the third quarter of 2024, bringing total pharmaceutical revenues for the first three quarters to HUF 627 billion, up 14.5% year-on-year, with all four businesses achieving double-digit revenue growth. Currency-adjusted revenue growth was 12%.

According to the report, the new research, development and licensing agreement with AbbVie to develop new targets for the potential treatment of neuropsychiatric disorders is another significant strategic move this year.

They said that they had not changed their previous forecast, and that for the full year both pharmaceutical revenues and adjusted EBIT would be closer to the lower end of the unchanged forecast range (EUR 2.15-2.25 billion and EUR 725-750 million). The expected R&D milestone revenue, the lower Vraylar forecast and the impact of M&A on EBIT levels should broadly offset each other, they wrote.

Adjusted EBIT in the pharma segment rose 18 percent to 209 billion forints in the first three quarters of 2024. Excluding currency effects, adjusted EBIT amounted to HUF 205 billion. The main drivers of the improved profitability in the first three quarters were the neuropsychiatry and gynecology businesses, losses in the biotechnology business also narrowed, while the general medicines business made a stable contribution to the results.

Richter shares are traded in the premium category of the BSE. Last year, the highest price was HUF 11,260 and the lowest was HUF 8,500, with the share price gaining HUF 130 on Monday, up 1.2% to HUF 11,000, and turnover of HUF 680.7 million.