Gedeon Richter (RICHTER) Q1 2025 earnings summary

Executive summary

• Q1 2025 pharma revenues rose 10% YoY to HUF 220bn (EUR 544mn), with CER revenue growth at 6% due to a high base; FX added 4ppt to reported growth.

• Achieved a strong start to 2025 with Q1 results in line with internal plans and analyst consensus, maintaining full-year guidance.

• Published a CSRD sustainability report, reflecting commitment to ESG and broad organizational involvement.

Financial highlights

• Q1 revenues reached EUR 544 million, with clean EBIT at EUR 169 million (up 8% YoY), and free cash flow at HUF 60.5 billion, a record for the company.

• Free cash flow before M&A rose 14% YoY to HUF 60bn, driven by higher operating cash flow, lower capex, and smaller NWC increase.

• Net profit was HUF 68bn, nearly flat YoY, as higher operating profit was offset by lower net financial income and lower contribution from associates.

• Dividend payout of HUF 93 billion planned in June 2025 from 2024 profits.

• FX gains contributed about 4 percentage points to revenue growth, with benign currency conditions in Q1.

Outlook and guidance

• Full-year pharma revenue guidance remains at HUF 2.3–2.4 billion.

• 2025 guidance: pharma revenues and Clean EBIT (CER) both expected to grow around 10%.

• Expect continued growth in general medicines and new product launches, especially in multiple sclerosis and NOAC segments.

• Four biosimilar launches anticipated within the next 12 months, including Denosumab, Ustekinumab, and Tocilizumab.

• Management expects more pronounced EBIT growth in H2 2025 as base effects fade.