Gedeon Richter (RICHTER) Q1 2025 earnings summary

Executive summary

• Q1 2025 pharma revenues rose 10% year-over-year to HUF 220bn (EUR 544mn), with strong performance in women's health and general medicines; results were in line with internal plans and analyst consensus.

• Clean EBIT increased 8% year-over-year to HUF 69bn (EUR 169mn), with free cash flow before M&A up 14% to HUF 60.5 billion, reflecting reliable performance and effective communication of business events.

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

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

• Board approved HUF 93bn dividend payout from 2024 profits, to be paid in June 2025.

Financial highlights

• Q1 revenues reached EUR 544 million, with clean EBIT at EUR 169 million (up 7–8% year-over-year), and free cash flow at a record HUF 60.5 billion.

• Gross profit (pharma) grew 10% year-over-year to HUF 154bn; gross margin slightly lower at 70.0%.

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

• Net financials added HUF 13.4bn to pre-tax profit, mainly from unrealized FX gains on RUB.

• Return on equity at 17.8%, up 1.9ppt year-over-year.

Outlook and guidance

• Full-year guidance for pharma revenues between HUF 2.3–2.4 billion remains intact, with 2025 guidance for pharma revenues and Clean EBIT (CER) both expected to grow around 10%.

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

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

• General medicines expected to maintain dynamic growth with positive price effects and new launches, especially in multiple sclerosis and NOACs.

• Women's health EBIT margin expected to improve as shipment phasing evens out over the year, with Q4 anticipated to be particularly strong.