Gedeon Richter (RICHTER) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw 5.9% CER revenue growth, but reported revenues declined 1.3% year-over-year due to significant FX headwinds.

• Clean EBIT grew 15% at constant exchange rates, but only 1.5% on a reported basis, supported by milestone income and cost management despite top-line and currency pressures.

• Free cash flow increased 29% year-over-year to HUF 77 billion, the second-highest in company history, driven by strong operating cash flows and stable working capital.

• Net profit declined 4% year-over-year to HUF 65.3 billion, reflecting flat operating profit and lower net financial income.

• AGM approved HUF 120 billion total dividends from 2025 profits, including a special dividend.

Financial highlights

• Reported pharma revenues: HUF 217.3 billion (-1.3% YoY); CER revenue growth: +5.9%.

• Gross margin was 67.6%, impacted by delivery timing, product mix, and a strong Hungarian forint; gross profit fell 4.7% YoY.

• Clean EBIT (pharma): HUF 69.7 billion (+1.5% YoY reported, +15% CER).

• Operating expenses declined by 7% year-over-year; S&M down 9%, G&A down 5%, R&D at 10% of sales.

• EPS: HUF 357 (-4.3% YoY); Return on Equity: 15.7% (-2.1ppt YoY).

Outlook and guidance

• High single-digit revenue and Clean EBIT growth targets reiterated for 2026 at constant exchange rates.

• FX headwind for the full year now expected at 7-8 percentage points, up from previous 5%.

• Some moderation in BIO revenue growth and continued price erosion in biosimilars anticipated.

• Double-digit growth expected in Women's Healthcare by year-end, with strong underlying product momentum.

• BioTech and innovation pillars anticipated to offset GenMed's Q1 decline, aiming for solid single-digit overall growth.