Gedeon Richter (RICHTER) Q2 2026 earnings summary

Executive summary

• CER revenue grew 8.7% in H1 2026, with strong performance in CNS, Biotechnology, and improving Women's Healthcare and GenMed, despite significant FX headwinds that led to a 0.5% YoY decline in reported revenues.

• Clean EBIT (CER) rose 21% in H1 2026, driven by CNS and Biotech momentum, operational discipline, and efficiency initiatives; reported Clean EBIT up 3% to HUF 151.8bn.

• Net profit fell 14% YoY to HUF 103.5bn, mainly due to significant FX losses, despite resilient operating profit.

• Free cash flow reached a record HUF 137bn in H1 2026, up 24% YoY, supported by higher operating profits and lower net working capital needs.

• Profitability guidance for 2026 was upgraded to double-digit Clean EBIT growth (CER), reflecting strong VraylarⓇ performance and efficiency initiatives.

Financial highlights

• CER pharmaceutical revenues up 8.7% in H1 2026; reported revenues at HUF 455.2bn, down 0.5% YoY due to FX headwinds.

• Clean EBIT at HUF 151.8bn (EUR 407mn); gross margin declined to 69% (-1.2ppt) due to FX pressure.

• EPS at HUF 566, down 13.7% YoY; ROE at 15.8%, down from 17.0% YoY.

• Free cash flow up 24% YoY to HUF 137bn; CapEx at HUF 10bn in H1.

• Net profit margin declined due to significant FX losses.

Outlook and guidance

• 2026 Clean EBIT guidance (CER) upgraded to double-digit growth following strong H1 profitability.

• Pharma CER revenue guidance maintained at high-single-digit growth for 2026.

• FX headwind for the full year expected to remain at 7%-8%, with less impact in H2.

• Continued focus on innovative portfolio expansion and operational efficiency.

• Mid-single-digit growth anticipated from 2027, with GenMed recovery expected.