Gedeon Richter (RICHTER) Q4 2024 earnings summary

Executive summary

• Achieved record year in 2024 with pharma revenues up 13% YoY to HUF 845bn (EUR 2.14bn), driven by double-digit growth across all segments and strong FX tailwind.

• Free cash flow reached HUF 244 billion, nearly tripling YoY, and EPS increased by 52% to HUF 1,307.

• All business units contributed to growth, with notable performance in Women's Health, CNS, and Biotechnology.

• Major R&D milestones included FDA and EMA submissions for biosimilars and new product launches in key therapeutic areas.

• Significant progress in ESG, reducing group-level GHG emissions by 4% despite 20% volume growth.

Financial highlights

• Clean EBIT in constant currencies was HUF 712 million, a 15% increase YoY; Clean EBIT in HUF was HUF 280 billion, up 18%.

• EBIT grew by 38% due to the phasing out of extraordinary tax and lower other expenditures.

• Net profit increased by 51% YoY to HUF 239bn, supported by FX gains and improved operational cash flow.

• CapEx declined by 15%, contributing to a near tripling of free cash flow.

• M&A spending totaled HUF 133.5 billion, with share buybacks and dividends paid.

Outlook and guidance

• 2025 guidance targets 10% revenue and Clean EBIT growth in constant currencies, with all segments expected to grow double-digit.

• Pharma revenues projected between EUR 2.3–2.4 billion; Clean EBIT growth to be achieved despite lower milestone income.

• R&D-to-sales ratio to remain around 12% in 2025; new Clean EBIT methodology to include inventory and receivables impairment.

• Cost growth to be kept below revenue growth, with ongoing cost control initiatives.

• Key product launches and regulatory approvals expected in biosimilars and NOACs.