Gedeon Richter (RICHTER) Q4 2024 earnings summary

Executive summary

• Achieved record 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.

• Clean EBIT rose 18% YoY to HUF 280bn, with net profit up 51% YoY to HUF 239bn, supported by higher operating profits and positive financial items.

• Free cash flow nearly tripled YoY to HUF 244bn, with net cash returning to year-ago levels despite significant M&A activity.

• All four business units contributed to growth, with notable advances in women's health, CNS, general medicines, and biotechnology.

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

Financial highlights

• Pharma revenues grew 9% in Q4 2024, with full-year CER revenue growth at 10%, at the low end of guidance.

• Gross profit (pharma) increased 14% to HUF 586bn; gross margin improved by 0.5ppt to 69.3%.

• Clean EBIT (pharma) up 19% in Q4 and 18% for the year; CER Clean EBIT rose 15% to EUR 712mn, slightly below guidance due to M&A impacts.

• Net financials contributed HUF 12.9bn, reversing prior year losses, mainly due to FX gains.

• EPS rose 52% YoY to HUF 1,307.

Outlook and guidance

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

• Milestone income expected to be less than half of 2024's €50M, impacting margins.

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

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

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