News

2009-02-12 Hungary: 5.6% sales increase of Gedeon Richter in 2008

Sales of Gedeon Richter amounted to HUF 236,689 million (EUR 942.2 million) in 2008, a 5.6 % increase both in HUF and Euro terms when compared with 2007. Mixed picture on international markets combined with the still negative impact of Hungarian market conditions resulted in moderate overall growth for the Group. In Hungary sales totalled HUF 30,568 million (EUR 121.7 million) in 2008. Consolidated sales, when adjusted to exclude turnover in the base period of Medimpex, now owned by Hungaropharma, showed a 5.0 % decline (both in HUF and Euro terms) mostly due the adverse impact to the changes of the health care system from the beginning of 2007 and which continued during 2008.

International sales amounted to EUR 820.5 million in 2008, an increase of EUR 117.6 million or 16.7 % over 2007. In the CIS sales totalled EUR 292.9 million (US$ 429.5 million), representing 5.6 % growth (12.9 % in US$ terms). Good growth recorded in most countries of the region and across most therapeutic areas was partly offset by a slowdown in sales reported in Russia due to changes to inventory levels at wholesalers both in 2007 and in 2008. The EU region reported high sales growth of 28.8 % in Euro terms. The inclusion into the consolidation of wholesaler and retail companies acquired in Romania generated significantly higher sales levels in the reported period when compared to 2007. Excluding the wholesale and retail segment 8.8% growth was recorded in the EU region. Sales in the USA increased by 23.0 % in US$ terms in 2008 due primarily to significant revenues from our profit sharing agreements. Turnover in the ‘Rest of the World’ region increased by 7.3 % in Euro terms.

Operating profit in the twelve months to December 2008 at HUF 35,809 million (EUR 142.5 million) was HUF 474 million (1.3 %) lower when compared with 2007. This performance was achieved in spite of the unfavourable exchange rates (EUR/HUF, US$/HUF) that prevailed during most of the reported period. In Euro terms operating profit decreased by EUR 1.9 million (1.3 %). Operating margins in 2008 declined to 15.1 % when compared with 16.2 % in 2007. Profit for the period increased by 30.3 % both in HUF and in Euro terms during 2008 to a total of HUF 43,436 million (EUR 172.9 million) principally due to the significant net financial, which resulted from unrealised and realised gains. Diluted earnings per share amounted to HUF 2,331 per share (EUR 9.28 per share) in the twelve monthsto December 2008, an increase of 30.3 % both in HUF and in Euro terms over the previous year.Total assets and total shareholders' equity and liabilities amounted to HUF 384,438 million on 31 December 2008, an increase of HUF 36,475 million over the totals reported at 31 December 2007.The cash position remains positive.

Izabela Klockowska
Based on Financial Report of Gedeon Richter