Gedeon Richter (RICHTER) Q2 2025 earnings summary

Executive summary

• Pharma revenue grew 10.7–11% in H1 2025, with Clean EBIT up 14.5–15.1% and EBIT up 11% year-over-year, tracking above or in line with guidance.

• Women's Health and CNS segments led growth, with double-digit gains; Vraylar and Ryeqo® performed strongly.

• Net profit declined 13–13.2% due to FX losses and higher costs, despite operating gains.

• Strategic R&D, product launches, and U.S. fertility market entry via Granata Bio collaboration advanced innovation.

• Free cash flow remained robust at HUF 110.8–111bn, with most paid as dividends; net cash position stable.

Financial highlights

• Revenue grew 10.7–11% in H1 2025, with a 3 percentage point FX tailwind; CER revenue up 8%.

• Clean EBIT up 14.5–15.1% (10% FX-adjusted), EBIT up 11% year-over-year.

• Gross margin stable at 69.7–70.2%; Clean EBIT margin improved to 31.8%.

• Free cash flow stable at HUF 110.8–111bn; EPS fell to HUF 656, down 13.2% YoY.

• FX gains dropped to HUF 3.2bn from HUF 24bn in 2024; realized FX losses of HUF 15bn due to USD depreciation.

Outlook and guidance

• On track to meet full-year guidance for 10% revenue and Clean EBIT growth (FX-adjusted/CER).

• Inventory write-offs expected to be significantly lower for the full year versus 2024, with improvements in H2.

• Vraylar outlook for 2025 has upside due to strong volume growth and delayed Medicare headwinds.

• Denosumab launch targeted for late 2025 in Europe, with U.S. approval pending; tocilizumab expected in H1 2026.

• FX volatility and global minimum tax implementation remain key factors for H2.