Gedeon Richter (RICHTER) Q4 2025 earnings summary

Executive summary

• 2025 ended with strong revenue and Clean EBIT growth exceeding guidance at constant exchange rates, despite geopolitical risks, currency headwinds, and regulatory uncertainty.

• Pharma revenues rose 8.3% YoY (CER) to EUR 2.31bn, Clean EBIT up 14% YoY (CER), with Q4 performance particularly robust.

• Sentiment around hormonal therapies improved, benefiting the Women's Health segment, and the company is well-positioned to launch its new E4 compound later in 2026.

• Free cash flow increased 2% YoY, supporting record-high dividends, while net profit declined 3% YoY due to FX losses and higher taxes.

• EPS declined year-over-year due to higher taxes and realized FX losses, despite operational improvements.

Financial highlights

• FY2025 pharma revenues: HUF 914bn (+8.2% YoY); Q4 revenues up 12.5% YoY.

• Gross margin reached 69.5%, up slightly from previous years, and gross profit grew 8% YoY to HUF 635bn.

• Clean EBIT (pharma) up 14% YoY to HUF 305bn; Q4 Clean EBIT up 37% YoY.

• Free cash flow reached HUF 250bn (+2% YoY), supporting record-high dividends.

• Return on equity at 16.6%.

Outlook and guidance

• High single-digit growth in both revenues and Clean EBIT is expected for 2026.

• R&D-to-sales ratio is projected to rise to 11% in 2026, driven by clinical projects in CNS and Women's Health.

• Launch of Feel Revie (E4) in Hungary and other regions is planned for 2026, with initial revenues expected to be small but ramping up in subsequent years.

• EUR 100mn restructuring expenses expected 2026–2030, mainly for IT upgrades.

• Clean EBIT will be unevenly distributed across quarters in 2026 due to seasonality and shipment timing.