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Net profit of Hungarian drug maker Richter drops 60.7% y/y in Q4 2013.

February 5, 2014

The net profit of Hungary's major pharmaceutical producer Richter decreased by 60.7% y/y to HUF 4.78bn ( EUR 15.4mn ) in the fourth quarter of 2013, the company said in a consolidated income report published on the Budapest Stock Exchange website. The negative outcome was due to deterioration of the company's operating results as well as its financial performance. In particular, Richter's profit from operations fell by 28.2% on the year to HUF 6.5bn as a 8.9% y/y rise in revenues to HUF 91bn was unable to offset higher spending on sales and marketing (up by 15.4% y/y), administration (up by 12.6% y/y) as well as other expenditure (up by 73.3% y/y). The company booked HUF 1.7bn net financial loses in Q4 2013, which negatively compared HUF 0.3bn financial gains a year earlier. In cumulative terms, Richter's net profit declined by 9.4% y/y to HUF 44.6bn in 2013, negatively affected by higher spending. In terms of geographical distribution, Richter saw a notable six-fold increase of sales on the Chinese market to HUF 10.4bn. Sales on the EU market were up by 8.5% y/y to HUF 126.7bn. The CIS market followed with a 5% y/y growth to HUF 151.2bn and sales in Hungary advanced by 1.4% y/y to HUF 31.4bn. By contrast, sales in the US declined 11.4% y/y to HUF 14.3bn.

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Source: IntelliNews - Weekly Reports

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