Richter 2026 Q2 Review

  • Operating beat, bottom-line miss. Revenues of HUF 241.4bn came in 0.8% above consensus and clean EBIT of HUF 82.1bn 7.2% above, while net profit of HUF 38.2bn fell 29.3% short. The gap arose entirely below the operating line.
  • FX cut quarterly revenues by HUF 25.6bn, while the appreciating forint drove HUF 32.1bn of FX losses through the financial result, of which HUF 22.5bn was unrealised. At constant currency, pharma revenues grew at a double-digit rate.
  • CNS revenues of HUF 70.8bn were up 24.7% CER, with Vraylar royalties of HUF 65.7bn after AbbVie's sales jumped 19% to USD 1.07bn. CNS accounts for roughly 74% of pharma clean EBIT, which is also the single largest concentration risk.
  • The 70.0% gross margin beat expectations by a full percentage point, driven mainly by improvements at WHC (68.9% to 70.1%) and BIO (34.9% to 39.8%), while total pharma opex fell 4.6%.
  • Record cash generation, upgraded guidance. Free cash flow was roughly HUF 60bn in the quarter and net cash rose to HUF 254.8bn. The company raised its 2026 clean EBIT target to double-digit CER growth, up from high-single-digit.

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