Gedeon Richter (RICHTER) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue grew 11% YoY to HUF 458bn–465.5bn, with strong Q2 momentum and tracking in line with annual guidance.

• Clean EBIT rose 15.1% YoY to HUF 148,160m, with Q2 Clean EBIT up 21% YoY, driven by CNS and Women's Health segments.

• Net profit declined 13.2% YoY to HUF 119,978m–120bn, as FX losses and higher costs offset operating gains.

• Women's Health and Vraylar led segment growth, while Biotech losses narrowed and strategic R&D/product launches continued.

• Granata Bio partnership expanded US fertility presence; two phase II trials ongoing in Neuropsychiatry.

Financial highlights

• FX tailwind contributed ~3ppt to revenue growth, but impact weakened in Q2.

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

• Free cash flow at HUF 110.8bn–121bn, stable YoY but impacted by FX and higher working capital.

• EPS was HUF 656, down 13.2% YoY; ROE at 17.0%.

• CapEx 35% lower YoY, in line with internal caps.

Outlook and guidance

• On track to meet full-year guidance for ~10% revenue and clean EBIT growth ex-FX.

• Inventory write-offs expected to be significantly lower in H2 2025 versus prior year.

• VRAYLAR outlook has upside for 2025; Medicare reforms impact expected mainly in H2.

• CapEx and cash conversion cycle expected to normalize by year-end.

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