Hungary's Gedeon Richter Reports Positive 2004 Results

Leading Hungarian pharmaceuticals producer Gedeon Richter has reported positive full year results, despite difficult domestic market conditions. Sales in 2004 were HUF121.54bn (US$641.46mn), a 4.3 percent rise over 2003, and roughly 15 percent higher in US dollar terms. Net income totalled HUF37.61bn (US$198.28mn), 11.7 percent higher year-on-year.

Exports in the year were some US$423.60mn, a rise of approximately 15 percent on 2003, with sales in the CIS countries growing 33 percent, reflecting the company's continued expansion in the region. Meanwhile, export revenue in Europe was strongest in the Czech Republic, Slovakia and France, more than offsetting slow growth in Germany. US exports declined by 9.2 percent on 2003 to US$83.60mn, mainly because of lower supplies of active ingredients and steroids to US healthcare major Johnson & Johnson.

However, the generics-focused company reported difficult conditions in its home market, with the government having introduced a price freeze in Hungary until 2006. Nevertheless, the company has claimed that a court ruling in the second half, which reversed authorities' imposition of prices at 85 percent of previous levels, had a favourable impact on results for the period.