Gedeon Richter Plc reported first-quarter results that missed analyst expectations, with company executives attributing the shortfall in part to timing-related disruptions in its women’s healthcare and generic medicine businesses.
For the quarter the Hungarian pharmaceutical group recorded revenue of HUF217.3 billion, below the consensus forecast of HUF233.6 billion. Clean EBIT came in at HUF69.7 billion, a 1.5% increase year-over-year but under the HUF73.5 billion consensus estimate.
On a divisional basis, pharmaceutical revenue rose 5.9% on a constant exchange rate (CER) basis, yet declined 1.3% in reported terms. The central nervous system (CNS) division reported a 4% year-over-year revenue increase. Within CNS, Vraylar royalties expanded 4.4% in reported terms and 18.9% on a CER basis.
The antipsychotic Reagila registered a 3.7% decline in reported revenue but showed 1.3% growth on a CER basis, with the company noting that shipment timing had an adverse effect on the reported outcome.
Revenue in the women’s healthcare division rose only 0.7% year-over-year in reported terms, or 6.2% on a CER basis. Management identified a warehouse transition in Eastern Europe that took place during the fourth quarter, along with delivery timing issues in the Asia-Pacific region that affected the contraception portfolio, as temporary factors weighing on the division’s reported performance. Clean EBIT for women’s healthcare contracted sharply, falling 32.8%, and the margin narrowed to 11.8% from 17.7% a year earlier.
The biosimilars business delivered robust growth, with revenue up 28% in reported terms and 34.8% on a CER basis. Teriparatide drove part of that expansion, with revenue for the product increasing 40% due to strong volumes and market performance. Clean EBIT for the biosimilars division moved into positive territory at HUF1.06 billion, representing a 6.4% margin.
Generics revenue softened, declining 12% year-over-year in reported figures and 8.5% on a CER basis. The company cited the absence of a flu season, a deliberate streamlining of the portfolio and pricing pressures in certain markets as factors behind the decline. Clean EBIT for the generic medicines segment dropped 48.5% to HUF6.2 billion.
Despite the quarterly miss, Gedeon Richter reiterated its full-year guidance calling for high single-digit growth on a constant exchange rate basis in both revenue and clean EBIT. The company also reiterated its expectation that foreign exchange movements will present approximately a 5% headwind for the full year.
Contextual note: Management attributed several of the reported shortfalls to timing and logistical issues rather than underlying demand deterioration, and flagged currency effects as a material factor for the remainder of the year.