Hungary's Richter says shipments to Russia have returned to pre-war levels (updated)

Richter Gedeon Vegyeszeti Gyar Nyrt

03/08/2022 07:12

By Anita Komuves
    BUDAPEST, Aug 3 (Reuters) - Hungarian drug maker Richter
 GDRB.BU  reported a net profit of 76.5 billion forints ($195.66
million) on Wednesday, above expectations, as Russia remained
the company's second-biggest market and it also maintained
operations in Ukraine.    
    Sales revenues grew dynamically in the first half of 2022
across all markets except Ukraine, as revenues were lifted by
outsized gains from exchange rate movements combined with price
increases, Richter said in its earnings statement.  urn:newsml:reuters.com:*:nS8N2YF0E9
    "The Russian business remains steady and recent RUB strength
helped both the topline and margins," Richter CEO Gabor Orban
said in the statement.
    Richter has experienced pressure from Ukraine to "rethink"
its presence in Russia but the company was not leaving as it
provided medicine for 12 million Russian people, Orban was
quoted as saying last month.  urn:newsml:reuters.com:*:nL1N2YI0EZ
    Richter, which makes gynaecological, cardiovascular and
central nervous system drugs, has been gradually working to
limit its exposure to the Russian market and former Soviet Union
countries through an expansion in western markets in past years.
    The company said on Wednesday that shipments to Russia have
broadly returned to their pre-war levels and are made via road
freight transport through Belarus.  
    Sales to Russia increased by 26.4% in Hungarian forint terms
in the first half of the year.
    Commercial operations disrupted in Ukraine in late February
were only resumed in mid-April at significantly lower levels
compared with previous sales volumes, Richter said.
    Sales to Ukraine in the first half of 2022 declined by 33.9%
in euro terms, the company said.
    
       

($1 = 390.9900 forints)

 (Reporting by Anita Komuves, Editing by Louise Heavens)
 ((KOMUVES.Anita@thomsonreuters.com;))