Jirui Group's first-quarter revenue fell short of expectations, maintaining the full-year performance guidance

Investing.com – Gedeon Richter Plc (Stock code: BUD:RICHT) announced its first-quarter results on Tuesday. Revenue came in below analysts’ expectations, mainly due to temporary timing factors in the women’s health and generic drug businesses.

The Hungarian pharmaceutical company reported first-quarter revenue of 217.3 billion Hungarian forints, below the market consensus expectation of 233.6 billion Hungarian forints. Adjusted earnings before interest and taxes (Clean EBIT) was 69.7 billion Hungarian forints, up 1.5% year-over-year, but still below the market expectation of 73.5 billion Hungarian forints.

At constant exchange rates, pharmaceutical business revenue grew 5.9%, but at reported exchange rates it fell 1.3%. Revenue in the central nervous system (CNS) division rose 4% year-over-year, including Vraylar royalty fees up 4.4% at reported exchange rates and 18.9% at constant exchange rates.

Reagila declined 3.7% at reported exchange rates, but increased 1.3% at constant exchange rates, mainly due to shipment timing factors.

Women’s health business revenue increased only 0.7% year-over-year, but rose 6.2% at constant exchange rates. The segment was impacted by the transfer of Eastern European warehouses in Q4 and delivery timing issues with the contraceptive product portfolio in the Asia-Pacific region.

Clean EBIT for the segment fell 32.8%, and the profit margin narrowed from 17.7% in the same period last year to 11.8%.

Revenue in the biosimilar drugs division grew 28%, and at constant exchange rates it increased by 34.8%. Teriparatide revenue grew 40%, mainly driven by higher sales volumes and strong market performance. The division’s Clean EBIT turned positive to 1.06 billion Hungarian forints, with a profit margin of 6.4%.

Generic drug business revenue fell 12% year-over-year, and at constant exchange rates it declined by 8.5%, mainly dragged down by the absence of the flu season, product portfolio streamlining, and pricing pressure in some markets. Clean EBIT dropped 48.5% to 62 billion Hungarian forints.

Gedeon Richter reiterated its full-year performance guidance, expecting full-year revenue and Clean EBIT to achieve high single-digit growth at constant exchange rates. The company expects a 5% adverse headwind from currency exchange rates over the full year.

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