Richter Gedeon Posts Strong Growth For First Half 1997

Hungarian drug producer Richter Gedeon has posted a strong rise insales and profits for the first six months of the year. Net profits were up 45.7% to 9.51 billion forint ($48.2 million), operating profits grew to 7.76 billion forint, a rise of 48.6%, while turnover reached 24.84 billion forint, an increase of 37.4%, according to MTI Econews.

First-half 1997 exports were worth $98 million, 17.5% higher than in the same period last year, which the company attributes to a 42.7% increase in sales to the Commonwealth and Independent States, totaling $47.8 million. While exports to eastern Europe went up by 12.2% to $18.9 million, sales in other markets fell 1.6% to $31.3 million. Chief executive Erik Bogsch estimated that the company could account for around 10% of total exports to the CIS, and added that Richter had benefited from stabilization in the Russian market. He also said that the company was planning greenfield investments in the CIS.

Domestically, Richter's share of the market rose from 9.8% in 1996 to 10.7% in the first half of this year, according to the company, with first-half sales totaling 7.51 billion forint, a rise of 23.7%. Reports suggest that Richter has now become market leader in Hungary.