Gedeon Richter 1Q Sales In Romania Fell 18.7% To EUR33.1M

05.11.2011 By Andrei Circhelan

Hungarian drug maker Gedeon Richter Wednesday said its first-quarter sales in Romania were of EUR33.1 million, down 18.7% from EUR40.7 million in the year-earlier period, as the wholesale and retail division was affected by payment delays.

On the pharmaceutical segment, Gedeon Richter sales rose 4% on the year in Romania, to EUR7.8 million, from EUR7.5 million. Calculated in Romanian lei, sales rose 7.8%, to RON33 million.

The wholesale and retail division posted a 23.2% decline in sales, to EUR28.1 million, from EUR36.6 million. In lei, the division's sales dropped 20.8% to RON118.7 million, mainly because of weak collections in pharmacies due to delayed payments from the National Health Insurance House.

The Romanian subsidiary generates some 87% of Gedeon Richter's wholesale and retail sales.

On a group level, sales rose 10% in the first quarter, to EUR260.2 million, from EUR236.4 million. Gedeon Richter's net profit dropped 4.7% to EUR41 million, from EUR43 million.

In Romania, the Hungarian group holds a medicine plant, 119 drug stores and wholesaler Pharmapharm. (EUR1=RON4.0842)