Gedeon Richter PLC

H1 reported revenue figures were not fully stated in the transcript, but management said constant-currency revenue growth was 8.7% and reported Clean EBIT was HUF 151.8 billion, up 3% in H1 2026. Gross margin came down to 69.5%, and cost of sales rose by 0.7 percentage points in H1. Net profit was HUF 103.5 billion, free cash flow was described as record high, restructuring costs were HUF 4.5 billion, and FX loss in Q2 was over HUF 32 billion. On guidance, management upgraded Pharma Clean EBIT to double-digit constant-currency growth, said full-year constant-currency revenue growth remains close to 10%, and reiterated that GenMed should return to steady mid-single-digit growth, while biotech breakeven is expected by next year at the latest.

Gabor Orban said the quarter showed that underlying performance improved materially once FX is stripped out, and that the company now has enough confidence to potentially outperform full-year targets. He emphasized that the upgrade was driven by Vraylar, stronger profitability across the rest of the business, better momentum in Women's Healthcare, and ongoing operational discipline. His tone was confident and strategic, framing the company’s multi-year restructuring as increasingly visible in margins, cash flow, and future growth foundations.

Laszlo Kovacs focused on margin recovery, cost discipline, and cash generation. He said gross margin fell to 69.5%, operating expenses declined 6%, R&D declined 6.5% while staying around 10% of Pharma revenue, sales and marketing declined 7%, and G&A was basically flat; restructuring costs were HUF 4.5 billion. He highlighted reported Clean EBIT of HUF 151.8 billion, net profit of HUF 103.5 billion, over HUF 32 billion of FX loss in Q2, record high free cash flow, HUF 10 billion of CapEx in H1, and the remaining almost HUF 31 billion of dividends due in Q3.

Analysts pressed management on the size of the gross margin uplift from API consolidation, the timing of a GenMed turnaround, Biotech impairments, GLP-1 strategy, and capital allocation. Management said the API and overhead-efficiency programs are part of the long-running move from a 10% to a 20% ex-CNS Clean EBIT ratio, that GenMed recovery should start next year after a protracted reset, and that the Biotech impairment was tied to a licensed product with partner manufacturing issues and may partly be recoverable. On capital allocation, management said dividends remain the default while M&A and licensing are the priority use of cash, with buybacks not favored.