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Richter Celebrates 20 Years Anniversary Of Listing On Budapest Stock Market

Tamás Székely 2014.11.28.

The shares of Gedeon Richter Plc. were admitted to trading at the Budapest Stock Exchange 20 years ago. In the two decades since then, the price of the company’s shares has showed a 28-fold increase, while Richter has become the third highest-turnover security of the Hungarian stock market. The last twenty years of Richter is a true success story both for stock exchange investors and the Hungarian economy: the pharmaceutical company’s sales revenue has grown more than 15-fold, its profit-after-tax 10-fold, and the number of employees 2.5-fold since listing.

Two decades ago, in November 1994, the shares of Gedeon Richter Plc. were admitted to trading at Budapest Stock Exchange at a listing price of HUF 1,330 (corresponds to HUF 133 at current price after split). Established in 1901, Richter has gone a long way both on the stock exchange and in the pharmaceutical industry. Since flotation, the company’s securities have become the third highest-weighting share of the BUX Index; Richter’s market capitalisation amounts to HUF 695 billion at current share price. Since its listing, the share price has grown 28-fold and the company paid dividend in the amount of approximately HUF 162 billion on its ordinary shares. Since listing, more than 400 million Richter shares have been traded in approximately 2.2 million deals in the amount of approximately HUF 6,621 billion.

A key moment in Richter’s stock exchange history was when the management approved a 10-for-1 stock split in the summer of 2013 (nominal value dropped from HUF 1,000 to HUF 100, thus each investor received 10 shares instead of 1). This measure had a positive effect on the turnover of Richter shares and, according to the analysts, also gave a boost to share price. Since flotation, Richter has been listed in Budapest Stock Exchange’s highest share category, since 2013, the Premium Market.

Richter has proved to be a true success story for institutional and private stock exchange investors alike, as well as for the Hungarian economy: Richter has become the largest domestic pharmaceutical manufacturer and a major multinational corporate group. Since 1994, its sales revenue has increased 16-fold (HUF 351 billion in 2013), its profit-after-tax 10-fold (HUF 42.4 billion in 2013) and its dividend per share 9.5-fold (HUF 57). There has also been a significant boost in the number of Richter’s employees: in 2013 the company had approximately 12 thousand employees in comparison to 4.5 thousand in 1994.

Gedeon Richter Plc. headquartered in Budapest, is a major pharmaceutical company in Central Eastern Europe, with an expanding direct presence in Western Europe. Richter’s consolidated sales revenue was approximately EUR 1.2 billion while its market capitalization amounted to EUR 2.8 billion in 2013. The product portfolio of the Company covers almost all important therapeutic areas, including gynaecology, central nervous system, and cardiovascular. Having the largest R&D unit in Central Eastern Europe, the Company’s original research activity focuses on central nervous system disorders. With its widely acknowledged steroid chemistry expertise, Richter is a significant player in the female healthcare field worldwide. Richter is also active in the field of biosimilar product development.

via richter.hu photo: Zoltán Máthé – MTI


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