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UPDATE 1-Hungary's Richter sees 2015 revenue down by as much as 8 pct
February 9, 2015 / 9:57 AM / 3 years ago

UPDATE 1-Hungary's Richter sees 2015 revenue down by as much as 8 pct

* Operating margin to fall to 10 pct

* To cut costs by 10 bln forints

* Shares fall 1.5 pct, underperform (Adds CEO comment market reaction)

BUDAPEST, Feb 9 (Reuters) - Hungarian drugmaker Richter expects revenues to fall by 7-8 percent in 2015 from last year’s 1.14 billion euros ($1.29 billion) on weakened eastern markets and lower sales to the United States, its chief executive said on Monday.

Richter expects its operating margin to fall to 10 percent of revenues from 11.1 percent, Chief Executive Erik Bogsch told a news conference after the company reported worse-than-expected fourth-quarter results.

Shares fell 1.3 percent lower at 3,775 forints on the Budapest Stock Exchange.

In its biggest market, Russia, which accounted for 24 percent of revenue last year, down from 28 percent in 2013, Richter expects revenue to rise to 15 billion roubles ($228.38 million) from 13.7 billion last year, Bogsch said.

But the improvement will come from a 25 percent price increase in around half of its products to cope with an expected 5-10 percent fall in sales in this year in Russia.

In Ukraine, where the hryvnia tumbled to a third of its value to the dollar within a year, Richter expects revenue to fall by another 40 percent.

In the United States, Richter expects revenue to fall by 30 percent in dollar terms this year, but it has flagged growth in the European Union, Poland, China and Latin America. Richter expects stagnation in its domestic market.

Bogsch said Richter planned to cut costs by 10 billion forints ($37.11 million) this year to boost profitability. ($1 = 269.47 forints) ($1 = 0.8814 euros) ($1 = 65.6790 roubles) (Reporting by Gergely Szakacs; editing by Jason Neely and Louise Heavens)

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