Published: 2016-05-27 17:00:46 CEST
Grindeks
Quarterly report

On “Grindeks” results in the first quarter of 2016

Today, on 27 May, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the first quarter of 2016 to “NASDAQ Riga”. Non-audited financial results indicate that the Group’s turnover in the first quarter of 2016 was 20.8 million euro and has decreased by 1.6 million euro or 7.2% in comparison to the first quarter of 2015. In the first quarter of 2016, the Group’s net profit, attributable to shareholders of the parent company, was 0.05 million euro and has decreased by 1.4 million euro or 96.5 % compared to the first three months of 2015. Gross profit margin in the first quarter of 2016 was 44.6%, while net profit margin was 0.2%. In the first three months of 2016, the Group’s production was exported to 53 countries worldwide, a total of 18.8 million euro which is by 1.8 million euro or 8.6% less than in the first quarter of 2015.

Sales volume of the final dosage forms of “Grindeks” in the first quarter of 2016 was 19.2 million euro and has decreased by 0.04 million euro or 0.2% in comparison to the first three months of 2015. In the first quarter of 2016, the sales amount in Russia, other CIS countries and Georgia reached 10.0 million euro, which is by 2.2 million euro or 18.3% less than in the first quarter of 2015. In comparison to the first three months of 2015, the biggest increase in sales volume has been reached in Ukraine (8%), Georgia (4%) and Moldova (3%).

Due to the business diversification strategy and the development of company’s activities in the new markets, sales volume in the Baltic States and other countries reached 9.2 million euro which is by 2.2 million euro or 31.8% more than in the first quarter of 2015. The sales volume in Canada compared with the first three months of 2015, has increased by 3.6 times, in Poland – 2.5 times, while in Hungary it has increased by 88%. In the first quarter of 2016, the sales volume in Latvia reached 1.7 million euro and has increased by 0.2 million euro or 11.5% in comparison with the first three months of 2015.

In the first quarter of 2016, sales of the active pharmaceutical ingredients reached 1.5 million euro, which is by 1.6 million euro or 52.1% less than in 2015. The key markets of “Grindeks” active pharmaceutical ingredients are the EU countries, U.S., Australia and Japan. The most required active pharmaceutical ingredients of “Grindeks” in the first three months of 2016 were oxytocin, droperidol, pimobendan, detomidine and xylazine.

Juris Bundulis, the Chairman of the Board of JSC "Grindeks”: „By using our knowledge and experience, company’s orientation to new markets is progressing well. However, considering the specificities of pharmaceutical business, reorientation from one region to another requires patience, time and recourses. In comparison with the previous years, this year the amount of registered drugs in the new markets will significantly grow, leading to increase in sales in both the near and distant future. Pleasantly, in the first quarter our operations in Russia and Ukraine, quite essential markets for “Grindeks”, have marked a positive trend, stabilizing the overall situation and motivating us to continue what has been started.”

 

About “Grindeks”

“Grindeks” is an international, vertically integrated pharmaceutical company. Main fields of action are research, development, manufacturing and sales of original products, generics and active pharmaceutical ingredients. The Group of “Grindeks” consists of five subsidiary companies in Latvia, Estonia, Russia and Slovakia as well as representative offices in 13 countries.

“Grindeks” specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups. A range of products covers a successful combination of original products and generics, with the original products Mildronate® and Ftorafur®. Currently “Grindeks” produces 25 active pharmaceutical ingredients.

In 2015, products of the company were exported to 70 countries, comprising 90% of the total turnover. The key markets include the EU countries, Russia and other CIS countries, the U.S., Canada, Japan and Vietnam.

To increase production capacity and develop infrastructure, since 2002 “Grindeks” has accomplished many significant investment projects, investing more than 70 million euro over the years.

 

 

         Further information:
         Laila Klavina
         Head of the Communications Department, JSC “Grindeks”
         Phones: (+371) 67083370, (+371) 29256012
         Fax: (+371) 67083505
         laila.klavina@grindeks.lv


Grindeks_financial_statements_2016_Q1.pdf