Half Year financial report
On “Grindeks” financial results in the first half year of 2016
Today, on 26 August, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the first half year of 2016 to “Nasdaq Riga”. Non-audited financial results indicate that the Group’s turnover in the first six months of 2016 was 46.4 million euro and has increased by 2.6 million euro or 5.9% in comparison to the first six months of 2015. In the first six months of 2016, the Group’s net profit, attributable to shareholders of the parent company, was 4.2 million euro and has increased by 1 million euro or 32.4 % compared to the first six months of 2015. Gross profit margin in the first half year of 2016 was 51.1%, while net profit margin was 9.2%. In the first six months of 2016, the Group’s production was exported to 64 countries worldwide, a total of 41.5 million euro which is by 1.7 million euro or 4.2% more than in the first half year of 2015.
Sales volume of the final dosage forms of “Grindeks” in the first half year of 2016 was 42.5 million euro and has increased by 3.4 million euro or 8.7% in comparison to the first half year of 2015. In the first half year of 2016, the sales amount in Russia, other CIS countries and Georgia reached 23.8 million euro, which is by 0.3 million euro or 1.2% more than in the first half year of 2015. After assessment of potential currency risks, “Grindeks” limited its operations in Central Asia countries in the first half year of 2016, thus, the export to these countries was reduced. In comparison to the first six months of 2015, the biggest increase in sales volume has been reached in Russia (25%), Uzbekistan (18%), Moldova (17%) and Turkmenistan (15%).
Due to the business diversification strategy and the development of company’s activities in the new markets, in the first half year of 2016 the sales volume in the Baltic States and other countries reached 18.6 million euro which is by 3.1 million euro or 20.1% more than in the first half year of 2015. The sales volume in Croatia compared with the first six months of 2015 has increased by 7.6 times, in Spain – 4 times, in Canada – 1.8 times, while in Hungary and Finland it has increased by 36%. In the first half year of 2016, the sales volume in Latvia reached 3.8 million euro and has increased by 0.9 million euro or 32.5% in comparison with the first six months of 2015. In the first half year of 2016, compared with the first half year of 2015, remarkable increase in sales have been reached also in the other Baltic States – in Lithuania by 17% and Estonia by 16%.
In the first half year of 2016, in several Eastern European countries, including the Baltic States, the Group of “Grindeks” has registered injectable preparations – Diazepeks®, Neostigmine-Kalceks, Piracetam-Kalceks, Magnesium sulfate-Kalceks and Tramadol-Kalceks. In Ukraine, the Group has widened the product range and finished the registration of 8 generic medicines. In Australia, the registration of the mucolytic over-the-counter drug developed by “Grindeks” was successfully finished.
Juris Bundulis, the Chairman of the Board of JSC “Grindeks”: "After looking back at the progress made in the first half of the year, I want to highlight our achievements in the Baltic States and other European Countries, where permanent increase in sales have been reached. This comes as a result from determined and continuous work, as well as demonstrates the effectiveness of our sales and marketing activities. The focus on stable, as well as new markets and widening of the product range is helping to strengthen our market position and competitiveness.”
“Grindeks” is an international, vertically integrated pharmaceutical company. The 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 24 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 a production capacity and develop infrastructure, since 2002 “Grindeks” has accomplished many significant investment projects, investing more than 70 million euro over the years.
Head of the Communications Department, JSC “Grindeks”
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