On “Grindeks” financial results in the first nine months of 2016
Today, on 25 November, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the first nine months of 2016 to “Nasdaq Riga”. Non-audited financial results indicate that the Group’s turnover in the first nine months of 2016 was 72.4 million euro and has increased by 8.9 million euro or 14% in comparison to the first nine months of 2015. In the first nine months of 2016, the Group’s net profit, attributable to shareholders of the parent company, was 6.4 million euro and has increased by 2.6 million euro or 66% compared to the first nine months of 2015. Gross profit margin in the first nine months of 2016 was 49%, while net profit margin was 9%. In the first nine months of 2016, the Group’s production was exported to 67 countries worldwide, a total of 65.1 million euro which is by 8.3 million euro or 15% more than in the nine months of 2015.
Sales volume of the final dosage forms of “Grindeks” in the first nine months of 2016 was 66.4 million euro and has increased by 10.5 million euro or 19% in comparison to the first nine months of 2015. In the first nine months of 2016, the sales amount in Russia, other CIS countries and Georgia reached 38.2 million euro, which is by 5.8 million euro or 18% more than in the first nine months of 2015. After assessment of potential currency risks, “Grindeks” limited its operations in Central Asia countries in the first nine months of 2016, thus, the export to these countries was reduced. In comparison to the first nine months of 2015, the biggest increase in sales volume has been reached in Russia (55%), Turkmenistan (36%) and Moldova (18%).
Due to the business diversification strategy and the development of company’s activities in the new markets, in the first nine months of 2016 the sales volume in the Baltic States and other countries reached 28.2 million euro which is by 4.7 million euro or 20% more than in the first nine months of 2015. The sales volume in the Netherlands compared to the first nine months of 2015 has increased by 3.6 times, in Spain – 2.5 times, in Tunisia – 2.1 times, while in Finland it has increased by 50%. In the first nine months of 2016, the sales volume in Latvia reached 5.4 million euro and has increased by 1.2 million euro or 28% in comparison with the first nine months of 2015. In the first nine months of 2016, compared with the first nine months of 2015, remarkable increase in sales have been reached also in the other Baltic States – in Lithuania by 20% and Estonia by 14%.
In the first nine months 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.
In the first nine months of 2016 sales volume of active pharmaceutical ingredients reached 4.7 million euro, which is by 1.1 million euro or 18% less than in the first nine months of 2015. In this period the biggest export of “Grindeks” active pharmaceutical ingredients was to EU countries, USA, Australia and Japan. The most demanded “Grindeks” active pharmaceutical ingredients in the first nine months of 2016 were oxytocin, zopiclone, droperidol, detomidine and pimobendan. Active pharmaceutical ingredients meldonium and ursodeoxycholic acid manufactured by “Grindeks” received the European Pharmacopoeia Certificate of Suitability.
Juris Bundulis, the Chairman of the Board of JSC “Grindeks”: “The Group of “Grindeks” results in the first nine months of this year show a dynamic sales and earnings growth, which contributes to the growth of final dosage form sales volume. The restructuring of the Group's activities in two key markets – Russia and Ukraine has been accurate and successful. Thus, in Russia the demand for “Grindeks” medications increased early in the year, while in Ukraine – in the second half of the year. Our performance is beholden also in the Baltic countries, especially Latvia. Despite it, we continue to develop our activities in new markets. Achievements are based on constant and purposeful long-term cooperation with patients, clients and partners.”
“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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