Annual Financial Report
On “Grindeks” audited results in 2018
Today, on 30 April, the JSC “Grindeks” submitted the audited consolidated financial statements of 2018 to “Nasdaq Riga”. Audited financial results indicate that the Group’s turnover in 2018 was 145.5 million euro and has increased by 13.1 million euro or 10% in comparison to 2017. While in 2018, the Group’s net loss, attributable to shareholders of the parent company, was 9.7 million euros.
The Group’s net loss attributes to a couple of factors. As the International Financial Reporting Standard on Financial Instruments (IFRS 9) requires, company made an allowance for doubtful accounts of 15.3 million euros. Also, after comprehensive evaluation of the initiated research and development projects the company’s management took into an account that many of projects have reached a successful progress and made a decision to focus recourses on them, at the same time cancelling projects with uncertain outcome. Thereby, costs from cancelled research and development projects account for 2.0 million euros. Additionally, impairment of real estate assets as well as currency fluctuations in Russia notably affected performance indicators and made a loss of 3.3 million euros.
In 2018, the Group’s production was exported to 87 countries worldwide, a total of 135.1 million euro that is by 12.6 million euro or 10% more than in 2017.
Sales volume of the final dosage forms in 2018 was 136.6 million euro and has increased by 12.4 million euro in comparison to 2017. In 2018, the sales amount in Russia, the other CIS countries and Georgia reached 87.0 million euro, which is by 5.9 million euro or 7% more than in 2017. In comparison to 2017, in the 12 months of 2018 the biggest increase in sales volume has been reached in Kazakhstan (28%), Kirgizstan (20%), Azerbaijan and Belarus (17%) and Uzbekistan (16%).
Sales volume of the final dosage forms in the EU countries in 2018 reached 45.5 million euro which is by 5.1 million euro or 13% more than in 2017. Sales volume in 2018, compared with 2017, has increased by 9 times in Bulgaria, by 3 times in Poland, by 2 times in Austria and Czech Republic, by 78% in Spain, by 60% in Denmark, by 27% in Sweden and by 25% in Croatia.
In 2018, sales of the active pharmaceutical ingredients reached 7.4 million euro, which is by 0.5 million euro or 8% more than in 2017. During this reporting period “Grindeks” mostly exported its active pharmaceutical ingredients to the EU countries, Japan, Australia and the U.S..
The Chairman of the Board of JSC “Grindeks” Juris Bundulis: “In 2018, we have increased sales by 10%. This is a stable growth and serves as a good springboard for our further plans. I would like to emphasize how important the last year was for a pharmaceutical industry, as to meet requirements of the EU Falsified Medicines Directive all drug manufacturers had to implement the new Medicines Verification System that provide each package of medicines with an authentication code. Now the new system successfully operates in all “Grindeks” Group’s pharmaceutical manufacturing companies. “Grindeks” performance in the future will be defined by our capability to expand product range as well as ability to take advantage of new opportunities.”
“Grindeks” is an international pharmaceutical company focused on research, development, manufacturing and sales of original products, generics and active pharmaceutical ingredients. The Group of “Grindeks” has four subsidiary companies in Latvia, Estonia, and Slovakia as well as representative offices in 11 countries.
“Grindeks” specializes in the heart and cardiovascular, CNS, anti-cancer and gastroenterological medication therapeutic groups. A range of products covers a combination of original products Mildronate® (meldonium*) and Ftorafur®, generics, food supplements and active pharmaceutical ingredients.
In 2018, products of the company were exported to 87 countries with export comprising 93% of the total turnover. The most significant “Grindeks” markets include the EU countries, Russia and the other CIS countries, the U.S., Canada, Japan and Vietnam.
To increase production capacity and develop infrastructure, the company has accomplished many significant investment projects, investing nearly 105 million euros over the last 15 years.
*Notice: meldonium is included in the list of substances prohibited in sport.
Head of the Communications Department, JSC “Grindeks”
Phones: (+371) 67083370, (+371) 29256012
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