Half Year financial report
On “Grindeks” results in the first six months of 2019
“Grindeks” profit in the first six months of 2019 increases by 14% and reaches 7.65 million euro
Today, on August 29, JSC “Grindeks” submitted the non-audited consolidated financial statements of the first six months of 2019 to Nasdaq Riga. Non-audited financial results indicate that in the first six months of 2019 the Group’s profit, attributable to shareholders of the parent company, has reached 7.65 million euros. The profit has increased by 0.92 million euro or 14% in comparison to the first six months of 2018. The turnover of the first six months of 2019 was 69.0 million euro, and it has decreased by 2.6 million euro or 4% in comparison to the first six months of 2018.
JSC “Grindeks” Chairman of the Board Juris Bundulis: “To become patient-centric pharmaceutical industry representative in overall Group’s level, we are purposefully moving towards having a patient in the centre of our business. Our sustainable business model and the new commercial policy foresees continuous product range diversifying by implementing new, complex solutions to meet the needs of patients. Simultaneously, we are withdrawing products whose profitability and production volumes are low. In the first six months of 2019 we have improved the Group’s net profit margin and reached 7.65 million euro profit indicator which is a crucial step for further development. I anticipate that the Group’s turnover decrease is insignificant and will have a short-term effect.”
In the first six months of 2019, the Group’s production was exported to 68 countries worldwide, a total of 64.2 million euro, which is by 1.5 million euro or 2% less than in the first six months of 2018.
“Grindeks” sales volume of the final dosage forms in the first six months of 2019 was 63.0 million euro and it has decreased by 2.6 million euro in comparison to the first six months of 2018. In the first six months of 2019, the sales amount in Russia, the other CIS countries and Georgia reached 38.4 million euro, which is by 4.7 million euro or 11% less than in the first six months of 2018. In comparison to the first six months of 2018, in the first six months of 2019 the biggest increase in sales volume has been reached in Georgia (27%), Belarus (25%), Kirgizstan (24%), Armenia (18%) and Moldova (16%).
Sales volume of the final dosage forms in the EU countries in the first six months of 2019 reached 23.3 million euro which is by 2.1 million euro or 10% more than in the first six months of 2018.
Sales volume of active pharmaceutical ingredients in the first six months of 2019 reached 5.1 million euro which is by 0.81 million euro or 19% more than in the first six months of 2018. During this reporting period “Grindeks” mostly exported its active pharmaceutical ingredients to the EU countries, Japan, Australia and Canada. The most required active pharmaceutical ingredients of “Grindeks” in the first six months of 2019 were dexmedetomidine, detomidine and oxytocin.
About JSC “Grindeks”
“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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