Grífols’ profits up 35% in 2013 to reach over €345 million

Barcelona (ACN).- The profits of Catalan pharmaceutical company Grífols in 2013 grew by 34.6% over the previous year, reaching €345.6 million, as reported by the multinational to the Spanish Stock Exchange Regulation Authority (CNMV). The turnover of the company, based in Greater Barcelona, amounted to €2.75 billion, representing a 4.6% increase on 2012 figures. The geographical expansion of the pharmaceutical company has helped mitigating the effects of volatility in currencies, especially between the euro and the dollar. The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew by 9.6% compared to 2012 and stood at €864.6 million, driven by an increase in the sales of plasma proteins and the optimization of the expenses for raw materials and manufacturing.

Grífols has focused on boosting sales in areas less affected by austerity measures, with shorter payment periods and higher margins. For this reason, the Catalan multinational has continued to be especially active in the international market, which generated 92.4% of its revenues to reach €2.53 billion, up 5.2% over the previous year.

The world’s third largest producer of plasma-derived medicinal products

In 2013, the multinational remained the third largest producer of plasma-derived medicinal products in the world (Bioscence Division), with a global market share of approximately 20%. Furthermore, according to the Catalan company, the recent acquisition of a part of Novartis Diagnostics, closed last month, can transform Grífols into the world leader in the sector, starting this year. Meanwhile, the company’s Hospital Division continues to be the leader in Spain for providing intravenous solutions.

Improved financial result

Moreover, the improved financing conditions negotiated in early 2012 have contributed to a reduction of 12.3% of the financial result, which stood at €237.4 million compared to the €270.7 million registered in 2012. The deductions of research and development tax credit from 2012, received in the first quarter of the fiscal year, and the unification of all companies in North Carolina to be subjected to a single tax corporation have also contributed to these positive results.

Highest growths in more recently conquered markets

In the European Union, the evolution of sales has confirmed the expected recovery and, excluding Spain, grew by 4.5% to reach €361.9 million. In Spain, Grífols’ turnover growth was hindered by its Diagnostic and Hospital divisions due to budget cuts in the healthcare sector. In this case, turnover decrease has slowed down and posted a 2.4% drop compared to 2012, reaching €207.9 million, and accounting for 7.6% of the multinational’s total revenues.

But Grífols has achieved the highest growths in markets outside of the European Union and the United States. The Catalan company has consolidated its presence in the Middle East, and opened new offices in Dubai but also China, where they have been growing significantly in the past three years and are looking to develop even further in the field of immune-hematology and being a supplier of albumin. In addition, in Brazil, the company has started building a plant to manufacture wing bags to extract and preserve blood components. It has also begun conducting market researches in Turkey, India and Russia.

Cash dividends at 40% of net profit

Grífols’ equity was up in 2013 to reach €2.11 billion thanks to increased profits. Until December, the share capital amounted to €119.6 million and represented more than 213 million ordinary shares with a nominal value of €0.5 for each and 130.7 million non-voting shares with a nominal value of €0.10 per share. This year, the company has returned to paying cash dividends remaining at 40% of net profit, which corresponds to the level reached before the purchase of Talecris.