Its shares lead the rises of the Ibex 35 with an increase of 9.51%
Grifols obtained a profit of 3.32 million euros in the first nine months of this year, which represents a decrease of 98.2% compared to the same period of the previous year, as reported this Thursday by the company, which has also confirmed the closing of the sale operation of the Chinese Shanghai RAAS in the first half of 2024.
“We are progressing and working with full dedication and effort to sign the agreement and we hope to be able to announce it before the end of 2023, as we committed. Being a highly regulated environment, we hope to obtain all approvals and close the transaction during the first half of 2024,” said the company, whose shares bounced 9.51% around 10:30 a.m., up to 11.52 euros, leading the gains of the Ibex 35.
The blood products company earned 4,822 million euros between January and September 2023, 10.8% more than a year before, while the adjusted gross operating result (Ebitda) reached 1,028 million, with a margin of 23.2 %.
At the end of September, Grifols had a liquidity position of 1,134 million euros and a treasury position of 484 million euros.
In the third quarter of the year, the firm recorded a profit of almost 60 million euros, 35.2% more, compared to the 44.5 million recorded in the same period of 2022, while increasing its quarterly income by 3.6%, up to 1,597 million euros.
The company has highlighted in a press release that it has once again recorded another quarter marked by “significant” growth in revenue, an acceleration in profitability, as well as the reaffirmation of its deleveraging commitment.
Thus, the executive president and CEO of Grifols, Thomas Glanzmann, has assured that Grifols’ performance and the “strengthening of its fundamentals” reflect the firm’s commitment to improving the business “so that it reaches its full potential, maximizing value.” for all its interest groups”.
He has also stated that the “strong” revenue growth and improved margins “are a consequence of the execution of Grifols’ growth strategy and the successful implementation of its operational improvement plan.”
Grifols has updated its forecasts to an adjusted Ebitda of 1,450 million euros in 2023 and revenue growth of between 10% and 12%.
LEVERAGE
Grifols has explained that “deleveraging remains a priority” and has reiterated its commitment to deleveraging its balance sheet.
In the third quarter, the leverage ratio was reduced to 6.7 times due to the improvement in Ebitda and the generation of operating cash flow amounting to 262 million.
The company has recalled the commitment to reach 4.0x by the end of 2025 and to sign and announce an agreement for a deleveraging operation before the end of 2023.
Excluding the impact of IFRS 16, net financial debt amounted to 9,540 million, and as of September 30, 2023, Grifols had a liquidity position of 1,134 million euros and a treasury position of 484 million euros.
INCOME BY SEGMENTS
By business segments, Biopharma’s revenues grew by 14.5% cc year-on-year until September, up to 4,066 million, and 3,699 million and 10.7% cc more if Biotest is excluded.
Immunoglobulin sales grew 17.4% cc in the third quarter and helped drive growth in the first nine months of 2023 to 14.9%, excluding Biotest.
Diagnostic increased its revenues by 0.9% cc, to 498 million, until September, and Bio Supplies’ turnover grew by 22.8% cc, to 119 million.
Plasma supply grew steadily, with a 10% increase until September, and the company explained that “the satisfactory execution of the operational improvement plan” has resulted in a 22% reduction in cost per liter (CPL). , which will improve margins in the future.
NEW DIRECTORS
During the third quarter, Grifols has hired Jörg Schüttrumpf as Director of Scientific Innovation (CSIO) for the entire group.
Schüttrumpf will focus “on accelerating the development of differentiated plasma and non-plasma medicines in key therapeutic areas.”
Additionally, Miguel Louzan has been named Chief Digital Information Officer (CDIO) and will lead the digital and data transformation.
