He defends that his accounting treatment “is fully endorsed” by KPMG

Grifols has assured that it does not understand the interpretation that Gotham City Research has made of different operations carried out by the company, “unless the only thing it intends, as a short-term fund that it is, is to lower the share price” to obtain profits. .

In a statement sent to the National Securities Market Commission (CNMV) this Tuesday, Grifols recalled that the bearish firm’s own report reflects that Gotham had short positions in the Catalan company.

The analysis firm Gotham City Research, the bearish investor that triggered the Gowex scandal in 2014 with a report, has published a report on the blood products company, which it accuses of manipulating its debt ratios and gross operating income ( Ebitda) to artificially reduce leverage, which is why it warns that its shares would be “non-investable.”

Grifols has reviewed the accounting treatment it has carried out in the operations that appear in the Gotham report and has recalled that this treatment “is fully endorsed” by its auditor, KPMG.

Furthermore, he has assured that the operations “have been recorded in the company’s books and in its public accounts”, presented to both the CNMV and the US SEC, which is why he affirms that there is no new information that can be considered hidden. .


Grifols has recalled that it bought Haema in June 2018 for 220 million euros and Biotest in August 2018 for 286 million dollars, and that Scranton – an investment company of the Grifols family along with directors and former directors – acquired both companies for same price.

He explained that “under a management contract, Grifols continues to manage the Biotest and Haema plasma centers” and that it purchases all the plasma obtained in these companies in a 30-year contract.

In addition, he has indicated that the purchase and sale contract with Scranton includes a purchase option in favor of Grifols on all of the shares of said companies, which he has stressed is exclusive and is not an obligation.

On the other hand, Grifols points out that the financial entity that used Scranton for the operation imposed as a condition “the signing of a ‘vendor’s financing’, a loan from Grifols to Scranton”, even though it has assured that the company did not need the credit.

This loan was for 95 million dollars, with interest of Euribor plus 2% and maturing on December 28, 2025.

Grifols has indicated that, according to the IFRS 10 accounting standard, it has the potential purchase rights to consider that it sustains power over both companies and there has been no loss of control, “which is why the entities continue to consolidate.”


In addition, Grifols has explained that according to its accounting criteria, it maintains “operational, political and economic control” of Grifols Diagnostic Solutions (GDS), which is why it continues to consolidate.

He recalled that at the time of the purchase of Shanghai Raas in March 2019, he delivered 90 GDS shares representing 45% of the economic rights and 40% of its voting rights, in exchange for 26.2% of the share capital. of the Chinese company.

“The results generated by GDS from 2020 are consolidated in the consolidated financial statements of the Group and are attributed to the minority based on their participation,” he noted.


Regarding the leverage ratio (which Gotham points out is 10 to 13 times instead of the 6 that the company records in its latest accounts), Grifols points out that it is calculated quarterly “in accordance with the clauses, terms and conditions agreed upon in the Credit and Guaranty Agreement dated November 15, 2019.”

“The financial information used for said calculation is prepared in accordance with the International Financial Reporting Standards in force at the time of said preparation, as well as the accounting principles and policies applied in the preparation of the Consolidated Financial Statements with the exception of IFRS 16” , he pointed out.


Finally, Grifols recalled that it has contracted confirmation operations with various financial entities to manage payment to suppliers.

These operations give rise to a liability of less than 10 million euros, which it states “are not significant for the Group”, which is why it does not break down the information in its annual accounts.