Profit of “Grindeks” in the first nine months of 2012 – 5 million lats
Today, on 23 November, the financial statements of the JSC “Grindeks” on the first nine months of 2012, submitted to “NASDAQ OMX Riga”, indicate that the Group’s turnover in the first nine months of 2012 amounted to 50.1 million lats, which is by 1.2 million lats or 2.5 % more than in the first nine months of 2011. Whereas, the net profit of the Group, related to the shareholders of the holding company, amounted to 5 million lats in the first nine months of 2012, which, in comparison with the first nine months of 2011, has decreased by 0.8 million lats or 13.8%. The indicators of the turnover and profit have been affected by the active pharmaceutical ingredients business, where a part of clients have reviewed the manufacturing plans and postponed the deliveries to the fourth quarter of the year. During the first nine months of 2012 the products manufactured by the Group were exported to 50 countries all over the world for the total amount of 47.4 million lats, which is by 1.3 million lats or 2.8 % more than in the first nine months of 2011.
The sales volume of the final dosage forms of “Grindeks” was 46.7 million lats in the first nine months of 2012 and has increased comparing to the same period of the previous year by 5 million lats or 12%. The main markets of the final dosage forms are Russia, other CIS countries, Georgia and the Baltic States. The sales amount in Russia, other CIS countries and Georgia reached 40.4 million lats in the first nine months of 2012, which is by 4.9 million lats or 13.8% more than in the respective period of 2011.Whereas, the sales amount of final dosage forms in the Baltic States and other European countries reached 6.3 million lats, which is by 0.2 million lats or 3.3% more than in the first nine months of 2011.
In the first nine months of 2012 the growth in demand of the final dosage forms is explainable by the effective marketing and sales activities. Overall, 20.57 million packages were sold, which compared to the first nine months 2011 is by 1.4 million or 7.3% packages more. The most demanded products of “Grindeks” in the first nine months of 2012 – the brand product Mildronate®, ointments – Capsicam®, Viprosal B®, central nervous system affecting medications – Somnols®, Cyclodol®, the original anti-cancer agent Ftorafur® and the natural product Apilak-Grindeks. In particular, the remarkable sales increase was for product Somnols® by 29.8%.
In the first nine months of 2012 the sales of the active pharmaceutical ingredients reached 3.4 million lats, which is by 3.8 million lats or 52.8% less than in the first nine months of 2011. Part of the active pharmaceutical ingredient clients has reviewed their manufacturing plans for the year of 2012, postponing the deliveries to the fourth quarter of the year. The main export markets of active pharmaceutical ingredients of “Grindeks” are Germany, the Netherlands, Japan and the U.S. The most demanded pharmaceutical ingredients of “Grindeks” are: zopiclone, oxytocin, ftorafur (tegafurum), UDCA (ursodeoxycholic acid) as well as the veterinary products – detomidine, medetomidine. Overall “Grindeks” produces 22 active pharmaceutical ingredients.
“Grindeks” Member of the Board and Chief Finance and Administrative Officer Vadims Rabsha: “Nine-month operating results of “Grindeks” show a growing demand for the final dosage forms and sales growth of 12%. That was advanced by the effective marketing and sales organization, as well as the company’s permanent, long-term relationship with patients, clients and partners. Our strategy of diversifying the range of products and market operations is delivering positive results and growth in exports. The preliminary sales figures of active pharmaceutical ingredients for October and November show that also the results of this business will improve.”
“Grindeks” is the leading pharmaceutical company in the Baltic States. Its main fields of action are: research, development, manufacturing and sale of original products, generics and active pharmaceutical ingredients. The Group of “Grindeks” consists of four subsidiary companies in Latvia, Estonia and Russia, as well representative offices in eleven countries.
“Grindeks” specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups. A range of products covers a successful combination of original products and generics, with the original products Mildronate® and Ftorafur® and more than 100 forms of effective and safe generics included therein. Currently “Grindeks” produces 22 active pharmaceutical ingredients.
Products of the company are exported to 50 countries and its export comprises more than 95% of the total turnover. The main markets are: Russia and other CIS countries, the Baltic States, Germany, the Netherlands, Japan and the U.S. In 2010 the Ministry of Economics of Republic of Latvia and the Investment and Development Agency of Latvia awarded “Grindeks” as the most export potential company of Latvia.
During the last years the company realized many considerable investment projects in purpose to increase production capacity and develop infrastructure and invested 32.7 million lats within five years.
JSC “Grindeks” shares are listed on the Official List of “NASDAQ OMX Riga”. Major shareholders of JSC “Grindeks” are Kirovs Lipmans – 33.29%, Anna Lipmane – 16.69%, “AB.LV Private Equity fund 2010” – 11.38%, “Skandinaviska Enskilda Banken” (nominal holder) – 10.22%, “Swedbank” AS Clients Account (nominal holder) – 8.58%.
More information about the company – www.grindeks.lv/en/
Head of the Communications Department, JSC “Grindeks”
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505