Published: 2015-08-28 16:05:01 CEST
Grindeks
Half Year financial report

On “Grindeks” financial results in the first six months of 2015

Riga, Latvia, 2015-08-28 16:05 CEST -- Today, on 28 August, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the first six months of 2015 to “NASDAQ Riga”. Non-audited financial results indicate that the Group’s turnover amounted to 43.8 million euros and has increased by 3.1 million euros or 8% in comparison to the first six months of 2014. While the Group’s net profit, attributable to shareholders of the parent company, was 3.2 million euros in the first six months of 2015 and has increased by 0.4 million euros or 14% in comparison to the first six months of 2014. Gross profit margin in the first half year of 2015 was 45% while net profit margin was 7%. In the first six months of 2015 the Group’s production was exported to 55 countries worldwide, a total of 40.0 million euros which is 1.3 million euros or 4% more than in the first half year of 2014.

Sales volume of the final dosage forms of “Grindeks” in the first six months of 2015 was 39.4 million euros and has increased by 4.9 million euros or 14% in comparison to the first six months of 2014. The sales amount in Russia, other CIS countries and Georgia reached 23.6 million euros in the first six months of 2015, which is by 5.3 million euros or 18% less than in the first half year of 2014. In comparison to the first six months of the previous year the biggest increase in sales volumes has been reached in Armenia (18%), Georgia (27%), Kirgizstan (28%) and Turkmenistan (26%). In the first six months of 2015 “Grindeks” has complemented its range of products and introduced the final dosage form (capsule) of Ursodeoxycholic acid (UDCA) and started its export to Russia and Georgia. Thereby “Grindeks” has widended its offer in the gastrointestinal tract and metabolism drug therapeutic group.

Thanks to successful business diversification and the development of company’s activities in new markets, turnover of the final dosage forms in the Baltic States and other countries amounted to 15.9 million euros, which is by 10.2 million euros or 2.8 times more than in the first six months of 2014. The sales volume in Poland in comparison with first six months of 2014 has increased 6.4 times, while in Vietnam 2.6 times. The sales volume in Latvia in the first six months of this year accounted to 3.1 million euros and has increased by 1.3 million euros or 72% comparing with the first six months of last year.

In the first half year of 2015, sales of the active pharmaceutical ingredients reached 4.1 million euros, which is by 2.0 million euros or 33% less than in the first half year of 2014. Main markets of “Grindeks” active pharmaceutical ingredients are the EU countries, USA, Canada and Japan. The most required active pharmaceutical ingredients of “Grindeks” in the first half year of 2015 were Oxytocin, Zopiclone, Xylazine, Medetomidine and Pimobendan.

The Chairman of the Board Mr. Juris Bundulis: “Current events and changes in the global economy are strongly influencing Latvian exporters, including the joint stock company “Grindeks”. Step by step our implemented business diversification is bringing positive results, therefore I am pleased with “Grindeks’s” performance in Vietnam, Poland and other countries outside company’s usual markets. Deeply committed we will continue to make investments in the development of new markets. For all that, to reduce the business risks as well as improve our operations, we are still going to pay great attention to CIS countries.”

“Grindeks’s” photos: http://www.grindeks.lv/en/for-media/gallery

About “Grindeks”

“Grindeks” is an international, vertically integrated pharmaceutical company. Main fields of action are research, development, manufacturing and sales of original products, generics and active pharmaceutical ingredients. The Group of “Grindeks” consists of five subsidiary companies in Latvia, Estonia, Russia and Slovakia as well as representative offices in 13 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 generics included therein. Currently “Grindeks” produces 25 active pharmaceutical ingredients.

Products of the company are exported to 60 countries and its export comprises 94% of the total turnover. The main markets are: Russia and other CIS countries, the Baltic States, the Netherlands, Germany, Canada, the U.S., France, Ireland and Japan.

To increase production capacity and develop infrastructure, since 2002 the company has accomplished many significant investment projects, investing more than 70 million euros over the years.

JSC “Grindeks” shares are listed on the Official List of “NASDAQ Riga”. Major shareholders of JSC “Grindeks” are Kirovs Lipmans – 33.29%, “AmberStone Group”, AS – 22.66%, Anna Lipmane – 11.38%, “Swedbank” AS Clients Account (nominee account) – 9.92%.

         Further information:
         Laila Klavina
         Head of the Communications Department, JSC “Grindeks”
         Phones: (+371) 67083370, (+371) 29256012
         Fax: (+371) 67083505
         laila.klavina@grindeks.lv


Grindeks_financial_statements_2015_Q2.pdf