Published: 2015-11-27 17:01:25 CET
Grindeks
Quarterly report

On “Grindeks” financial results in the nine months of 2015

Riga, Latvia, 2015-11-27 17:01 CET -- Today, on 27 November, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the nine months of 2015 to “NASDAQ Riga”. Non-audited financial results indicate that the Group’s turnover amounted to 63.5 million euros and has increased by 0.3 million euros or 0.6% in comparison to the first nine months of 2014. While the Group’s net profit, attributable to shareholders of the parent company, was 3.9 million euros in the first nine months of 2015 and has increased by 0.2 million euros or 5.7% in comparison to the three quarters of 2014. Gross profit margin in the three quarters of 2015 was 44% while net profit margin was 6.1%. In the nine months of 2015 the Group’s production was exported to 63 countries worldwide, a total of 56.9 million euros which is 2.8 million euros or 4.7% less than in the nine months of 2014.

Statement of comprehensive income in the first nine months of 2015

 

  2015 2014
  January-September January-September
           EUR          EUR
     
Net sales 63,476,102 63,126,897
Cost of goods sold (35,556,249) (26,293,846)
Gross profit 27,919,853 36,833,051
     
Selling expenses (12,844,960) (15,539,886)
Administrative expenses (9,132,488) (8,726,579)
Other operating income 5,389,018 1,760,352
Other operating expenses (6,596,191) (10,188,242)
Interest income and similar income 108,869 103,403
Interest expenses and similar expenses (320,819) (196,021)
Real estate tax (92,884) (73,682)
Profit before taxation 4,430,398 3,972,396
Corporate income tax (559,122) (311,807)
NET PROFIT FOR THE PERIOD 3,871,276 3,660,589
     
Other comprehensive income     
Foreign currency revaluation (5,201) (12,193)
Other comprehensive income total (5,201) (12,193)
Other comprehensive income  3,866,075 3,648,396
     
Attributable to:    
Equity holders of the parent 3,864,821 3,657,462
Non-controlling interest 6,455 3,127
TOTAL 3,871,276 3,660,589

  

Comprehensive income attributable to:    
Equity holders of the parent 3,859,620 3,645,269
Non-controlling interest 6,455 3,127
Total 3,866,075 3,648,396
     
Earnings per share attributable to the equity holders of the parent    
   (EUR per share) 0.40 0.38

 

Sales volume of the final dosage forms of “Grindeks” in the first nine months of 2015 was 56.5 million euros and has increased by 0.9 million euros or 1.6% in comparison to the first nine months of 2014. The sales amount in Russia, other CIS countries and Georgia reached 32.4 million euros in the first nine months of 2015, which is by 12.8 million euros or 28.4% less than in the first nine months of 2014. In comparison to the first nine months of the previous year the biggest increase in sales volumes has been reached in Armenia (20%), Georgia (39%), Kirgizstan (16%) and Turkmenistan (22%).  

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 24.1 million euros, which is by 13.7 million euros or 2.3 times more than in the first nine months of 2014. The sales volume in the Netherlands in comparison with first nine months of 2014 has increased 6.5 times, in Slovakia – 3 times, while in Vietnam by 91%, Portugal – 89%, Poland – 56%. The sales volume in Latvia in the first nine months of this year accounted to 4.7 million euros and has increased by 1.7 million euros or 57.1% comparing with the first nine months of last year.

In the first nine 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 widened its offer in the gastrointestinal tract and metabolism drug therapeutic group. “Grindeks” has also widened its range of food supplements and introduced two new products – the latest generation lactic acid bacteria and bifidobacteria complex Lactobex® Strong and Herbastress® night.  Both products are distributed in the Baltics.

 In the first nine months of 2015, sales of the active pharmaceutical ingredients reached 5.8 million euros, which is by 1.6 million euros or 22% less than in the first nine months 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 nine months of 2015 were Oxytocin, Zopiclone, Ftorafur (Tegafur), Detomidine and Xylazine.

The Chairman of the Board Mr. Juris Bundulis: “Our operations in the new markets are succeeding and bringing remarkable results, approving that our business diversification strategy is right. It is particularly pleasing that the sales indicators in Latvia have increased by 57% comparing with the same period last year. However, we have to admit that ongoing situation and events in our key markets – Russian and Ukraine – is still heavy affecting performance indicators of the joint stock company “Grindeks”. Therefore, by expanding our operations in new markets, using our experience and expertise the equal emphasis will be put on the CIS countries as well.”  

“Grindeks” 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 more than 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.

         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_Q3.pdf