The multinational blood products Grifols obtained a net profit of 3.3 million euros until September, which has allowed it to return to profits, after the losses of 56 million that it accumulated at the end of the first semester, as explained to the National Commission of the Stock Market. The Grifols family group, which is now chaired and directed by Thomas Glanzmann, also managed to increase its income by 11.7 percent, to 4,822 million.
Glanzmann explained in a statement that “the strong revenue growth and improved margins are a consequence of the execution of our growth strategy and the successful implementation of our operational improvement plan,” and reiterated the “deleveraging commitment.” and, to achieve this, the objective of “signing and announcing” some sale of assets before the end of the year.
Glanzmann acknowledged that the sale of his stake in the Chinese company Shanghai Raas, for which he expected to earn around 1.4 billion euros, is being delayed. “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. As this is a highly regulated environment, we expect to obtain all approvals and close the transaction during the first half of 2024.”
Grifols closed the quarter with a net financial debt of 9,540 million euros, which has reduced its weight to 6.7 times its operating profit or Ebitda, due to its growth (which reduces the ratio), and due to the generation of cash, which contributed 262 million euros. The company has committed that it will not represent more than 4 times Ebitda by the end of next year. The group plans to close this year with an adjusted Ebitda (not including the cost of its restructuring plan) of 1,450 million euros, which would mean placing its debt next year at around 7,000 million euros.
The Catalan group explained to the CNMV that its income has been boosted by its biopharma division, focused on the sale of plasma proteins, especially immunoglobulins and albumin, which benefit from price increases, an increase in demand, its strategy to grow outside the US and for the continued sustainable supply of plasma, after the drop in donations suffered during the pandemic.
Thus, the supply of plasma increased by 10%, while the cost per liter is already 22% lower than the peak it reached in July of last year, due to the decrease in the payments offered to donors, the closure of some centers of unprofitable plasma, and the improvement of structural and process costs, actions that have brought annualized savings of 450 million euros.
The lower cost of its raw materials, Grifols recalled, will translate into better margins next year, since its operating cycle lasts about nine months. Its adjusted gross margin reached 41 percent in the third quarter, and has increased by 400 basis points over last year, prompting the company to upgrade its ebitda forecast. This improvement in profitability has caused Grifols shares to rise by 6% at the opening.
Grifols' smaller divisions had a poorer performance in the first nine months of the year: Diagnostics increased its revenues by 0.9%, to 498 million euros, while Bio Supplies grew by 22.8%, up to 119 million euros.
