The Catalan pharmaceutical company Grifols has assured that it “is making firm progress in its strategic plan” and expects its revenues to grow in double digits in the second half of 2022 compared to the same period last year. In addition, the company has reiterated its commitment to reduce debt levels and increase the company’s cash flow, according to a statement issued Monday to the National Securities Market Commission (Cnmv).
The Catalan company’s communication comes after plummeting 20% in the stock market in two weeks. Following the notification to the Cnmv, Grifols shares have risen by up to 2.5% on the stock market, after reaching their lowest levels in almost a decade last Wednesday. The decline in Grifols’ share price began with the pandemic hit, when it was experiencing operational difficulties in collecting plasma.
Grifols’ board of directors has assured that, in a context of “considerable geopolitical uncertainty and market volatility”, the company’s fundamentals “remain solid and robust”.
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Grifols will bring in two new executives to head the Biopharma and Plasma Procurement business units
The company has sought new recruits to calm the markets and says it will bring in two new executives “with recognized international experience” to head the Biopharma and Plasma Procurement business units.
In addition to the new executives, Grifols noted that it has implemented a “reorganization of the company and its key operational processes”, which it says will bring greater agility and focus to the business units.
The pharmaceutical company also stressed in its statement that its main innovation projects, Biotest AG and IgM and fibrinogen proteins, will contribute significantly to the business.
The board also notes that, as of August 31st, 2022, the company had cash and undrawn financial lines totaling more than €1.3 billion and reiterates that its focus is on creating value for all shareholders.
Grifols to report quarterly results from Q1 2023
Grifols’ board said in the statement that it plans to continue to improve the frequency and effectiveness of its communications and announced that it intends to publish quarterly earnings reports from Q1 2023, even though it is not required to do so under Spanish law.
In its statement, the blood products manufacturer notes that plasma procurement has recovered from the lows during the pandemic and that, since May 2022, monthly plasma procurement volume has been exceeding the average monthly volume for 2019. The company also notes that it has been working on reducing operating costs, which adds up to an increase in plasma collected that has driven an increase in sales.
Grifols reduced its profit by 46% through June, a period in which it earned €144.1 million. In 2021, the pharmaceutical company specializing in the production of plasma derivatives closed the year with a profit of €182.3 million, compared with the €618.5 million recorded in 2020.
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First published in PlantaDoce, a third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the original will prevail.
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