Grifols Is in the Red until March Due to Restructuring Costs
Grifols has lost around 70% of its market value since the start of the pandemic. In the eyes of investors, its main burdens are debt, which amounts to more than €9 billion after the purchase of the German Biotest, and the loss of profitability due to the increase in the cost of obtaining plasma. After the announcement of results, Grifols rebounded up to 6% in the Spanish selective early in the morning.
Grifols enters losses. The Catalan pharmaceutical company lost €108 million in the first quarter of 2023 due to restructuring costs. Without taking the adjustment plan into account, the company’s profit would have been €25.7 million, as reported by Grifols to the National Securities Market Commission (Cnmv).
The blood products company’s revenues have risen by 23.2% up to March, reaching €1.56 billion. The company’s Ebitda increased by 19% and reached €298 million.
By segments, biopharma revenues increased by 26.2%, to €1.3 billion, driven by a solid supply of plasma, while the diagnostic area registered revenues of €176 million, up 4%. The biological supplies division increased its turnover by 78%, up to €42.3 million.
The Barcelona-based pharmaceutical company has announced that it has already executed more than 80% of the initial cost savings plan that it announced at the beginning of 2023, which will mean an estimated saving impact of 450 million euros. “The simplification of our governance model and the new leadership structure will continue to drive this transformation,” said Thomas Glanzmann, Chairman and CEO of Grifols.
The company assures that it expects to recognize the impact of the adjustments from the second half of this year and aims for its Ebitda to exceed the €1.7 billion initially forecast.
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Grifols has rebounded up to 6% on the stock market first thing in the morning
Grifols, undergoing a change in structure, has lost around 70% of its market value since the start of the pandemic. In the eyes of investors, its main burdens are debt, which amounts to more than €9 billion after the purchase of the German Biotest, and the loss of profitability due to the increase in the cost of obtaining plasma. After the announcement of results, Grifols rebounded up to 6% in the Spanish selective early in the morning.
This past week, Grifols appointed Thomas Glanzmann as its new CEO, after removing from office Víctor Grifols and Raimon Grifols, who were co-CEOs of the company and who will now become members of the board of directors and occupy new positions in the multinational.
Grifols is a publicly traded Catalan pharmaceutical company. The company’s activity is focused on the research, development, manufacturing, and marketing of plasma-derived products (blood products), intravenous therapy products, and diagnostic systems, among others. The Barcelona plasma production plant is located in the town of Parets del Vallès.
(Featured image by Lukas via Pexels)
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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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