Grifols Restates its 2021 Accounts to Reduce its Equity by €830 Million

Grifols, the Spanish company specializing in the production of plasma derivatives has restated its 2021 accounts to reduce its net worth by $873.4 million (€830 million), according to a relevant fact sent by the group to the Spanish Securities and Exchange Commission (Cnmv). Grifols clarifies that this change has no effect on the net result reported last February.

In the communication to the Spanish stock market supervisor, Grifols clarifies that it has sent the restated consolidated accounts after the firm Kpmg carried out an internal review of the company Biomat USA, in which the multinational has a stake.

As a result of this review, the auditing firm “considered it necessary to reclassify the balance sheet in relation to the non-controlling interest of the sovereign wealth fund of Singapore (GIC) in Biomat USA and Biomat NewCo,” adds Grifols in the note. In this way, the financial instrument signed with GIC has been reclassified “from equity to financial liabilities,” it continues.

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Grifols closed 2021 with a profit of $192 million (€182.3 million), compared with the $651 million (€618.5 million) recorded in 2020

Furthermore, Grifols stresses that “the figures for total assets, total equity, and liabilities, as well as the result for the year, have not been affected by this reclassification.” In mid-2021 Grifols announced that Singapore’s sovereign wealth fund would invest $1 billion in Biomat USA, a wholly-owned U.S. subsidiary of the plasma derivatives multinational.

In this way, GIC became a strategic investor for Grifols, taking a minority stake in Biomat USA through the acquisition of newly issued non-voting preferred shares, funds which Grifols would use in full to repay debt, as part of Grifols’ commitment to progressively reduce its leverage.

Grifols clarifies that its intention has always been for this financial instrument “to be considered as equity”, and therefore states that it is analyzing “the necessary modifications to the terms and conditions of the agreement with the aim of classifying this transaction as an equity instrument, as has always been the intention of the parties,” it concludes.

The Spanish pharma closed 2021 with a profit of $192 million (€182.3 million), compared with the $651 million (€618.5 million) recorded in 2020. Grifols recorded a turnover of $5.2 billion (€4.93 billion) in 2021, down 3.7% compared to 2020, in a year marked by the company’s “constant efforts to compensate for the extraordinary challenges arising from Covid-19, which triggered the reduction in plasma volumes,” the drugmaker explained in its annual results presentation.

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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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