Spanish Pharma Companies Boost Profits to Over 150 Million Euros by June

Spanish pharma companies have seen their profits soar in the first half of the year. Between January and June, the combined profit of Grifols, Almirall, Faes Farma, Rovi, Reig Jofre and PharmaMar was 163.3 million euros , thus surpassing the 150 million euro mark in net profits.

The sum of the results of the five largest groups in the sector in Spain for the first half of the year is more than double that recorded in the same period of the previous year, when the pharmaceutical industry earned a total of 73.7 million euros.

The increase was led by Almirall , which increased its net profit by 28.3% until June. The company was followed by Faes Farma, which also closed the semester with rising profits, with a rise of 10%. Grifols, for its part, recovered its black figures between January and June, with a profit of 36.3 million euros, compared to losses of seventy million in the same period of the previous year.

Despite the good overall results, the rest of the listed Spanish pharma companies saw their profits fall in the first half of the year. PharmaMar saw its profits fall by 45.3%, while Rovi also saw its profits fall by double digits with a 33.5% drop. Finally, Reig Jofre posted a profit 3.5% lower than in the first half of 2023.

Almirall and Faes Farma among the Spanish pharma companies that boosted joint profits in the first half of the year, alongside Grifols, which recovered its black figures

According to the results presented by the pharmaceutical giants to the National Securities Commission (CNMV), the revenues of these five companies also rose in the first half of the year, although with a more moderate growth than profits.

Between January and June, Almirall, Faes Farma, Grifols, PharmaMar, Reig Jofre and Rovi had a turnover of 4.8 billion euros, 8.9% more than in the same period of the previous year. In this sense, the company that grew the most in the first half of the year was Reig Jofre , which increased its sales by 10.1%, up to 173 million euros.

In contrast, Rovi was the only listed Spanish pharmaceutical company to see its revenues fall in the first six months, recording a year-on-year drop of 13.5%. In absolute terms, and despite the institutional turbulence it faces, Grifols remains the largest company in the sector in Spain, with a turnover of 3.44 billion euros in the first half of the year.

Over the first six months, Spanish pharma companies made various corporate movements, from capital increases to changes in their boards. Last July, Almirall issued four million new shares of the company, issued as a result of the freed-up capital increase through which Almirall’s flexible dividend system is implemented, which were admitted to trading.

The turnover of the five Spanish pharma companies increased by almost 9% between January and June

Almirall increased its capital by 488,999 euros , after the holders of 91.5% of the free allocation rights had opted to receive new shares through the company’s flexible dividend system, as reported to the Cnmv on June 5th.

For its part, Faes Farma increased the initial plan of 150 million to 200 million euros to strengthen its production, until the announcement of new openings and expansions in its factories .

Grifols, on the other hand, was the centre of attention at the start of the year due to the turbulence it has suffered internally. The Catalan group started the year with accusations from the short-term fund Gotham City Research, resulting in the departure of several of its executives. Finally, despite Gotham’s prediction that it would not happen , the technology giant Haier bought 20% of Grifols’ stake in Shanhai Raas Blood.

However, the Catalan multinational’s shares have lost almost half their value compared to the end of 2023 and it has just started the due diligence requested by Brookfield and the owner family to prepare the possible takeover bid (OPA) to exclude the company’s capital.

Rovi was the group with the worst economic performance in the first six months

PharmaMar was another pharmaceutical company that made changes to its top management in the first six months of the year. The company appointed Swedish Andreas Segerros as CEO of Sylentis , the biotechnology company owned by PharmaMar. Another of the Madrid-based group’s bets in the first half of the year was investment in R&D, which rose by 10% until June, totalling 51.3 million euros.

Despite these positive figures, PharmaMar’s economic performance was not as satisfactory in the first half of the year, as its results plummeted and its sales grew by only 0.8%, to 80.8 million euros. The gross operating profit (EBITDA) fell by 119% , to a loss of 0.8 million euros.

Rovi, which had the worst financial results of any listed Spanish pharmaceutical company, made several announcements in the first half of the year. One of them was the completion of a plant in Granada , for which the company allocated eleven million euros. The group is also considering divesting its subsidiary that manufactures for third parties , in an operation that could be valued at 3.1 billion euros.

Finally, Reig Jofre obtained a profit of 5.5 million euros, 2% less than in 2023. The pharmaceutical company’s revenues were 173 million, 10% more, while the registered EBITDA was 20.1 million, 13% more than in the previous year.

Last June, the Catalan pharmaceutical company joined the Ibex Small Cap, a national and international benchmark index for the stock market performance of small-cap Spanish companies. In April, Reig Jofre announced an investment of 5.8 million euros in the biotechnology company Leanbio , with the aim of vertical integration in the development, characterization and production of biotechnology-based active ingredients.

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(Featured image by  Marek Studzinski via Unsplash)

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