Correction: On “Grindeks” Results in the First Six Months of 2018

Notice: missed attachment of the company's financial statements of Q2 added. 

Turnover of “Grindeks” reaches 71.5 million euro in the first six months of 2018; profit – 6.7 million euro

Today, on 30 August, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the first six months of 2018 to “Nasdaq Riga”. Non-audited financial results indicate the turnover of the Group in the first six months of 2018 was 71.5 million euro and has increased by 3.3 million euro or 5% in comparison to the first six months of 2017. In the first six months of 2018, the Group’s net profit, attributable to shareholders of the parent company, was 6.7 million euro and has increased by 0.25 million euro or 4% compared to the first six months of 2017. Gross profit margin in the first six months of 2018 was 58%, while net profit margin was 9%. In the first six months of 2018, the Group’s production was exported to 75 countries worldwide, a total of 65.7 million euro, which is by 4.5 million euro or 7% more than in the first six months of 2017.

The Chairman of the Council of JSC “Grindeks” Kirovs Lipmans: “Sustainable vision enables “Grindeks” to adapt well to the global pharmaceutical market trends and competition. Achievement of the objectives set by the Council of “Grindeks” is facilitated by permanent investments in sales and marketing, as well as innovations and constant product portfolio development”.

Sales volume of the final dosage forms in the first six months of 2018 was 65.6 million euro and increased by 3.9 million euro or 6% in comparison to the first six months of 2017. In the first six months of 2018, the sales amount in Russia, the other CIS countries and Georgia reached 43.1 million euro, which is by 1.4 million euro or 3% more than in the first six months of 2017. In comparison to the first six months of 2017, in the first half-year of 2018 the biggest increase in sales volume was reached in Uzbekistan (35%), Kirgizstan (28%), Kazakhstan (21%), Armenia and Belarus (15%) and Ukraine (12%).

Sales volume of the final dosage forms in the EU countries in the first six months of 2018 reached 21.3 million euro, which is by 2.5 million euro or 13% more than in the first six months of 2017. Sales volume in the first six months of 2018, compared with the first six months of 2017, has increased by 4 times in Poland, by 2.3 times in Czech Republic, by 2 times in Australia, by 89% in Finland, by 68% in Denmark, by 64% in the Netherlands and by 34% in Slovakia.

In the first six months of 2018, sales of the active pharmaceutical ingredients reached 4.3 million euro, which is by 0.52 million euro or 14% more than in the first six months of 2017. During this reporting period “Grindeks” mostly exported its active pharmaceutical ingredients to the EU countries, Japan, Australia and the U.S. The most required active pharmaceutical ingredients of “Grindeks” in the first six months of 2018 were dexmedetomidine, zopiclone, pimobendan, tegafur, oxytocin, medetomidine, detomidine, atipamezole.

The Chairman of the Board of JSC “Grindeks” Juris Bundulis: “From the geographical perspective, our performance in the first half-year of 2018 indicates the biggest sales growth was reached in the EU countries, which is in line with our long-term strategy to increase the presence of “Grindeks” in the stable and predictable European pharmaceutical market. The global competition remains fierce and “Grindeks” uses all its advantages to accomplish objectives”.

About “Grindeks”

“Grindeks” is an international pharmaceutical company focused on research, development, manufacturing and sales of original products, generics and active pharmaceutical ingredients. The Group of “Grindeks” has four subsidiary companies in Latvia, Estonia, and Slovakia as well as representative offices in 11 countries.

“Grindeks” specializes in the heart and cardiovascular, CNS, anti-cancer and gastroenterological medication therapeutic groups. A range of products covers a combination of original products Mildronate® (meldonium*) and Ftorafur®, generics, food supplements and active pharmaceutical ingredients.

In 2017, products of the company were exported to 77 countries with export comprising 92.5% of the total turnover. The key markets include the EU countries, Russia and the other CIS countries, the U.S., Canada, Japan and Vietnam.

To increase production capacity and develop infrastructure, the company has accomplished many significant investment projects, investing around 100 million euros over the last 15 years.

*Notice: meldonium is included in the list of substances prohibited in sport.

Further information:

Laila Klavina

Head of the Communications Department, JSC “Grindeks”

Phones: (+371) 67083370, (+371) 29256012

Fax: (+371) 67083505

Attachment