On “Grindeks” results in the first three months of 2019

 “Grindeks” reaches 30.2 million euros turnover and 3.37 million euros profit in the first three months of 2019

Today, on 30 May, the JSC “Grindeks” submitted the non-audited consolidated financial statements of the first three months of 2019 to Nasdaq Riga. Non-audited financial results indicate that the Group’s turnover of the first three months of 2019 was 30.2 million euro and has decreased by 4.6 million euro or 13% in comparison to the first three months of 2018. In the first three months of 2019, the Group’s profit, attributable to shareholders of the parent company, was 3.37 million euros and has increased by 0.17 million euro or 5% in comparison to the first three months of 2018.

JSC “Grindeks” chairman of the board Juris Bundulis: “Taking into consideration the fierce competition in pharmaceutical industry, especially in our traditional markets – Russia and other CIS countries – we are constantly improving our commercial policy. We are establishing and strengthening cooperation with pharmacy networks, signing direct cooperation contracts which is why I anticipate that the turnover decrease will have a short term effect. We have also improved the Group’s net profit margin and reached 3.37 million euro profit indicator which is a 5% increase comparing to the first three months of 2018.”

In the first three months of 2019, the Group’s production was exported to 59 countries worldwide, a total of 27.9 million euro which is by 4.4 million euro or 14% less than in the first three months of 2018.

“Grindeks” sales volume of the final dosage forms in the first three months of 2019 was 27.5 million euro and has decreased by 4.9 million euro in comparison to the first three months of 2018. In the first three months of 2019, the sales amount in Russia, the other CIS countries and Georgia reached 14.5 million euro, which is by 6.9 million euro or 32% less than in the first three months of 2018. In comparison to the first three months of 2018, in the first three months of 2019 the biggest increase in sales volume has been reached in Kirgizstan (32%), Armenia (27%), Georgia (23%), Moldova (19%), Azerbaijan and Belarus (11%).

Sales volume of the final dosage forms in the EU countries in the first three months of 2019 reached 11.9 million euro which is by 1.2 million euro or 11% more than in the first three months of 2018.

Sales volume of active pharmaceutical ingredients in the first three months of 2019 reached 2.6 million euro which is by 0.57 million euro or 29% more than in the first three months of 2018. During this reporting period “Grindeks” mostly exported its active pharmaceutical ingredients to the EU countries, Japan, Canada and the U.S..The most required active pharmaceutical ingredients of “Grindeks” in the first three months of 2019 were dexmedetomidine, detomidine and xylazine.

JSC “Grindeks” chairman of the board Juris Bundulis: “We are successfully implementing “Grindeks” Group market development strategy which positively reflects in our achieved results. Comparing to the first three months of 2018, in the first three months of 2019 we have increased sales volumes of the final dosage forms in the EU countries for 11% and reached 11.9 million euro. Demand for our injections in the EU is increasing and I would like to particularly highlight sales amount increase of gastroenterology capsule-form medicine ursodeoxycholic acid.”

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 2018, products of the company were exported to 87 countries with export comprising 93% of the total turnover. The most significant “Grindeks” 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 nearly 105 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

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