On “Grindeks” results in the first quarter of 2020

In the first quarter of 2020 “Grindeks” profit grew by 43.6%

Today, on 30 May, the JSC “Grindeks” submitted the non-audited consolidated financial statements of the first quarter of 2019 to Nasdaq Riga. Non-audited financial results indicate that Group’s turnover of the first quarter of 2020 reached 43.3 million euro, which is by 13.2 million euro or 43.6% more, then in the first quarter of 2019. In the first quarter of 2020, the Group’s profit, attributable to shareholders of the parent company was 0.8 million euro and has decreased by 2.6 million euro or 77% in comparison to the first quarter of 2019.     

The decrease in profit in the first quarter of 2020 can be explained by the sharp increase in logistic costs and the depreciation of the Russian ruble. In April 2020, there was a positive trend towards a gradual normalization of the Russian ruble, and the results of the four months of this year show that most of the losses caused by depreciation of the ruble has already been recovered.

In the first quarter of 2020, the Group exported products to 63 countries around the world for a total of 40.3 million euro, which is by 12.4 million euro or 45% more than in the first quarter of 2019.

JSC „Grindeks” Chairman of the Board Ph.D. Juris Hmelnickis: “The first quarter of this year has passed in much more difficult conditions, than usual. The global emergency and measures applied to limit the spread of the Covid-19 virus have contributed to drastic changes in the business environment, including the pharmaceutical sector. There were even days when the situation changed almost every minute and decisions had to be made very quickly. Satisfaction with the work done is great - the “Grindeks” Group was able to operate successfully, respond quickly to the growing demand and significantly increase turnover.” 

Sales volume of the final dosage forms in the first quarter of 2020 was 40.1 million euro and has increased by 12.5 million euro or 46%, in comparison to the first quarter of 2019. In the first quarter of 2020 sales in Russia, other CIS countries and Georgia reached 21.6 million euro, which is by 7.1 million euro or 49% more than in the first quarter of 2019. Compared to the first quarter of 2019, sales in Russia and Turkmenistan have doubled. In the first quarter of 2020 the biggest increase in sales volume has been reached in Georgia (64%), Kazakhstan (13%) and Uzbekistan (7%).

Sales volume of the final dosage forms in the EU countries, Great Britain and Norway in the first quarter of 2020 reached 17.7 million euro, which is by 5.7 million euro or 48% more than in the first quarter of 2019. In comparison to the 2019, in the first quarter of 2020 sales volumes also increased in Denmark (8 times), the Czech Republic (5 times), the Netherlands and Finland (2 times), Hungary (83%), Estonia (40%) and the United Kingdom (39%).

In the first quarter of 2020 sales volume of active pharmaceutical ingredients reached 3.0 million euro, which is by 0.4 million euro or 17% more than in the first quarter of 2019. The largest export countries of “Grindeks” active pharmaceutical ingredients during the reporting period were the EU countries, the USA, Australia and Singapore. In the first quarter of 2020 the most demanded active pharmaceutical ingredients of “Grindeks” were pimobendan, oxytocin and atipamezole.

The subsidiary of “Grindeks” JSC “Kalceks”, which specializes in medicines for the hospital segment, achieved a rapid increase in sales in the first quarter of 2020. Sales volumes of JSC “Kalceks” during the first quarter of 2020 reached 8.5 million euro, which is by 6.5 million euro or 4 times more than in the first quarter of 2019. JSC “Kalceks” main sales markets were Belgium, Italy, the Czech Republic, Denmark and Germany.

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 anti-diabetes medicines. A range of products covers a combination of original products Mildronate® (meldonium*) and Ftorafur®, generics and active pharmaceutical ingredients.

In 2019, products of the company were exported to 84 countries. The most important export markets of "Grindeks" are the EU countries, Russia and other CIS countries, the USA, Canada and Japan.

Further information:

Laila Klavina

Head of the Communications Department, JSC “Grindeks”

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

Fax: (+371) 67083505

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