In 2020 the Grindeks Group has achieved the historically sharpest increase in turnover and profit

In 2020 the Grindeks Group has achieved the historically sharpest increase in turnover and profit


In 2020 the Grindeks Group has achieved the historically sharpest increase in turnover and profit. The consolidated, preliminary financial data of the Group show that in 2020 the turnover of the Grindeks Group reached 187.0 million euro, which is 45.6 million euro or 32% more than in 2019. In 2020 the Group’s profit amounted to 19.0 million euro, which is 5.6 million euro or 42% more than in 2019.

In 2020 the Grindeks Group has strengthened its positions in the global pharmacy market and exported its products to 93 countries for the total amount of 176.1 million euro. The Group offers its products in the pharmacy market under two brands – Grindeks and Kalceks.

Ph. D. Juris Hmelnickis, the Chairman of the Board of JSC Grindeks describes the last year as a year of significant changes and achievements: “In 2020 we began introducing new Business strategy until 2025 and made very important steps to change the business organization, work culture and the Grindeks brand. It all happened under the complex global situation, which was affected by Covid-19 pandemics. The well-coordinated team work of the Group and the ability to adapt to unexpected situations helped achieving the so far highest turnover and profit indicators. Our goals for 2021 are also ambitious and the current accomplishments give confidence in the future opportunities for Grindeks Group.”

In 2021 the Grindeks Group plans to increase the turnover by 19%.

Global expansion in new markets and strengthening positions in the existing markets

The sales volume of the Group’s final dosage forms in 2020 was 173.6 million euro and has increased compared to 2019 by 41.5 million euro or by 31%.

The sales volume in Russia, other CIS countries and Georgia in 2020 amounted to 87.7 million euro, which is 9.8 million euro or 13% more than in 2019. Compared to 2019, in 2020 significant increase of sales volume was achieved – in Uzbekistan by 39%, in Azerbaijan by 22%, in Kirgizstan by 16% and in Kazakhstan by 15%.

In 2020 the sales volume of the Group’s final dosage forms in the European Union countries, in Great Britain and Norway amounted to 76.9 million euro, which is 26.1 million euro or 52% more than in 2019. In 2020 the sales volume, compared to 2019, in Belgium increased 751 times, in Spain 81 times, in Denmark and Netherlands 5 times, in Finland 3 times, in Latvia by 37%, in Great Britain by 29%, In Estonia by 20%, while in Germany – by 10%. The high sales performance in Belgium and Spain were achieved due to the intense work and business development in the European Union countries of the company Kalceks, the subsidiary of Grindeks.

In 2020 the sales volume of the active pharmaceutical ingredients amounted to 12.5 million euro, which is 3.9 million euro or 46% more than in 2019. The highest volume of the active pharmaceutical ingredients produced by Grindeks was exported to EU countries, the USA, Japan and Canada.

The strategic goal of the Group is expanding operation in the European Union countries, USA, Japan, South Korea, Australia and New Zealand.

Covid-19 obstacles provide new opportunities

Similar as other companies, the Grindeks Group also rearranged its economic activities in 2020 due to the impact of the spread of Covid-19 virus. In order to overcome the operating obstacles caused by Covid-19, the Group defined three priorities: health protection and safety of the personnel, ensuring health needs of the patients and continued economic activity.

Covid-19 pandemics has changed the needs of the patients, therefore, the production process was rearranged to meet the growing demand and allow producing more.  The ability to operate under extraordinary situation and quickly respond to growing demand encouraged activity in new markets – Spain, Belgium, Italy, Denmark, Great Britain and other countries.

Health care solutions for contemporary requirements and dynamic lifestyle

Business strategy 2025 envisages significant expansion of the Grindeks product range by adding advanced medicines for treating cardiovascular, central nervous system, oncological diseases and diabetes, as well as Kalceks medicines for hospital use. 51 new Grindeks and 35 new Kalceks medicines are under development.

Grindeks constantly produces 25 active pharmaceutical ingredients and has accumulated knowledge in the field of active pharmaceutical ingredients business for many years. It is the unique feature and competitive advantage of the Group. Development of this segment increases the independence of the Group from raw material manufacturers, which in the future will result in a benefit of Latvian and even European Union level in patients’ access to medicines. 21 new active pharmaceuticals are under development.

Development of the subsidiary Kalceks

In 2020 JSC Kalceks, which is the subsidiary of Grindeks, specializing in medicines for hospital use, achieved sharp increase in sales volumes by increasing the number of export countries and introducing new products.  In 2020 Kalceks products were sold in the amount of 40.7 million euro, which is 24.0 million euro or 2.4 times more than in 2019. In 2020 Kalceks medicines were exported to 62 countries and the main sales markets were Spain, Belgium, Israel, Czech Republic and France.

Expanding the production infrastructure

Grindeks has started to develop a project for construction of a new pharmaceuticals production plant in Latvia. The new production plant will be constructed in several stages and will include complex processes of production of active pharmaceutical ingredients and diverse technological equipment. It will be the biggest pharmaceutical production plant in the Baltic region with automated and energy efficient technical solutions.

Pharmaceutical forms those are not currently manufactured in Latvia by Grindeks will be introduced in production: ampoules, vials, lyophilized vials, eye drops and antibiotics. 800-1000 new jobs will be created in the new plant, which will be located in Asotes Street 2a, Riga.

If the construction project will be successfully approved, the construction of the new production plant is due to begin in 2022.

Kirovs Lipmans, the Chairman of the Board of JSC Grindeks highly rates the performance of Grindeks Group in 2020: “Although the situation last year was not simple and easy, Grindeks Group has increased its competitiveness in the global pharmaceutical arena by offering effective medicines and useful health care solutions. Business strategy 2025 is being implemented and shows excellent results. I would like to thank the employees and cooperation partners for the achievements!”

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