On Grindeks audited results in 2016

On Grindeks audited results in 2016


Today, on 28 April, the JSC Grindeks submitted the audited consolidated financial statements of 2016 to “Nasdaq Riga”. Audited financial results indicate that in 2016 Turnover of the Group in 2016 was 105.4 million euro and has increased by 22.7 million euro or 27% in comparison to 2015. In 2016, the Group’s net profit, attributable to shareholders of the parent company, was 9.5 million euro and has increased by 8.5 million euro or 9 times compared to 2015. Gross profit margin in 2016 was 55%, while net profit margin was 9%. In 2016, the Group’s production was exported to 71 countries worldwide, a total of 95.7 million euro which is by 21.7 million euro or 29% more than in 2015.

The Chairman of the Council of JSC Grindeks Kirovs Lipmans: “Grindeks results in 2016 are very encouraging and confirm the ability to implement our advantages. We are recovering our positions in Russia and other CIS countries, as well as we are developing in new markets dynamically. The restructuralization, which lasted for several years, has a convincingly good result that is why I am sure, that we will increase the turnover by at least 10% in 2017. One of Grindeks strengths is our staff, so as it was previous year, we are going to pay our special attention to personnel policy, developing result-oriented motivation system and strengthening the team. One of the most important decisions of Council is salary increase according to each employee’s individual performance.”

Sales volume of the final dosage forms of Grindeks in 2016 was 97.5 million euro and has increased by 23.6 million euro or 32% in comparison to 2015. In 2016, the sales amount in Russia, other CIS countries and Georgia reached 58.2 million euro, which is by 16.9 million euro or 41% more than in 2015. After assessment of potential currency risks Grindeks limited its operations in Central Asia countries, thus, the export to these countries was reduced. In comparison 2015, the biggest increase in sales volume has been reached in Russia (2.1 times), Moldova (17%), Ukraine (12%), Belarus (10%) and Georgia (10%).

Due to the business diversification strategy and the development of company’s activities in the new markets, in 2016 the sales volume in the Baltic States and other countries reached 39.3 million euro which is by 6.8 million euro or 21% more than in 2015. The sales volume compared to 2015 in Denmark has increased by 58.2 times, in Mongolia – 7.6 times, in Belgium – 6.9 times, in Tunisia – 4.3, in Croatia –2.7 times, in Nigeria – 2.3 times, in the Netherlands – 2.1 times while in Spain it has increased by 2 times. In 2016, the sales volume in Latvia reached 7.3 million euro and has increased by 1.3 million euro or 21% in comparison to 2015. In 2016, compared to 2015, remarkable increase in sales has been reached also in the other Baltic States – in Lithuania by 21% and Estonia by 11%.

In 2016, sales of the active pharmaceutical ingredients reached 6.3 million euro, which is by 0.9 million euro or 11.9% less than in 2015. In 2016 in comparison to 2015 2.2 times more active pharmaceutical ingredients were produced for own needs in order to manufacture final dosage forms.

During this reporting period, Grindeks exported its active pharmaceutical ingredients to the EU countries, U.S., Australia and Japan. The most required active pharmaceutical ingredients of Grindeks in 2016 were oxytocin, zopiclone, droperidol, detomidine and pimobendan.

The Chairman of the Board of JSC Grindeks Juris Bundulis: “Increase in sales of final dosage forms, as well improvement of business process and governance contributed the rapid growth of turnover and profit in 2016. On the basis of achieved results is constant and focused long-term cooperation with patients, clients and partners. At present moment, we are exporting our products to 71 countries worldwide and certainly we are not going to stop on it. Our employees’ knowledge, experience in international markets and products in demand are the guarantee of our competitiveness.”

Related posts