On Grindeks financial results for 2011

On Grindeks financial results for 2011


Today, on 24 February, JSC Grindeks has submitted the non-audited consolidated financial statements for 2011 to “Nasdaq OMXRiga”. Non-audited financial results show that the turnover of the Group of Grindeks amounted to 69.6million lats in 2011, which is by 4.5 million lats or 6.9% more than in 2010. In its turn, net profit related to the shareholders of the holding company amounted to 6.7 million lats in 2011, which, in comparison with 2010, has decreasedby 0.4 million lats or 5.6%. In 2011, gross profit margin of the Group was 58.9%, whereas, net profit margin comprised 9.6%. Products of the Group, manufactured during the Year 2011, were exported to 50 countries worldwide for the total amountof 65.8 million lats.

In 2011, ROE was 10.8%; ROA was 8.9%; ROS was11.2%; liquidity was 2.98.

Sales volume of the final dosage forms of Grindeks was 60.4 million lats in 2011 and has increased by 2.7 million lats or 4.7% more in comparison with 2010. The main markets of the final dosage forms are Russia, other CIS countries, Georgia and the Baltic States. The sales amount in Russia, other CIS countries and Georgia reached 51.8 million lats in 2011, which is by 1.6 million lats or 3.2% more than in 2010. In its turn, turnover of the final dosage forms to the Baltic States and other European countries reached 8.6million lats, which is by 1.1 million lats or 14.7% more than in 2010. The most demanded products of Grindeks are the brand product Mildronate®, ointments – Capsicam®, Viprosal B®, Sulfargin®, central nervous system medications – Somnols®, Rispaxol® and the original anti-cancer medication Ftorafur®.

In 2011, sales of the active pharmaceutical ingredients reached 9.2 million lats, which is by 1.8 million lats or 24.3% more than in 2010. The main active pharmaceutical ingredient export markets for Grindeks are Germany, the Netherlands, Japan and the U.S. The most demanded pharmaceutical ingredients of Grindeks are: zopiclone, oxytocin, ftorafur (tegafur), UDCA (ursodeoxycholic acid) as well as the veterinary products – detomidine, medetomidine, atipamezole and xylazin. Overall Grindeks produces 22 active pharmaceutical ingredients. In 2011, the company introduced 7 new active pharmaceutical ingredients. In 2011, the zopiclone of Grindeks share of the world market was 25%, while the oxytocin ’s share of the world market was 30%. Grindeks veterinary substances’ market share in the EU amounted to 32% of the European Union market.

Chairman of the Board of JSC Grindeks Juris Bundulis: “In the foreground of our business is the patient –a human being with his health. It helps people both in times of need and inimproving the quality of life. On the one hand, this business has a humanitarian character, on the other hand, it is a business that requires enormous resources, besides, competition, both in the final dosage form and in the active pharmaceutical ingredient business, is very fierce. However, it gives a stimulus to develop and look for new solutions. In 2011, Grindeks continued to strengthen its position in existing markets and increased the turnover up to 69.9 million lats. In order to achieve better results in the future and to offer patients more efficient and modern medications, the strategic priority of Grindeks will be the product range expansion. In addition to existing therapeutic groups, Grindeks will develop new therapeutic directions – gastrointestinal and antimicrobial medications. In 2012, Grindeks will also pay special attention to strengthening the position of the foreign representative offices in all markets.


About Grindeks

Grindeks is the leading pharmaceutical company in the Baltic States. Its main fields of action are: research, development, manufacturing and sale of original products, generics and active pharmaceutical ingredients. The Group of Grindeks consists of four subsidiary companies in Latvia, Estonia and Russia, as well representative offices in ten countries.

Grindeks specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups. A range of products covers a successful combination of original products and generics, with the original products Mildronate® and Ftorafur® and more than 100 forms of effective and safe generics included therein. Currently Grindeks produces 22 active pharmaceutical ingredients.

Products of the company are exported to 50 countries and its export comprises more than 95% of the total turnover. The main markets are: Russia and other CIS countries, the Baltic States, Germany and the Netherlands. In 2010 The Ministry of Economics of Republic of Latvia and Investment and Development Agency ofLatvia awarded Grindeksas the most export potential company of Latvia.
During the last years the company realized many considerable investment projects in purpose to increase production capacity and develop infrastructure and invested 32.7 million lats within five years.

JSC Grindeks shares are listed in the Official List of „Nasdaq OMX Riga”. Major shareholders of JSC Grindeks are Kirovs Lipmans – 33.29%, Anna Lipmane – 16.69%, „AB.LV Private Equity fund 2010” – 11.38%, „Skandinaviska Enskilda Banken” – 11.01%, „Swedbank” AS Clients Account – 9%.

Further information:

Laila Kļaviņa
Head of the Communications Department, JSC Grindeks
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505
[email protected]

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