Financial debt stood at 6.9x
Grifols closed the first half of 2023 with losses of 56 million euros due to restructuring costs amounting to 140 million euros associated with its transformation plan and increased its revenues by 14.8%, up to 3,225 million, it has reported. to the National Securities Market Commission (CNMV) this Thursday.
The company has explained that the net result was positive at 52 million if only the second quarter of the year is taken into account and that the adjusted net profit was 114 million in the semester.
The executive president and CEO of the company, Thomas Glanzmann, has defined the results as good and has said that they have exceeded forecasts, which, according to him, shows that the transformation plan "is paying off, driving profitability and a further margin expansion.
The gross margin of the company was 37.6% of revenues -36.4% if Biotest is included-, driven by the positive evolution of the gross margin in the second quarter of the year, which stood at 38, 5% -37.2% including the German company-- compared to 36.7% registered in the first quarter of 2023.
CPL IMPROVEMENT
Grifols has indicated that "it has begun to recognize in its income statement the benefits derived" from the decrease in the cost per liter (CPL) of plasma, which began in the third quarter of 2022 and which has a nine-month offset in inventory accounting. .
For this reason, it estimates that the improvement "will lead to an expansion of the sequential margin in the second half of 2023 and in fiscal year 2024".
Adjusted Ebitda up to June was 655 million euros -659 with Biotest--, which represents a margin of 22.2%, which "is supported by the growth of all the business units", the cost savings derived of the improvement plan and operating leverage.
This data excludes 135 million euros of non-recurring expenses including, mainly, the 140 million euros of restructuring costs recognized in the first quarter of the year, and reported Ebitda was 520 million.
Grifols has reiterated its "commitment to reducing its indebtedness", which in the first half stood at 6.9x, and has maintained its goal of placing it at 4x by the end of 2024.
Excluding the impact of IFRS 16, Grifols' net financial debt stood at 9,421.5 million euros, and as of June 30 the liquidity position was 1,162 million and the cash position was 523 million.
BUSINESS
Biopharma revenues increased by 14.9%, up to 2,698 million euros, and, excluding Biotest, they were 2,441 million, 8.4% more.
"The main drivers of growth have been strong underlying demand for the main plasma proteins, a solid supply of plasma and a favorable combination of prices and product mix," the company explained.
Grifols highlighted the growth in immunoglobulin sales, which grew by 13.6%, and explained that "it has continued to strengthen its immunoglobulin franchise with a strategy focused on the fastest-growing segment of immunodeficiencies."
For its part, Diagnosit closed the period with revenues of 341 million euros, 3% more, and the company has highlighted the evolution of blood typing solutions (7%).
Bio Supplies, for its part, had a turnover of 83 million euros, 53.9% more, thanks to the integration of Access Biologicals.
PLASMA SUPPLY
Grifols has explained that the plasma supply increased by 12% in the first half and that the CPL fell by 20% compared to the maximum of July 2022.
These figures are due to the decrease in compensation to donors, which stabilized in the second quarter, and the optimization of the network of plasma centers; and the forecasts go through a reduction of other costs related to plasma, the rationalization of operations and general expenses, the adjustment of processes and the digitalization that "continue favoring" the improvement of the CPL.
FORECASTS
The company has improved its forecasts for the end of 2023, which places revenue growth from 10% to 12%, and revenue growth in Biopharma, including Biotest, from 12% to 14%.
The adjusted margin, without taking Biotest into account, would be 24-25% in the second half and 24% for the year as a whole.
Adjusted Ebitda --including Biotest-- should be between 1,400 and 1,450 million euros, and annualized savings --excluding the German company--, close to 1,750 million euros, 28% or 29%.
