Grindeks : On “Grindeks” results in the first three months of 2017

Grindeks
Interim report (Q1 and Q3)

On 'Grindeks' results in the first three months of 2017

The turnover and net profit of 'Grindeks' to rise sharply in the first quarter of 2017

Today, on 29 May, the JSC 'Grindeks' submitted the non-audited consolidated financial statements for the first three months of 2017 to 'Nasdaq Riga'. Non-audited financial results indicate that the Group's turnover in the first quarter of 2017 was 31.9 million euro and has increased by 11.1 million euro or 53% in comparison to the first quarter of 2016. In the first quarter of 2017, the Group's net profit, attributable to shareholders of the parent company, was 4.51 million euro and has increased by 4.46 million euro or 89 times compared to the first quarter of 2016. Gross profit margin in the first quarter of 2017 was 60%, while net profit margin was 14%. In the first quarter of 2017, the Group's production was exported to 52 countries worldwide, a total of 29.7 million euro which is by 11 million euro or 59% more than in the first quarter of 2016.

Sales volume of the final dosage forms of 'Grindeks' in the first quarter of 2017 was 29.6 million euro and has increased by 10.6 million euro or 56% in comparison to the first quarter of 2016. In the first quarter of 2017, the sales amount in Russia, other CIS countries and Georgia reached 20.5 million euro, which is by 10.5 million euro or twice as much than in the first quarter of 2016. In comparison to the first quarter of 2016, in the first quarter of 2017 the biggest increase in sales volume has been reached in Russia (3.4 times), Tajikistan (2.6 times), Azerbaijan (2.4 times), Ukraine (52%) and Kazakhstan (42%).

The sales volume in the Baltic States and other countries in the first quarter of 2017 reached 9.1 million euro which is by 0.2 million euro or 2% more than in the first quarter of 2016. The sales volume in Kosovo compared with the first quarter of 2016, has increased by 3.5 times, in France by 2.7 times, in Hungary by 45%, Lithuania by 31% and Vietnam by 19%. In the first quarter of 2017, the sales volume in Latvia reached 1.6 million euro and has increased by 0.04 million euro or 2% in comparison with the first quarter of 2016.

In the first quarter of 2017, sales of the active pharmaceutical ingredients reached 1.9 million euro, which is by 0.4 million euro or 30% more than in the first quarter of 2016. During this reporting period 'Grindeks' mainly exported its active pharmaceutical ingredients to the EU countries, U.S., Australia and Japan. The most required active pharmaceutical ingredients of 'Grindeks' in the first quarter of 2017 were ftorafur, xylazine, oxytocin, zopiclone, pimobendan and detomidine.

The Chairman of the Board of JSC 'Grindeks' Juris Bundulis: 'The net profit and turnover reached in the first quarter of 2017 shows sharp and dynamic increase. The most remarkable increase was reached in Russia and other CIS countries which complies with the Group's overall action plan and the goal set to regain its position in these significant markets. The pharmaceutical industry is sustainable and multifaceted business of strong competition - we are pleased with our achievements, nevertheless, not for a moment we refrain from using advantages and knowledge of 'Grindeks'. '

About 'Grindeks'

'Grindeks' is an international, vertically integrated pharmaceutical company. Main fields of action are research, development, manufacturing and sales of original products, generics and active pharmaceutical ingredients. The Group of 'Grindeks' consists of five subsidiary companies in Latvia, Estonia, Russia and Slovakia as well as representative offices in 12 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®. Currently 'Grindeks' produces 23 active pharmaceutical ingredients.

Products of the company are exported to 71 countries and its export comprises 91% of the total turnover. The key markets include the EU countries, Russia and other CIS countries, the U.S., Canada, Japan and Vietnam.

To increase production capacity and develop infrastructure, the company has accomplished many significant investment projects, investing more than 90 million euros over the last 15 years.

Further information:
Laila Klavina
Head of the Communications Department, JSC 'Grindeks'
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505
laila.klavina@grindeks.lv