Today, on 25 May, the financial statement of the JSC Grindeks on the first quarter of the year 2012 submitted to “Nasdaq OMX Riga” indicates that the Group’s turnover in the first quarter of 2012 amounted to 15.94 million lats, which is by 1.94 million lats or 13.9% more than in the first quarter of 2011. In its turn, the net profit of the Group, related to the shareholders of the holding company, amounted to 1.64 million lats in the first quarter of 2012, which is by 0.14 million lats or 9.3% more in comparison with the first three months of 2011. The gross profit margin of the Group was 54.1% in the first quarter of 2012, whereas, the net profit margin was 10.3%. The products of the Group, manufactured during the first quarter of 2012, were exported to 42 countries worldwide for the total amount of 15.12 million lats.

The sales volume of the final dosage forms of Grindeks was 14.49 million lats in the first quarter of 2012 and was increased by 2.4 million lats or 16.4% in comparison with the first quarter of the previous year. 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 12.3 million lats in the first quarter of 2012, which is by 1.9 million lats or 18.3% more than in the corresponding period of 2011. In its turn, the turnover of  the final dosage forms to the Baltic States and other European countries reached 2.19 million lats, which is by 0.14  million lats or 6.8% more than in the first quarter of 2011. The most demanded products of Grindeks in the first quarter of 2012 were the brand product Mildronate®, ointments – Capsicam®, Viprosal B®, central nervous system medications – Somnols®, Rispaxol® and the original anti-cancer medication Ftorafur®.

In the first quarter of 2012, the sales of the active pharmaceutical ingredients reached 1.45 million lats, which is by 0.1 million lats or 6.5% less than in the first quarter of 2011. Part of the active pharmaceutical ingredient clients has reviewed the production plan of 2012, moving the deliveries to the second half of the year. The main active pharmaceutical ingredient export markets for Grindeks are Germany, the Netherlands, Japan and the U.S. The most demanded active pharmaceutical ingredients of Grindeks are: zopiclone, oxytocin, ftorafur (tegafurum), UDCA (ursodeoxycholic acid) as well as the veterinary products – detomidine, medetomodine, atipamezole and xylazine.  Overall Grindeks produces 22 active pharmaceutical ingredients. Currently, there are 4 new active pharmaceutical ingredients under development.

Grindeks Chairman of the Board Juris Bundulis: “Performance of Grindeks in the first quarter is pleasing – we reached the planned turnover and fulfilled the plan. Given that in the center of Grindeks there is the patient; also in future the company will continue to implement its activities, taking into account the needs of the population and the situation in the field of healthcare. Grindeks currently is seriously focusing its attention on strengthening its position and development in the existing markets. Russia, as in the past, is the largest market country for our products, but our efforts providing citizens with efficient medication in our local Latvian market are no less essential. The first quarter results and the set tasks allow us to look at future and reaching business objectives with confidence, and now, all indicators suggest that the half-year will provide a steady growth dynamics. In the first quarter an essential work on product portfolio assessment was done that required an ability to mobilize ourselves, but now we have a clear vision of product development for the nearest 10 years that gives stability and additional advantages in competition.”­

Financial statement of Grindeks – first quarter of 2012 (100 KB)

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 the Investment and Development Agency of Latvia awarded Grindeks as 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 on 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” – 10.94%, “Swedbank” AS Clients Account – 8.28%.

Further information:

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