JSC Grindeks informs that submission of audited consolidated financial statements of 2017 of JSC Grindeks was delayed due to the fact despite there were written reminders sent to the auditor, only today, on 7 May, properly completed and signed independent auditors report in Latvian and English was submitted to JSC Grindeks by its auditor “Deloitte Audits Latvia”.
Today, on 7 May, the JSC Grindeks submitted the audited consolidated financial statements of 2017 to “Nasdaq Riga”. Audited financial results indicate that in 2017 turnover of the Group was 132.4 million euro and has increased by 27 million euro or 26% in comparison to 2016. In 2017, the Group’s net profit, attributable to shareholders of the parent company, was 10.0 million euro and has increased by 5.4 million euro or 2.2 times. Gross profit margin in 2017 was 58%, while net profit margin was 8%. In 2017, the Group’s production was exported to 77 countries worldwide, a total of 122.4 million euro which is by 27.2 million euro or 28% more than in 2016.
At the end of the reporting period the amount of accounts receivable (debtors) was 55.6 million euro, which is by 15.2 million euro more than accounts payable (liabilities) that were 40.4 million euro. The amount of current assets at the end of reporting period was 83.1 million euro, which is by 57.8 million euro more than amount of current liabilities which was 25.3 million euro.
The Chairman of the Board of JSC Grindeks Juris Bundulis: “The dynamic increase approves Grindeks is now on a wisely chosen and stable course of strategic development, based on strengthening existing positions in the current markets as well as successful expansion into new regions. In 2018, additionally to our traditional markets we are motivated to proceed with business development in the EU countries, where the turnover of nearly 20 million euro in 2017 was already achieved, and as before, we will continue entering Southeast Asia markets.”
Sales volume of the final dosage forms of Grindeks in 2017 was 124.2 million euro and has increased by 27.2 million euro or 28% in comparison to 2016. In 2017, the sales amount in Russia, the other CIS countries and Georgia reached 81.1 million euro, which is by 23 million euro or 39% more than in 2016. In comparison to 2016, the biggest increase in sales volume has been reached in Tajikistan (69%), Russia (53%), Ukraine (40%), Armenia (35%), Azerbaijan (34%) and Kirgizstan (34%).
In 2017, the sales volume in the Baltic States and other countries reached 43.1 million euro which is by 4.2 million euro or 11% more than in 2016. In 2017, the sales volume compared to 2016 in Slovakia has increased by 4.3 times, Australia by 3.6 times, Albania by 93%, France by 90%, Spain by 63%, Sweden by 60%. In 2017, the sales volume in Latvia reached 7.4 million euro and has increased by 0.1 million euro or 2% in comparison to 2016. Increase in sales has been reached also in the other Baltic States – in Lithuania by 13% and Estonia by 6%.
In 2017, sales of the active pharmaceutical ingredients reached 6.9 million euro, which is by 0.6 million euro or 9% more than in 2016. During the reporting period the majority of Grindeks active pharmaceutical ingredients were exported to the EU countries, Canada, Australia and Japan. The most required active pharmaceutical ingredients of Grindeks in 2017 were zopiclone, oxytocin, pimobendan, medetomidin, ftorafur (tegafur) and xylazine.
The Chairman of the Council of JSC Grindeks Kirovs Lipmans: “From the perspective of company’s shareholders Grindeks showed a great performance in 2017. Especially, a notable growth of Group’s value, improvements in overall cash flow and remarkably reduced accounts receivable have to be highlighted. We are expecting stable growth to proceed in 2018 with at least 10% rise in turnover, while to meet the growing demand we will invest at least 7 million euro to raise production capacity in Group’s manufacturing facilities in Latvia, Estonia and Slovakia. In the name of the company’s council and shareholders I am thankful to Grindeks team for last year’s performance.”
The audited consolidated financial statements of 2017 include changes in submitted JSC Grindeks audited consolidated financial statements of 2016 on the base of the auditor recommendations (see Notes No. 24).