Grifols results for nine months 2024

Grifols A received for nine months of the year net profit was 88 million euros, compared with the 14 it lost between January and September. since last year. And much of this improvement is due to more than an increase in the company’s profit in the third quarter of the year, when its after-tax result reached 52 million euros.

But the truth is that the Catalan blood products company found that without the impact of one-off financial and tax costs associated with debt reduction after the sale of 20% of Shanghai Raas. Excluding extraordinary expenses, net profit amounted to 264 million. euros for nine months of the year.

Free cash flow increased to €127 million in the third quarter. and reflects a sequential improvement from a deficit of €253 million in the first quarter and a positive €57 million in the second quarter. Improved working capital management contributed to improved free cash flow in the third quarter.

As of September 30, 2024 Grifols’ net financial debt under the terms of the loan agreement amounted to EUR 8.128 million.. This amount does not include the impact of financial liabilities of €1,080 million related to the leasing of (mainly) plasma centers (IFRS 16). Net debt on the balance sheet amounted to 9.208 million euros. The liquid position is EUR 704 million.

Deleveraging continues to be an absolute priority for Grifols. The leverage ratio was 5.1x in the third quarter.which represents an improvement from 5.5x in the second quarter and 6.8x in the first quarter.

The company remains focused on strengthening its financial profile as reflected in in the third quarter, allocating the entire €1.6 billion proceeds from the sale of SRAAS assets to reduce the issuance of senior secured notes due 2025 and long-term loans due 2027.

In the third quarter of 2024, total revenue reached €1.793 million. with growth of +12.4% year-on-year (+12.2% stated). Revenue for the first nine months of the year rose +9.1% (reported +8.6%) to €5.237 million, driven by the strength of Biopharma.

Adjusted EBITDA in the third quarter was €462 million. with a margin of 25.8% and growth of +26.7% cc (+24.6% stated) compared to Q3 2023. For the first nine months of the year, adjusted EBITDA was €1.253 million, up +25.0% cc (+23.1% reported).
These results reflect an improvement in product mix; improvement in gross margins following the lower cost per liter of plasma recorded in recent quarters; and strong commercial execution and operating leverage.

EBITDA recorded in the third quarter reached 425 million euros and 1.149 million euros for the first nine months of 2024.which represents a margin of 23.7% and 21.9% respectively. In the third quarter, reported EBITDA included almost €30 million of one-time transaction and restructuring costs, as well as €5 million from the Biotest Next Level (BNL) project.