OREANDA-NEWS. Today, on 29 May, the JSC “Grindeks” submitted the non-audited consolidated financial statements for the first quarter of 2015 to “NASDAQ Riga”. Non-audited financial results indicate that the Group’s turnover amounted to 22.4 million euros and has increased by 3.6 million euros or 19.1% in comparison to the first quarter of 2014. While the Group’s net profit, attributable to shareholders of the parent company, was 1.4 million euros in the first quarter of 2015 and has increased by 0.9 million euros or 183% in comparison to the first quarter of 2014. Gross profit margin in the first quarter of 2015 was 52.1% while net profit margin was 6.5%. In the first quarter of 2015 the Group’s production was exported to 44 countries worldwide, a total of 20.5 million euros which is 2.7 million euros or 15.4% more than in the first quarter of 2014.

Statement of comprehensive income for the first quarter of 2015

? 2015 2014
? January-March January-March
? EUR EUR
? ? ?
Net sales 22,404,491 18,806,598
Cost of goods sold (10,733,142) (7,197,076)
Gross profit 11,671,349 11,609,522
? ? ?
Selling expenses (3,739,190) (6,591,867)
Administrative expenses (3,103,178) (2,695,819)
Other operating income 670,326 310,622
Other operating expenses (3,449,507) (1,984,593)
Interest income and similar income 30,120 27,564
Interest expenses and similar expenses (95,635) (62,965)
Real estate tax (26,550) (20,085)
Profit /loss before taxation 1,957,735 592,379
Corporate income tax (506,705) (79,406)
PROFIT/LOSS FOR THE PERIOD 1,451,030 512,973
Other comprehensive income /loss ? ?
Foreign currency revaluation (71,668) 19,472
Total other comprehensive income /loss (71,668) 19,472
Total comprehensive income /loss 1,379,362 532,445
? ? ?
Attributable to: ? ?
Equity holders of the parent 1,447,003 511,253
Non-controlling interest 4,027 1,720
TOTAL 1,451,030 512,973
? ? ?
Comprehensive (loss)/ income attributable to: ? ?
Equity holders of the Parent entity 1,375,335 530,725
Non-controlling interest 4,027 1,720
TOTAL 1,379,362 532,445
? ? ?
Earnings per share attributable to the equity holders of the Parent entity

(EUR per share)

 ? ?
? Earnings per share 0.15 0.06

Sales volume of the final dosage forms of “Grindeks” in the first quarter of 2015 was 19.2 million euros and has increased by 3.1 million euros or 19.1% in comparison to the first quarter of 2014. The sales amount in Russia, other CIS countries and Georgia reached 12.3 million euros in the first quarter of 2015, which is by 1.1 million euros or 8% less than in the first quarter of 2014. Thanks to successful business diversification and the development of company’s activities in new markets, turnover of the final dosage forms in the Baltic States and other European countries amounted to 7 million euros, which is by 4.1 million euros or 148% more than in the first quarter of 2014. The sales volume in Latvia in the first quarter of this year accounted to 1.5 million euros and has increased by 0.6 million euros or 70% comparing with the first quarter of last year.

In the first quarter of 2015, sales of the active pharmaceutical ingredients reached 3.1 million euros, which is by 0.5 million euros or 17.8% more than in the first quarter of 2014. Main markets of “Grindeks” active pharmaceutical ingredients are the EU countries, USA and Japan. The most required active pharmaceutical ingredients of “Grindeks” in the first quarter of 2015 were Oxytocin, 6-thioguanine, Pimobendan and Ursodeoxycholic acid.

The Chairman of the Board Mr. Juris Bundulis: “By using company’s accumulated knowledge and experience in 60 countries worldwide, “Grindeks” successfully supplements its product portfolio and activities in new markets. This year’s first quarterly results affirm that currently implemented business diversification and restructuring are bringing positive results. The further company’s development will depend on two relevant factors – fast entrance into new markets and recovery of the economic situation in the CIS countries”.

 About “Grindeks”

“Grindeks” is vertically integrated pharmaceutical company. Main fields of action are research, development, manufacturing and sale 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 13 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 generics included therein. Currently “Grindeks” produces 25 active pharmaceutical ingredients.

Products of the company are exported to 60 countries and its export comprises 94% of the total turnover. The main markets are: Russia and other CIS countries, the Baltic States, the Netherlands, Germany, Canada, the U.S., France, Ireland and Japan.

To increase production capacity and develop infrastructure, since 2002 the company has accomplished many significant investment projects, investing more than 70 million euros over the years.

JSC “Grindeks” shares are listed on the Official List of “NASDAQ Riga”. Major shareholders of JSC “Grindeks” are Kirovs Lipmans – 33.29%, “AB.LV Private Equity fund 2010” – 22.66%, Anna Lipmane – 11.38%, “Swedbank” AS Clients Account (nominee account) – 9.92%.