Baltic Export, Latvia, Markets and Companies, Medicine

In the first quarter of 2016, the Group’s net profit, attributable to shareholders of the parent company, was EUR 0.05 million euro and decreased by 1.4 million euro or 96.5% compared to the first three months of 2015. Gross profit margin in the first quarter of 2016 was 44.6%, while net profit margin was 0.2%.

In the first three months of 2016, the Group’s products was exported to 53 countries worldwide for a total of EUR 18.8 million, which is by EUR 1.8 million or 8.6% less than in the first quarter of 2015.

Sales of the final dosage forms in the first quarter of 2016 amounted to EUR 19.2 million, down EUR 0.04 million euro or 0.2% in comparison to the first three months of 2015. In the first quarter of 2016, sales in Russia, other CIS countries and Georgia added up to EUR 10 million, down by EUR 2.2 million or 18.3% from the first quarter of 2015. The biggest increase in sales year-on-year has been achieved in Ukraine (8%), Georgia (4%) and Moldova (3%).

Due to the business diversification strategy and the development of company’s activities in the new markets, sales in the Baltic states and other countries reached EUR 9.2 million in the first quarter of 2016, which is by EUR 2.2 million euro or 31.8% more than in the first quarter of 2015. Sales in Canada has increased 3.6 times year-on-year, in Poland 2.5 times, and in Hungary 88%. In the first quarter of 2016, sales in Latvia reached EUR 1.7 million, rising EUR 0.2 million or 11.5% in comparison with the first three months of 2015.

In the first quarter of 2016, sales of the active pharmaceutical ingredients were EUR 1.5 million, which is by EUR 1.6 million or 52.1% less than in the same period in 2015. The key markets of Grindex active pharmaceutical ingredients are the EU countries, U.S., Australia and Japan.

”By using our knowledge and experience, company’s orientation to new markets is progressing well. However, considering the specificities of pharmaceutical business, reorientation from one region to another requires patience, time and recourses. In comparison with the previous years, this year the amount of registered drugs in the new markets will significantly grow, leading to increase in sales in both the near and distant future. Pleasantly, in the first quarter our operations in Russia and Ukraine, quite essential markets for Grindex, have marked a positive trend, stabilizing the overall situation and motivating us to continue what has been started,” said Juris Bundulis, the board chairman of Grindex.

Last year Grindex group generated EUR 82.7 million in turnover, down 6.6% year-on-year, and the group’s net profit, attributable to shareholders of the parent company, was EUR 1 million as opposed to a net loss of EUR 2.5 million in 2014.

Grindex 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.

Grindex group comprises the parent company, Grindex, and five subsidiaries in Latvia, Estonia, Russia and Slovakia as well as representative offices in 13 countries.

Grindex exports its products to 70 countries, and export comprises 90% of the total turnover. The key markets include the EU countries, Russia and other CIS countries, the U.S., Canada, Japan and Vietnam.

Grindex is quoted on the Main List of Nasdaq Riga stock exchange.