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Grifols sees core earnings rising in 2023 after 2022 net profit grew 10%
Global Banking & Finance Review®
Company
By Joan Faus
BARCELONA (Reuters) -Spanish pharmaceuticals company Grifols’ full-year net profit rose 10% to 208 million euros ($220.19 million) as blood plasma collection grew more than 25% and said it expects core earnings to grow significantly in 2023.
Grifols, which uses blood plasma to make medicines, reported on Tuesday total revenues of 6 billion euros, a 23% hike from 2021, with over half generated in the United States and Canada. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 27% year-on-year to 1.2 billion euros.
The reported net profit was below Refinitiv’s estimate of 280 million euros, revenue was slightly above, while its EBITDA was in line with estimates.
The Barcelona-based company, which was severely hit at the start of the pandemic due to plasma shortages, expects its EBITDA to rise to 1.7 billion euros in 2023 while its total revenue is forecast to rise 8%-10%, which would be a lower rate than in 2022.
Grifols said it achieved its 2022 targets.
“For 2023, we believe the company has a solid base upon which to build its future,” its two co-Chief Executives Victor Grifols and Raimon Grifols said in a statement, noting the company had to take “difficult but necessary measures”.
Grifols announced earlier this month it would lay off around 2,300 employees, or 8.5% of its global workforce, amid a strategy overhaul aimed at reaching annual savings of around 400 million euros.
A week after the announcement, it said Steven F. Mayer had resigned as its executive chairman due to health and other personal reasons, being replaced by Thomas Glanzmann, who had served as the board’s vice chairman since 2017.
($1 = 0.9446 euros)
(Reporting by Joan Faus; Editing by Sharon Singleton)
Net profit is the amount of money a company has left after all its expenses, taxes, and costs have been subtracted from its total revenue. It is a key indicator of a company's profitability.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance and profitability, excluding non-operating expenses.
Core earnings refer to the profits generated from a company's regular business operations, excluding any income from non-recurring events or investments. This metric provides a clearer picture of ongoing profitability.
Revenue is the total amount of money generated by a company's business activities, typically from the sale of goods and services, before any expenses are deducted.
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