Riga, Latvia, 2016-02-29 13:15 CET (GLOBE NEWSWIRE) --  

Correction of technical mistake on page 15 of the attached file. Corrected position: “Profit/loss before taxation” from EUR -1 702 211 to EUR 1 511 926 without corrections in other financial indicators.

Today, on 26 February, the JSC “Grindeks” submitted the non-audited consolidated financial statements of 2015 to “NASDAQ Riga”. Non-audited financial results indicate that the Group’s turnover in 2015 was 82.9 million euros and has decreased by 5.6 million euros or 6.3% in comparison to 2014. In 2015, the Group’s net profit, attributable to shareholders of the parent company, was 1.0 million euro in comparison to a net loss of 2.5 million euros in 2014. Gross profit margin in 2015 was 44.4% while net profit margin was 1.2%. In 2015, the Group’s production was exported to 70 countries worldwide, a total of 74.4 million euros which is 8.5 million euros or 10.2% less than in 2015.

Statement of comprehensive income in the twelve months of 2015


  2015 2014
Net sales 82,895,960 88,487,515
Cost of goods sold (46,127,150) (40,461,842)
Gross profit 36,768,810 48,025,673
Selling expenses (18,896,641) (23,307,179)
Administrative expenses (11,708,296) (12,084,293)
Other operating income 8,527,752 2,961,669
Other operating expenses (12,782,840) (17,255,921)
Interest income and similar income 157,123 164,655
Interest expense and similar expense (433,090) (299,901)
Real estate tax (120,892) (105,899)
Profit /loss before taxation 1,511,926 (1,901,196)
Corporate income tax (520,817) (634,998)
Net profit/ loss for the year 991,108 (2,536,194)
Other comprehensive income  (12,682) (8,554)
Foreign currency revaluation (12,682) (8,554)
Other comprehensive income  total 978,427 (2,544,748)
Attributable to:    
Equity holders of the parent 980,452 (2,540,171)
Non-controlling interest 10,656 3,977
TOTAL 991,108 (2,536,194)
Comprehensive income  attributable of:    
Equity holders of the parent 967,771 (2,548,725)
Non-controlling interest 10,656 3,977
Total 978,427 (2,544,748)
Earnings /loss per share attributable equity holders of the parent
      (EUR  per share)
-         Earnings/loss per share 0.10 (0.27)



Sales volume of the final dosage forms of “Grindeks” in 2015 was 74.9 million euros and has decreased by 4.1 million euros or 5.2% in comparison to 2014. In 2015, the sales amount in Russia, other CIS countries and Georgia reached 41.5 million euros, which is by 19.0 million euros or 31.4% less than in 2014. In comparison to the previous year the biggest increase in sales volumes has been reached in Georgia (25%) and Turkmenistan (37%).

Thanks to the business diversification strategy and the development of Company’s activities in new markets, the sales volume in the Baltic States and other countries reached 33.4 million euros which is by 14.9 million euros or 1.8 times more than in 2014. The sales volume in the Netherlands comparing with 2014 has increased by 14.1 times, in Norway – 3.3 times, while in Vietnam – 2.2 times and in Poland 1.8 times. In 2015, “Grindeks” started the export of the final dosage forms to France where the sales volume reached 0.5 million euros, and Canada where the sales reached 0.3 million euros. In 2015, the sales volume in Latvia reached 6.6 million euros and has increased by 1.9 million euros or 41.6% in comparison with the previous year.

In 2015, “Grindeks” complemented its range of products and introduced the final dosage form (capsule) of Ursodeoxycholic acid (UDCA) and started its export to Russia and Georgia. Thereby “Grindeks” widened its offer in the gastrointestinal tract and metabolism drug therapeutic group. “Grindeks” has also widened its range of food supplements and introduced two new products – the latest generation lactic acid bacteria and bifidobacteria complex Lactobex® Strong and Herbastress® night. Both products are distributed in the Baltics.

In 2015, sales of the active pharmaceutical ingredients reached 7.2 million euros, which is by 1.8 million euros or 20.3% less than in 2014. The main markets of “Grindeks” active pharmaceutical ingredients are the EU countries, U.S., Canada and Japan. The most required active pharmaceutical ingredients of “Grindeks” in 2015 were oxytocin, zopiclone, ftorafur (tegafur), detomidine and xylazine.

The Chairman of the Board of JSC “Grindeks” Juris Bundulis: “The global economic and political situation is still uncertain and often hard to predict. Today, to compete in the global pharmaceutical market we have to use our own strengths, reorient the business, examine the situation and be adoptable more than ever before. In 2015, to lower the risks in our current markets we decidedly used our potential in other ones.  “Grindeks” already exports its products to 70 countries – in 2016, we will strategically focus on the growth of our activities in the European Union and Southeast Asia, where we hope to increase the sales volume by 30%. New products are under development and a number of registration procedures in many countries over the world have been started, which is going to strengthen “Grindeks” positions.”

About “Grindeks”

“Grindeks” 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. 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®. Currently “Grindeks” produces 25 active pharmaceutical ingredients.

Products of the company are exported to 70 countries and its 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.

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.

         Further information:
         Laila Klavina
         Head of the Communications Department, JSC “Grindeks”
         Phones: (+371) 67083370, (+371) 29256012
         Fax: (+371) 67083505