Today, on 26 April, JSC “Grindeks” has submitted the audited consolidated financial statements for 2011 to “NASDAQ OMX Riga”. Audited financial results show that the turnover of the Group of “Grindeks” amounted to 69.6 million lats in 2011, which is by 4.5 million lats or 6.9% more than in 2010. In its turn, net profit related to the shareholders of the holding company amounted to 6.7 million lats in 2011, which, in comparison with 2010, has decreased by 0.4 million lats or 5.6%. In 2011, gross profit margin of the Group was 58.9%, whereas, net profit margin comprised 9.6%. Products of the Group, manufactured during the Year 2011, were exported to 50 countries worldwide for the total amount of 65.8 million lats.

In 2011, ROE was 10.8%; ROA was 8.9%; ROS was 11.2%; liquidity was 2.98.

Sales volume of the final dosage forms of “Grindeks” was 60.4 million lats in 2011 and has increased by 2.7 million lats or 4.7% more in comparison with 2010. The main markets of the final dosage forms are Russia, other CIS countries, Georgia and the Baltic States. The sales amount in Russia, other CIS countries and Georgia reached 51.8 million lats in 2011, which is by 1.6 million lats or 3.2% more than in 2010. In its turn, turnover of the final dosage forms to the Baltic States and other European countries reached 8.6 million lats, which is by 1.1 million lats or 14.7% more than in 2010. The most demanded products of “Grindeks” are the brand product Mildronate®, ointments – Capsicam®, Viprosal B®, Sulfargin®, central nervous system medications – Somnols®, Rispaxol® and the original anti-cancer medication Ftorafur®.

In 2011, sales of the active pharmaceutical ingredients reached 9.2 million lats, which is by 1.8 million lats or 24.3% more than in 2010. The main active pharmaceutical ingredient export markets for “Grindeks” are Germany, the Netherlands, Japan and the U.S. The most demanded pharmaceutical ingredients of “Grindeks” are: zopiclone, oxitocine, ftorafur (tegafur), UDCA (ursodeoxycholic acid) as well as the veterinary products – detomidine, medetomidine, atipamezol and xilazine. Overall “Grindeks” produces 22 active pharmaceutical ingredients. In 2011, the company introduced 7 new active pharmaceutical ingredients. In 2011, the zopiclone of “Grindeks” share of the world market was 25%, while the oxytocin’s share of the world market was 30%. “Grindeks” veterinary substances’ market share in the EU amounted to 32% of the European Union market.

To secure and increase the understanding of investors, cooperation partners, clients and society about the company, its activities and governance, “Grindeks” audited consolidated financial statement of 2011 is submitted to “NASDAQ OMX Riga” together with Corporate Governance Report of the year of 2011.

About “Grindeks”

“Grindeks” is the leading pharmaceutical company in the Baltic States. Its main fields of action are: research, development, manufacturing and sale of original products, generics and active pharmaceutical ingredients. The Group of “Grindeks” consists of four subsidiary companies in Latvia, Estonia and Russia, as well representative offices in ten 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 effective and safe generics included therein. Currently “Grindeks” produces 22 active pharmaceutical ingredients.

Products of the company are exported to 50 countries and its export comprises more than 95% of the total turnover. The main markets are: Russia and other CIS countries, the Baltic States, Germany and the Netherlands. In 2010 the Ministry of Economics of Republic of Latvia and the Investment and Development Agency of Latvia awarded “Grindeks” as the most export potential company of Latvia. During the last years the company realized many considerable investment projects in purpose to increase production capacity and develop infrastructure and invested 32.7 million lats within five years.

JSC “Grindeks” shares are listed on the Official List of “NASDAQ OMX Riga”. Major shareholders of JSC “Grindeks” are Kirovs Lipmans – 33.29%, Anna Lipmane – 16.69%, “AB.LV Private Equity fund 2010” – 11.38%, “Skandinaviska Enskilda Banken” – 10.94%, “Swedbank” AS Clients Account – 8.28%.

Further information:

Laila Kļaviņa
Head of the Communications Department, JSC “Grindeks”
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505
laila.klavina@grindeks.lv