Grifols closed the third quarter of the year with figures that invite optimism. The company earned 88 million euros until September, a figure that represents an increase of 102 million euros compared to the same period of the previous year thanks to the boost of 52 million euros obtained in the third quarter of 2024. On the other hand, the debt of the group, the pharmaceutical company’s main Achilles heel, was reduced by 100 million in the last three months, going from the 9,396 million reported in July to the current 9,208 million euros.
For its part, the EBITDA reported until September stands at 1,518 million euros. This figure causes the leverage ratio to rise to 6.1 times EBITDA. The pharmaceutical company corrected this indicator at the beginning of the year and assured that it would close the year at 4.5X. However, the company has frozen the distribution of dividends until it manages to reduce this ratio to four times the EBITDA.
“The company remains focused on strengthening its financial profile as reflected, in the third quarter, by the allocation of the entire €1.6 billion of proceeds from the sale of SRAAS assets to reduce the issuance of senior secured bonds maturing in 2025 and the LTB loans maturing in 2027,” Grifols explains.
The evolution of Grifols’ business is progressing positively since the slump it entered after the outbreak of the pandemic. Both the plasma medicine business and the reduction in the price per liter of this raw material have caused turnover to increase compared to the previous year. Specifically, Biopharma’s revenues grew by 9.9%, to 4,455 million euros. In addition, sales of the Diagnostics division increased by 1.7% to 479 million euros in the first nine months of the year.
“I am proud of the good results obtained in the third quarter. Thanks to the entire Grifols team we have managed to drive growth, maintain disciplined cost control and advance our continuous improvement initiatives. With this work underway and our solid fundamentals , we continue to make progress in achieving our objectives for 2024”, says Nacho Abia, CEO of the group.
Finally, the group has also reported year-to-date free cash flow. As explained in its accounts, the figure increased to reach 127 million euros in the third quarter and reflects a sequential improvement in relation to the deficit of 253 million euros in the first quarter and a positive 57 million euros in the second quarter. The improvement in working capital management has contributed to the improvement in free cash flow in the third quarter.
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