Last year, the group turnover of the pharmaceutical manufacturer AS “Grindeks” was 257.913 million euros, which is 11.1% more than a year earlier, but the group’s profit decreased by 41.2% – to 24.19 million euros, according to “Firmas.lv” information.
In 2022, the export of the “Grindeks” concern accounted for 94.6% of the turnover. Last year, the “Grindeks” concern exported its products to 100 countries for 244 million euros, which is 24.3 million euros or 11% more than in 2021, according to the management report of the company’s annual report.
It also mentions that the group’s strategy until 2025 includes expansion of operations in the countries of the European Union, USA, Japan, South Korea, Australia, Switzerland and Canada.
According to the management report, a significant increase in sales volume was achieved in many strategic countries last year, for example, in Greece sales volume increased 33 times, in Denmark – four times, and in Portugal and Norway – three times.
Medicines for the treatment of cardiovascular and central nervous system diseases accounted for the largest sales volume last year. Medicines from the hospital segment, offered by “Grindeks” subsidiary company “Kalceks”, also achieved a rapid increase in sales.
Using the decentralized authorization procedure, 18 “Grindeks” and “Kalceks” finished dosage forms have been submitted for registration of patent-free medicines in 2022. The company’s management report indicates that the production of active pharmaceutical substances is very important for the “Grindeks” concern, which is also one of the competitive advantages, as this segment increases independence from raw material manufacturers. Last year, the company successfully concluded the development of eight pharmaceutical substances.
In 2022, “Grindeks” paid special attention to the improvement of the production infrastructure and the installation of new production equipment, including the modernization of laboratories.
In order to continue the gradual and stable growth of the concern in the long term, the “Grindeks” innovation center will be built in several stages on Asotes Street in Riga, according to the management report. In the innovation center, complex production processes of active pharmaceutical substances will be ensured, modern technological equipment and automated and energy-efficient solutions will be installed.
The management report states that after Russia’s invasion of Ukraine, the countries of the world are supporting Ukraine on a large scale by targeting financial and economic sanctions against Russia and Belarus. The management of the concern has evaluated the existing customers, suppliers and business processes – the results of the group’s operation are currently stable, although at the time of signing the report there is uncertainty about further Russian activities, as well as the scope and impact of sanctions in the future.
Also, the management report states that the war in Ukraine affects the prices of all kinds of resources – raw materials, packaging materials, energy resources and transport costs. The concern also feels additional pressure from staff salary expectations and general inflation in Latvia. In order to compensate for the increase in production costs, the concern regularly revises the selling prices of medicines.
“Grindeks” has switched from rubles to euros for settlements with its subsidiary in Russia. Part of the production is traded on the condition of prepayment, which reduces currency risks. At the same time, the number of employees in Russia has been significantly reduced. Although only six products are exported to Russia, the concern is aware that changes and operational transition in pharmaceuticals cannot happen quickly, according to the management report.
The concern actively registers and promotes products in the European Union and other export markets and gradually abandons operations in high-risk countries, including Russia, the management report added.
The development strategy of the “Grindeks” group until 2025 determines several important development directions, including the expansion of the range of new active pharmaceutical substances and finished dosage forms, the expansion of operations in new markets – European Union countries, USA, Japan, South Korea, Australia, Switzerland and Canada.
The expansion of the production infrastructure in Latvia, Slovakia and Estonia is also planned, as well as the development of the subsidiary “Kalceks”. Digitization of business processes, abandoning the use of paper, as well as a sustainable and environmentally friendly approach are also planned.
In order to strengthen its position abroad and to ensure efficient product marketing and sales, the concern will create new subsidiaries.
The turnover of the “Grindeks” concern in 2021 was 232.048 million euros, which is 24.1% more than the year before, but the profit of the concern increased 2.2 times – up to 41.116 million euros.
The “Grindeks” concern consists of “Grindeks”, Latvia’s “Kalceks” and “House Management Projects”, Estonia’s “Tallinn Pharmaceutical Factory”, as well as Russia’s “Grindeks Rus” and Slovakia’s “HBM Pharma”. The company’s largest shareholder is “Liplat Holding”, which belongs to Kirov, Anna and Filip Lipman.
Source: LETA
2023-07-19 11:05:15
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