"Grindeks" Group has reached record high turnover and profit in the first half of 2021

RIGA, Latvia, Aug. 16, 2021 /PRNewswire/ -- The consolidated, provisional financial data of "Grindeks" Group shows that in the first half of 2021 the Group has reached record high turnover and profit. In this period the turnover of "Grindeks" Group reached 115.6 million euros, which is 21.1 million euros or 22% more than in the first half of 2020. The profit of the Group in the first half of 2021 amounted to 19.8 million euros which is 7 million euros or 55% more than in the first half of 2020.

"Grindeks" Group's record high profit and turnover has been achieved due to a significant increase in demand for cardiovascular, central nervous system and hospital segment medicines produced by the Group, as well as the hospital segment offered by JSC "Grindeks" subsidiary company JSC "Kalceks". During the first half of 2021, the Group exported its production to 91 countries for a total amount of 109.6 million euros.

Dr. chem. Juris Hmeļņickis, Chairman of the Board of JSC "Grindeks": "We have developed rapidly in the global context during this half-year as demand for our products has increased significantly. We have achieved record high turnover and profit thanks to targeted team work and successful cooperation with patients and partners. In this way, we have further strengthened our pharmaceutical manufacturer leadership in the Baltic States. Over the last half-year, we continued to improve job efficiency, and we achieved growth without increasing costs and the number of employees. I am absolutely convinced that we will achieve high financial results in the coming months and years, as well while bringing the word "Grindeks" more and more widely into the world. This is a good proof of the fact that a thorough and high-quality work has been done for future development."

The Group's sales of final dosage forms in the first half of 2021 totalled 109.5 million euros and compared to the first half of 2020 increased by 21.9 million euros or 25%.

In the first half of 2021, sales of final dosage form products in the European Union and other countries amounted to 59.6 million euros, which is 14.8 million euros or 33% more than in the first half of 2020. Sales in Portugal increased 66 times in the first half of 2021 compared to the first half of 2020, in the Netherlands 12 times, in Austria 5 times, in Poland 4 times, in Great Britain by 79%, in Hungary by 68%, in Slovakia by 21%, and in Czech Republic by 15%.

Sales in Russia, other CIS countries and Georgia amounted to 49.9 million euros in the first half of 2021, which is 7.2 million million or 17% more than in the first half of 2020. Compared to the first half of 2020, during the first half of 2021 sales in Kyrgyzstan increased by 42%, in Moldova by 39%, in Azerbaijan and Georgia by 35% and in Belarus by 33%.

"Grindeks" product portfolio includes modern medicines for treatment of cardiovascular, central nervous systems, oncological diseases and diabetes, while JSC "Kalceks" offers medicines for the hospital segment. There are currently 63 new JSC "Grindeks" and 42 new JSC "Kalceks" medicines in development.

The production of active pharmaceutical ingredients is also very important for the "Grindeks" Group, which is also one of the Group's significant advantages in the pharmaceutical sector. The company currently produces 25 active pharmaceutical ingredients. This segment increases independence from raw material producers, so the company is developing 26 new active pharmaceuticals. The availability of active pharmaceuticals means the possibility of more efficient production of finished final dosage forms within the group. The largest export markets of  "Grindeks" active pharmaceutical ingredients are European Union countries, the U.S., Japan and Canada.

JSC "Kalceks" accomplishments are very important for the overall development and growth of the group. In the first six months of 2021, JSC "Kalceks" sales grew rapidly, increasing both the number of export countries and expanding its product portfolio. In the first half of 2021, products from JSC "Kalceks" were sold for 36.3 million euros, which is 11.7 million euros or 48% more than in the first half of 2020. JSC "Kalceks" products were exported to 67 countries in the first half of 2021, and the main ones were Mexico, the Netherlands, Great Britain, Poland and Portugal.

Kirovs Lipmans, Chairman of the Council of JSC "Grindeks" has high praise about the results of the first half of 2021:"I am gratified with what we have achieved in the first six months of 2021. Manufacturing is my passion, I always look forward and see development opportunities to provide patients with the necessary medicine. Thinking about the development of the group, smart investments that improve infrastructure, create an even more modern working environment and increase the production capacity of the company always must be made. Such investments are necessary for us to be successful in global context and for our development pace to be higher than the average in the pharmaceutical sector."

In order not to stop at the results already achieved and to continue the gradual and sustainable growth of the Group in the long term, "Grindeks" in the first half of the year paid particular attention to the improvement of manufacturing infrastructure, which also includes the purchase of new manufacturing equipment, as important is building a new manufacturing laboratory for final dosage forms.

The contract for the new plant project has been signed during the first half-year and the area development and improvement work has been done. The new plant will be built in Latvia, Riga, Asotes Street 12, in several phases and will include complex manufacturing processes for active pharmaceutical ingredients and modern technological equipment. It will be the largest pharmaceutical plant in the Baltic region with automated and energy-efficient solutions.

About "Grindeks" Group

"Grindeks" is an international pharmaceutical Group, and its main activities are research, development, production and sale of original products, generic medicines and active pharmaceutical ingredients.

The "Grindeks" Group consists of JSC "Grindeks" and its companies: JSC "Kalceks" in Latvia, JSC "Tallinn Pharmaceutical Plant" in Estonia, "HBM Pharma" s.r.o. in Slovakia, LLC "Grindeks Rus" in Russia and LLC "Namu Apsaimniekosanas projekti" in Latvia. Representative offices have been opened in 11 countries.

The main therapeutic groups of "Grindeks" are cardiovascular, central nervous system, anti-cancer and diabetes medicines. "Kalceks" specializes in medicines for the hospital segment. The product range consists of the original products Mildronate® (meldonium) and Ftorafur® (tegafur), generics as well as active pharmaceutical ingredients.

In 2020 the Group exported its products to 93 countries. Major "Grindeks" markets are the European Union countries, Russia and other CIS countries, Israel, Canada and the USA.

Video about the results: https://youtu.be/zxiHpl642aU
Infographic about the results: https://infogram.com/eng-1h7k230dn1leg2x?live
Photos: https://grindeks.eu/company/about-grindeks/photos/

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