Stock Price & Analysis

Revenue growth has been consistently strong, with 8.4% growth for the first 9 months of the year and revenues exceeding €4.8 billion at constant currency. Biopharma and key proteins were major contributors to this growth, with a notable performance in immunoglobulin and albumin franchises.

Revenue grew 9.1% in Q1, 6.5% in Q2, and 9.6% in Q3 at constant currency.

Biopharma performance was robust with immunoglobulin sales growing by 17.4% in Q3 and 15% year-to-date at constant currency.

Albumin franchise saw a revenue increase of close to 18% year-to-date due to higher demand in China and solid price increases in key markets.

The company achieved a 25.1% adjusted EBITDA margin in Q3, representing a significant improvement of 480 basis points compared to Q4 '22 margin. The strong revenue growth, operational improvement plan execution, and cost savings led to enhanced profitability.

Operational improvement plan drove revenue and margin expansion, contributing to the improved EBITDA margin.

Cost per liter reduced by 22% since July 2022 peak, leading to margin expansion.

Commitment to achieve higher end of EBITDA guidance with an anticipated margin increase to 28-29% in line with 2019 levels.

Grifols has made substantial progress on its deleveraging path, with the leverage ratio decreasing to 6.7x at the end of September 2023 from a peak of 9x last year. The company remains confident in reaching the 4x leverage target by the end of 2024 with a focus on executing a deleveraging transaction and strengthening the balance sheet.

Strong organic efforts and improved profitability contributed to deleveraging progress.

Liquidity exceeding €1 billion, including €454 million in cash, provides a strong financial position.

Focus on operational efficiencies, cost savings, and operating cash flow improvement to support deleveraging goals.