Shares of Grifols, the Spanish pharmaceutical company, surged after it raised its adjusted earnings guidance for the year. The increase in third-quarter net profit, driven by revenue and a higher margin, contributed to this positive outlook.
Net Profit and Revenue
Grifols recorded a net profit of €59.5 million ($62.9 million) for the third quarter, marking a 34% increase compared to the same period last year. This figure includes the acquisition of Biotest, which Grifols completed in April 2022. The company's strong performance in the third quarter offset the net losses of €56 million in the first half of the year, resulting in a positive net result for the first nine months.
In the third quarter, Grifols experienced a sales growth of 3.7%, amounting to €1.60 billion. This growth was primarily driven by the high demand for the immunoglobulin and albumin segments.
Grifols saw a significant increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during this period. EBITDA reached €373.3 million, up from €322.2 million in the prior-year period. Consequently, Grifols widened its EBITDA margin to 23.4% from 20.9%.
Revised Earnings Outlook
Based on its strong performance, Grifols now expects its adjusted EBITDA to reach €1.45 billion for the year. This is higher than its previous forecast range of between €1.40 billion and €1.45 billion.
Grifols's shares traded 11% higher at EUR11.70 as of 1258 GMT.