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Spanish biotech Grifols (NASDAQ:GRFS) stock fell ~8% May 9 on Spain's stock exchange BME, where it trades under the symbol GRF, giving up most of the gains following its Q1 results on May 6.
The company said in its May 6 release that its Q1 revenues grew by mid-to-high single digit, compared Q1 2021.
Grifols said Bioscience division lead the growth, supported by stronger plasma supply, robust underlying demand, price increases on key proteins, and product mix led by subcutaneous immunoglobulin.
Plasma collections reported 16% growth YTD vs. 2021 and 9% sequentially. The main drivers of growth were recent openings and recently-acquired plasma centers; larger plasma volumes from regular centers and operational efficiencies.
The company noted that the Diagnostic division was impacted by COVID-19 and Zika testing terminations, while its underlying business showed strength.
Grifols added that margins improved significantly on a sequential basis as reflected in a 20% EBITDA margin and a 27%-28% underlying EBITDA margin.
The company said it was committed to deleveraging, with the aim of decreasing its net financial debt to EBITDA ratio to <4x in 2023 and <3.5x in 2024.
Grifols (GRFS) said these targets are supported by structural cost savings; lower CAPEX over the next two years; no significant M&A; and no cash dividend payments until it gets to the leverage ratio of <4x.
The company noted that its liquidity position stands at more than €1B.
GFRS -4.78% to $11.96 on Nasdaq premarket May 9