February 28, 2022

Grifols demonstrates resilient performance despite a challenging backdrop while recovery in plasma collection gains momentum

Full year sales of EUR 4,933 million, adjusted EBITDA1 of EUR 1,014 million, with operating cash flow of EUR 597 million

  • COVID-19 was the primary driver of reduced plasma volumes resulting in an extraordinary financial impact
  • Robust underlying demand across key proteins, coupled with mid-single-digit price increases, solid performance of key proteins and contribution from new products, partially offset plasma supply constraints
  • Bioscience revenues declined by 5.9% cc due to plasma supply restrictions, while other divisions increased: Diagnostic (3.5% cc), Hospital (20.3% cc) and Bio Supplies (4.8% cc)
  • Extensive measures taken to offset the impact of the pandemic were effective: COVID-19 tests sales, contribution from new products, price increases and operational savings plan
  • Margins impacted by lower plasma volumes and higher cost per liter, as well as costs derived from the integration of newly acquired companies and inflationary pressures, resulting in an adjusted EBITDA margin of 20.6%
  • Grifols’ fundamentals remain strong, reflected on an underlying EBITDA of EUR 1,570 million and 27.6% margin (28.1% in 2020)
  • Reported net profit totaled EUR 183 million, reflecting the impact of COVID-19
  • Recovery in plasma collections under way - increasing 4% in the last three quarters, a positive trend we expect to see accelerate through 2022
  • Enhancing plasma volumes through expansion of plasma capacity (+2 million liters) and capabilities. Measures in place to reinforce plasma supply as collections fully recover, as well as underpinning innovation, while streamlining the organization
  • Grifols is in a sound financial position, and is well invested to support sustainable growth
  • Grifols to acquire Biotest: a unique opportunity to strengthen its positioning by accelerating and broadening its pipeline and commercial footprint. The Public Tender Offer has achieved so far over 96% of voting rights and 70% of share capital

Barcelona, February 28, 2022.- Grifols (MCE: GRF, MCE: GRF .P, NASDAQ: GRFS) reported 2021 revenues of EUR 4,933.1 million, a 3.7% cc2 decline (-7.6% reported), in a year marked by the company’s resilience and unwavering efforts to offset extraordinary COVID-19 challenges resulting in reduced plasma volumes.

Grifols reported EUR 2,396.5 million in revenues in the second half of 2021, a 9.8% cc
decrease (-10.0%), with the fourth quarter significantly better than the third. Bioscience and Diagnostic divisions were affected by lower plasma collections in the first half of the year and lower year-on-year COVID-19 tests sales compared to the second half of 2020, respectively. Hospital and Bio Supplies divisions reported growth in the second half.

Plasma collections increased by 4% in the last three quarters of the year (-4% in 2021 overall) mainly driven by acquired and new centers, which will collectively provide 2 million liters of additional capacity per year. This positive trend has continued and is expected to accelerate throughout 2022 as the industry recovery trend gains strength.

This expected acceleration builds on measures in place to grow plasma supply, including: further contribution from new and acquired centers, a new donor compensation scheme, greater talent retention and digital improvements resulting in optimized headcount, software automation and flow-time reductions, as well as digital marketing enhancements.

The Bioscience Division reported a 5.9% cc decline (-10.1%) in revenues to EUR 3,815.0 million at year-end, and a -12.0% cc decline (-12.2%) in the second half to EUR 1,829.0 million. Robust underlying demand across key proteins, coupled with mid-single-digit price increases, solid performance of Alpha-1, Albumin and specialty proteins, and contribution from new products, partially offset plasma supply constraints. These impacted immunoglobulins’ volume growth, specially in the second half of the year. Xembify® showed higher demand, while Vistaseal™ and Tavlesse® gained traction, and ALBUTEIN FlexBag™ was launched in November.

Diagnostic Division revenues grew by 3.5% cc (0.4%) to EUR 779.1 million in 2021, despite the 11.7% cc decline (-12.0%) to EUR 383.6 million in the second half. The TMA (Transcription-Mediated Amplification) molecular test to detect the SARS-CoV-2 virus and Blood Typing Solutions were core growth drivers, offsetting the impact of the mandatory termination of Zika testing in blood and plasma donations.

Hospital Division revenues grew by 20.3% cc (19.0%) to EUR 141.2 million in 2021. The Division reported robust growth in the second half, expanding by 21.2% cc (20.8%) to EUR 73.4 million. The Division’s positive performance was driven by all business lines as hospital investments return to normal levels.

Bio Supplies Division revenues increased by 4.8% cc (0.7%) to EUR 225.8 million in 2021, reinforced by a 22.0% cc growth (21.7%) to EUR 118.5 million in the second half of the year, mainly fueled by higher third-party plasma sales, followed by NTU albumin and cell culture media.

The gross margin in 2021 stood at 39.8% (42.2% in 2020) and 35.4% in the second half, impacted by lower plasma volumes and higher cost per liter as a result of lower absorption of fixed costs and higher donor compensation. Grifols expects cost per liter to gradually decrease as plasma collection volumes recover.

Reported EBITDA reached EUR 961.5 million with a 19.5% margin in 2021 (EUR 327.0 million and 13.6% in the second half), compared to EUR 1,324.0 million and 24.8% in 2020. The adjusted EBITDA margin represented 20.6% of revenues. In addition to the aforementioned impacts, EBITDA was affected by higher operating expenses following the integration of newly acquired companies, including Alkahest and GigaGen to reinforce Grifols’ innovation assets, transaction and restructuring costs, and inflationary pressures.

Grifols’ efforts to become a leaner organization are mirrored in its operating cost containment plan. In line with the company’s commitment, EUR 40 million in cost reductions were achieved in 2021, while additional EUR 60 million and EUR 40 million are expected to be realized in 2022 and 2023, respectively. Furthermore, savings of EUR 40 million related to R+D prioritization are also expected in 2022, while the company continues to divest in non-strategic assets.

The estimated COVID-19 net impact on EBITDA totaled EUR 503 million in 2021, primarily stemming from lower plasma volumes of EUR 420 million: lower sales (EUR 238 million) and lower absorption of fixed costs (EUR 183 million). Additionally, a higher donor compensation had an estimated impact of EUR 150 million and COVID-19 test sales positively contributed to EBITDA in EUR 68 million.

Excluding COVID-19 impacts, transaction and restructuring costs (EUR 52 million) and exchange rate variations (EUR 54 million), underlying EBITDA totaled EUR 1,570 million at 27.6% margin (EUR 1,544 million at 28.1% in 2020).

Grifols anticipates a return to growth and improved profitability as plasma collections normalize. Revenues and margins are expected to progressively improve throughout 2022, backed by geographic and product mix, strong underlying demand, a favorable pricing environment and reduced cost per liter through realization of scale efficiencies further supported by ongoing efforts to streamline the organization.

Grifols continues to reinforce its innovation strategy within plasma and non-plasma assets, developing a risk-value balanced portfolio. In this context, total net investment in R+D+i amounted to EUR 329.3 million (EUR 174.0 million in the second half), representing 6.7% of revenues. The integration of Alkahest and GigaGen platforms will notably bolster and diversify Grifols’ pipeline. In terms of CAPEX, the company allocated EUR 280.9 million in 2021 (EUR 163.6 million in the second half).

The financial result stood at EUR 277.8 million in 2021 (EUR 158.4 million in the second half), an increase resulting from the issuance of senior unsecured bonds to finance the Biotest AG investment in the equivalent amount of EUR 2,000 million.

Share of results of equity-accounted investees mainly included the write-up of the GigaGen investment (EUR 34.5 million), following the purchase agreement in the first quarter of 2021 to acquire the remaining capital.

The reported net profit totaled EUR 182.8 million (EUR 618.5 million in 2020), reflecting COVID-19 impact.

Excluding the impact of IFRS 163, net financial debt reached EUR 5,828.0 million and the leverage ratio stood at 5.4x. Excluding COVID-19 impacts the ratio was 3.7x. The ratio increased throughout the year as a result of strategic acquisitions totaling EUR 520 million to secure plasma supply and reinforce innovation projects. Decreasing leverage remains a priority, aiming to reduce its ratio to <4x in 2023 and <3.5x in 2024.

As of December 31, 2021, Grifols’ liquidity position to EUR 1,277 million, including a cash position totaled EUR 655 million.

Grifols remains committed to its long-term vision and delivering value to its stakeholders, with fundamentals unchanged. Moving forward, the company will leverage its efforts to increase its plasma supply, expand and diversify into new markets and foster innovation, while maintaining financial discipline and becoming a leaner organization.


1Excludes transaction, restructuring and divestment costs
2Operating or constant currency (cc) excludes changes rate variations reported in the period
3As of December 31, 2021, the impact of IFRS 16 on total debts stands at EUR 874 million