Grifols’ Q4 had the same theme as the last quarter – strong top-line but stumbling at the profitability level, due to high raw material costs and other investments. Albumin sales in China were negatively impacted by a delay in the renewal of some licenses. US and Europe reported strong delivery but ROW, perhaps also attributable to China, declined during the quarter. Profit estimates are likely to be revised downwards marginally but our recommendation is likely to be maintained.
01 Mar 2019
Profits fall short
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Profits fall short
Grifols, S.A. Class A (GRF:WBO) | 0 0 1.0% | Mkt Cap: 14,874m
- Published:
01 Mar 2019 -
Author:
Kamla Singh -
Pages:
3
Grifols’ Q4 had the same theme as the last quarter – strong top-line but stumbling at the profitability level, due to high raw material costs and other investments. Albumin sales in China were negatively impacted by a delay in the renewal of some licenses. US and Europe reported strong delivery but ROW, perhaps also attributable to China, declined during the quarter. Profit estimates are likely to be revised downwards marginally but our recommendation is likely to be maintained.