Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GRIFOLS SA. We currently have 3 research reports from 1 professional analysts.
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Strong Bioscience but margin pressure continues
15 Mar 17
Grifols’ Q4 and FY 16 results came in largely in line with our expectations. Q4 16 revenue increased 3% yoy to €1.1bn, mainly driven by the Bioscience division, but partially offset by the weakness in the Diagnostic business. Profitability continued to be sluggish, with EBITDA declining 2% to €298m (the margin decreased 137bp to 27.2%), plagued by declining royalties from the transfusion diagnostics unit and higher plasma costs. For the full year, while revenue was up 3% to €4bn (in line with our estimate), EBITDA fell 2% to €1.14bn (vs. our expectation of €1.15bn). Net income increased 3% to €545m (albeit below our estimation of €554m), benefiting from lower financial expenses and a one-off gain of €24m (related to reclassification of investment in TiGenix). As announced earlier, Raimon Grifols Roura and Victor Grifols Deu have assumed the position of joint CEO, replacing Victor Grifols Roura, who will continue to be the chairman of the board. The company recently completed (in February 2017) the refinancing of debt of $6.3bn, lowering the cost of debt by c.100bp.
Acquires Hologic’s share of the NAT unit JV
21 Dec 16
Grifols announced the buyout of Hologic’s share of their existing JV of the NAT (Nucleic Acid Analysis) donor screening business for $1.85bn. The deal, representing an EV/EBITDA of c.11.6x, brings in R&D and manufacturing (including a plant in San Diego, US) of assays and instruments based on the NAT technology (Grifols already has commercialisation rights). The transaction is expected to be completed by Q1 17.
Bioscience strong while Diagnostic recovers, but margins remain subdued
29 Nov 16
Grifols Q3 16 results came in broadly in line with consensus as well as our expectations. Sales were up 3% yoy to €1bn (+4% at cc), driven by growth across all three divisions. Geographically (all at cc), while the US/Canada (+8%; Q2: +6%) and Rest of the World (+5%; Q2: +7%) continued to do well, Europe showed an improvement (-1%; Q2: -4%). EBIT remained subdued, declining 3% to €239m (the margin decreased c.150bp), plagued by the known issues (transition of operations between its two Clayton, North Carolina, plants, declining royalties from the transfusion diagnostics unit and higher plasma costs). The extent of the weakness in the EBIT margin is higher than our expectations. However, net profit increased 1% to €142m (the margin declined 26bp), due to lower financial expenses and the effective tax rate. The company has announced an interim dividend of €0.18 per share compared with €0.175 last year (after adjusting for the 2:1 stock split completed on 4 January 2016).
Interim results lead to upgrades
27 Mar 17
Bioventix reported a strong set of interim results with revenues increasing by 32% (c.12-17% at constant exchange rates (CER)), driven largely by the continued roll-out of its customers’ Vitamin D assay products. This, in turn, led to a 41% increase in pre-tax profits and a 40% increase in adjusted EPS; which is reflective of the operational gearing of the business. We are upgrading our adjusted EPS to 78.7p (+5%) and, consequently, are raising our target price to 1750p. At this price level, the shares would trade on a 22.4x FY 2018 P/E and an EV/EBITDA of 17x. We await confirmation of Siemen’s high sensitivity troponin assay launch, expected in FY 2018.
27 Mar 17
Elecosoft* (ELCO): Steadily building profits (CORP) | Bioventix* (BVXP): Interim results lead to upgrades (CORP) | Hurricane Energy (HUR): Halifax discovery (BUY) | KBT Business Technology* (KBT): interims and contract win (CORP) | Independent Oil & Gas* (IOG): Licence updates (CORP)
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
Sinclair Pharma - Aesthetically Positioned to Continue Double-Digit Growth
23 Mar 17
With an innovative and differentiated product portfolio of injectable devices addressing the fast-growing aesthetics market, Sinclair is best positioned to continue to achieve double-digit revenue growth in the medium term.