Key insights
- Grifols' Q1 revenue slightly missed consensus due to China albumin pricing pressure, though net profit increased. Immunoglobulin sales, particularly Gamunex in the US, drove growth. Albumin revenue declined. While the company cited resilience, the revenue miss and pricing concerns in a key market like China present a slightly negative signal for related US-listed healthcare companies.
Investing.com -- Grifols shares fell 0.8% after the Spanish plasma products maker reported first-quarter revenues of €1.7 billion, a 3.3% increase on a constant currency basis but slightly below analyst consensus of €1.72 billion, as China albumin pricing pressure and a tough comparison base in specialty proteins weighed on top-line growth.
Net profit rose 21.9% year-on-year to €73 million, while adjusted EBITDA reached €381 million, up 0.8% on a constant currency basis, with margins stable at 22.4%.
The Biopharma division remained the primary growth engine, with revenues up 6.8% on a constant currency basis.
The immunoglobulin franchise was the standout performer, growing 15.3% on a constant currency basis, supported by sustained demand for Gamunex in the U.S. and core European markets and the U.S. launch of Biotest's next-generation IVIG product Yimmugo.
Albumin revenues declined 6.1% on a constant currency basis, reflecting ongoing government-driven pricing pressure in China.
Free cash flow pre-M&A improved by €30 million year-on-year to negative €8 million, supported by working capital management and lower capital expenditure. Leverage stood at 4.3 times at quarter-end, with liquidity of €1.6 billion.
CEO Nacho Abia said the results demonstrated "the resilience of our business and the strength of our underlying fundamentals" in a complex geopolitical and macroeconomic environment.