Grifols' shares tank 10% as 2023 outlook disappoints
By Joan Faus and Matteo Allievi
BARCELONA (Reuters) -Spanish pharmaceutical company Grifols' shares fell around 10% in afternoon trading after its 2023 outlook disappointed analysts, who were looking for a better recovery in margins.
Grifols' shares were 9.6% down at 15:44 GMT and were the worst performers on the blue-chip Spanish Ibex index, which was up 0.97%.
Grifols reported on Tuesday that net profit rose 10% to 208 million euros ($220.19 million). Total revenues rose 23% to 6 billion euros ($6.38 billion), with over half generated in the United States and Canada.
Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 27% year-on-year to 1.2 billion euros, with a margin of 21%.
The Barcelona-based company, which uses blood plasma to make medicines, expects its EBITDA to rise to 1.7 billion euros in 2023, with a margin of 21-23%. Total revenue is forecast to grow between 8% and 10%, a slower pace than in 2022.
"A 21-23% margin for 2023 seems low if it was already 21% this year and all the cost and plasma volume improvements are expected. The market wants more," Renta 4 analyst Alvaro Aristegui told Reuters.
JPMorgan said the progress on EBITDA margin recovery in 2023 may be a little slower than the market had hoped.
Grifols was severely hit at the start of the pandemic due to plasma shortages but said its blood plasma collection grew more than 25% last year.
The company's reported net profit was below Refinitiv's estimate of 280 million euros, revenue was slightly above, while its EBITDA was in line with estimates.
Grifols said it achieved its 2022 targets.
"For 2023, we believe the company has a solid base upon which to build its future," its two co-Chief Executives Victor Grifols and Raimon Grifols said in a statement.
Grifols announced earlier this month it would lay off 8.5% of its workforce seeking annual savings of around 400 million euros. A week later, it said Steven F. Mayer had resigned as its executive chairman due to health and other personal reasons.
($1 = 0.9446 euros)
($1 = 0.9411 euros)
(Reporting by Joan Faus and Matteo Allievi, additional reporting by Emma Pinedo; Editing by Sharon Singleton and Inti Landauro)