Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We are successfully executing our operational improvement plan, as we speak more than 80% of the initial 400 million cash cost savings have been already deployed |
| We continue to maintain a strong position in the IG market with a diversified product portfolio that includes Grifols and Biotest intravenous immunoglobulins, our subcutaneous immunoglobulin commercialized in the US and having received approval in several European countries and Australia for PID and secondary immune deficiency in 2022 as well as our hyperimmune |
| We will improve our financial profile, reduce debt, execute and deliver our operating improvement plan, capture commercial opportunities and unlock Biotest substantial value |
| This is supported by strong focus on a performance-driven culture, which will continue to make the company more efficient, effective, agile, decisive and accountable |
| In fact, over the last year, the senior leadership team has already made significant strides to reinforce our operational excellence, of which the most important first step was establishing a new organizational model |
| So we are very confident that with the lifecycle management that we have in place that will come in the short and mid-term, we'll be able to capture significant value of this market growth and I think what else -- to the HNB5 in our current IG portfolio accounts for around 5% |
| These numbers confirm that our strong recovery path is ongoing |
| As a result of this, we're very confident that we can beat the full-year EBITDA EUR1.4 billion as well as the EUR1.7 billion considering the annualize cash cost savings |
| We're making a good progress on the several work streams of deleverage transactions and we plan, as already mentioned to complete one transaction during this year |
| A significant piece of this EBITDA improvement is driven by the EUR450 million operational improvement plan |
| I am pleased to report that in the first quarter of 2023, we are effectively meeting and exceeding our commitments, while we continue to execute on key priorities Grifols is on the rebound, and our operational delivery in this first quarter reflects this, while it also demonstrates the company's strong fundamentals in a growing market |
| In Q1, we also strengthened our performance culture by rolling out new short and long-term incentive plans aligned with shareholders' interests |
| This is on track, and we expect this to be a great success for us |
| Grifols delivered a solid financial start to the year, and we are on track to meet and improved guidance |
| Revenues grew by 23% and by 14% on a like-for-like basis excluding Biotest, driven by a strong performance of Biopharma, which delivered an increase of 26% and by 15% like-for-like |
| We expect this our momentum to persist, backed by robust underlying demand |
| The adjusted EBITDA bridge shows the improvement in Q1 reaching EUR299 million at 21% margin excluding Biotest, supported by positive performance for Biopharma, Bio Supplies as well as OpEx reduction |
| Victor Grifols Deu So regarding the operating cash flow in the Q1, as I said, we ended up with a positive operating cash flow, excluding the one-off restructuring charge so that gave us, you know, I would say a positive sentiment that the -- in the Q2 and coming quarters to show a positive operating cash flow |
| The execution of our operational improvement plan is also exceeding our expectations with more than 80% of the EUR400 million already deployed as of today |
| So, the fact that we want to be prudent, is -- doesn't have anything to do with FX, but on the contrary, as I said, we expect that -- we expect that the EBITDA margin will continue to increase and expand every other quarter |
| Regarding operating performance, as we see in the second chart, adjusted EBITDA on last 12-month basis reached EUR1.2 billion on the back of operational leverage and savings from the operational plan, showing a sequential improvement both in absolute terms and in margin |
| Next slide, Grifols is experiencing a turnaround supported by our strong financial performance, revenue continues to show sustainable growth with a high single-digit increase in the first quarter, driven by solid plasma supply by price increases by product mix, backed by our subcu IG |
| Good news on the execution of our operational improvement plan, which is progressing ahead of initial expectation |
| Additionally, we continue to make good progress on several workstreams to meet our debt reduction commitment in order to get to a leverage ratio of 4 times by 2024 |
| Returning to our commercial and innovation priorities, we continue to see significant opportunities for our high margin Alpha-1 PROLASTIN, and our subcutaneous IG product, Xembify |
| We are increasingly better positioned and confident that we will keep building on this positive momentum |
| As Thomas mentioned, Grifols delivered solid results for the first quarter of 2023 across all key metrics beating our EBITDA guidance provided during our last earnings call |
| Alfredo Arroyo First of all, just to remind everybody that the plasma business in China is booming and some higher results that are publicly available since they're a listed company, I mean they are -- they are very impressive |
| Blood typing solutions were the main driver of the Diagnostic business unit, with a robust high single-digit growth rate recorded in key geographies such as the US and China |
| The development expected for '23 are very solid -- are a very solid combination of lifecycle management and new proteins such as Trimodulin, Fibrinogen, ATIII in sepsis, which we expect to continue significantly to the -- to the company plasma economics in the mid-term |
| Statement |
|---|
| And the second question would be regarding free cash flow, which obviously has been negative this Q1, because of all the cost saving plan |
| Since then, the dollar has weakened somewhat against the euro, which is normally bad for your reported EBITDA and even worse for margins |
| This means that they donor fees has been -- has kept going down in Q1 what I think -- I wonder on the rest of analysis, because of this in the second half of the year or at least in Q4, should we not see a positive impact of this further decline in the donor fee |
| If the donor fee has declined by minus 25% from peak subcategories, you said it was minus 20% |
| FX impact with no significant I would say, impact on this Q1 of 2023, while our gross margin is still impacted by high cost per liter from the plasma collected in the first half of 2022, due to the nine-month lag inventory accounting, now we are in the recovery path |
| Recombinant proteins increased by 28%, including a diagnostic company commercial true-up of 90 million, which was partially offset by lower joint business profits, excluding this through revenues decreased by 32% |
| So A, have I got that correct? B, does that not imply that the underlying increase in guidance is probably slightly higher than that revealed by the figures you have given this morning? And then C, and also partially explain your caution regarding margins in the second half of the year, because obviously the dollar impact will be more significant in H2 than will be in H1 at current rates |
| As I noted in our meetings, we understand that to do so, we will need to consistently deliver on our commitments, which we are already doing and will continue to do |
| Secondary immune deficiencies have notably increase due to an aging population and the use of immunosuppressive therapies such as immuno-oncology treatments for which IG is often the preferred and only option |
| And could that be a bit conservative H2 |
| The donor fees, as you have seen there is kind of progressive trend of lowering those donor fees versus the peak in July |
| Regarding CIDP and one company delaying the results until July, it's kind of wait and see what they bring as news to the market |
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