Most of Grifols’ profits come from companies it doesn’t own. According to the report prepared Gotham City InvestigationThe profits of companies not controlled by Grifols, which caused a stock market storm in the Catalan pharmaceutical company, still represent a very high share of the Ibex-35-listed company’s profits, despite being managed and linked. .
The origins of this corporate move date back to Grifols’ 2018. sold two companiesBiotest US Corporation and Haema AG to Scranton company controlled by the founding familyGrifols also has a 30% stake. While these companies, whose business is to obtain plasma, have passed into the hands of the family, Grifols no longer has a stake, but maintains the buyback option. Thereafter, Grifols continued to record the revenues and profits of these companies, which he did not own, in his own accounts, arguing that there was a possibility that he could regain control, according to documents published by the British analysis house.
According to the document published by Gotham City Research, 40.1% of Grifols’ profits in 2022 come from Biotest US Corporation and Haema. According to accounts published on the Catalan company’s website, this represents 83.48 million euros, taking into account that the result attributable to the group is 208.2 million. Grifols would derive 99% of its profits in the accounts published so far for 2023 from companies over whose capital it does not have direct control.
Recorded profit can be up to 253 million
Companies not controlled by Grifols until 2018, they did not contribute benefitsonly losses on the income statement Earnings of the Catalan company: 15.4 million euros between 2012 and 2018, according to Gotham City Research. But, The situation reversed after the shareholders of the two companies in question changed control. As Gotham reported in its report, Biotest and Haema began to account for a high percentage of Grifols’ consolidated profits “even after their ownership interest was reduced to zero.”
In 2019, 2020, 2021 and 2022 out of control interest (companies where it is below 50%) increased the profits of the listed company by 23.5, 90.4, 76.6 and 62.9 million euros each year, respectively. Total, Profit of 253 million euros was not transferred directly to the biotechnology companyeven though he takes them into account and they represent high percentages of his profits: 3.6%, 12.8%, 28.9% and 23.2%, respectively, each year.
The number and weight of these companies, over which Grifols did not have control, but which it accounted for in its accounts, increased rapidly, reaching 96% in 2023: 99.6 million of the 103 million euros earned by Grifols came from the following companies: According to the above-mentioned report, this type. Gotham blames Grifols’ management team “value transfer from the listed company to the Grifols family”. “If the projections go as expected, Scranton (the Grifols family) could keep the business; if not, the Grifols could buy it back,” they added.
According to the Gotham report, Grifols, in recent years, it would also be accounting for the total results of its subsidiary Grifols Diagnostic Solutions (GDS). “We find that Grifols’ full inclusion of GDS in the company’s ebitda significantly overstates its earnings power. Grifols sold 45% of its shares in GDS as part of the SRAAS acquisition in 2020, retaining the remaining 55%,” the person cited above said. He left.” document. All these accounting moves could have artificially increased the Catalan company’s ebitda by 46%.