Investing.com -- Grifols reported third-quarter revenue above expectations on Monday, driven by growth in its Biopharma business, and confirmed its full-year guidance. The company's U.S.-listed shares closed 5% higher in the Monday session but slipped 1.4% in premarket trading Tuesday.
Grifol's Madrid-listed shares were also down 1.1%.
Revenue reached €2.04 billion, up 8.4% at constant currency and ahead of the consensus estimate of €1.98 billion. Net profit rose 27.9% to €162 million, while adjusted EBITDA increased 9.8% at constant currency to €538 million, with a margin of 26.4%.
"The third-quarter results reflect continued execution of our plan, with growth in our core franchises translating into improving profitability and cash generation," CEO Nacho Abia said.
Biopharma revenue grew 10.3% at constant currency in the quarter. Immunoglobulin sales, the company's main growth driver, rose 11.3%, with subcutaneous immunoglobulins jumping 40.3%. The Alpha-1 and specialty proteins franchise grew 18.2%, supported by rabies-related products.
Albumin revenue, however, fell 13.2%, mainly due to regulatory factors and high inventory levels in China.
Grifols generated €208 million of free cash flow before M&A in the quarter. Its net leverage ratio fell to 3.98 times from 4.2 times a year earlier, and liquidity rose to €2.14 billion. After refinancing its 2027 obligations, the company faces no significant maturities until the fourth quarter of 2028.
"We continue to make tangible progress on our key priorities: responsible profit growth, disciplined cost management, margin improvement, deleveraging progress and free cash flow generation – resulting in a stronger balance sheet and very strong liquidity," CFO Rahul Srinivasan said.
Grifols Egypt is on track to collect about 1 million liters of plasma this year, with a goal of up to 3 million liters annually by 2029. Topline results from the Phase 3 SPARTA study are expected by the end of the fourth quarter.
Vahid Karaahmetovic contributed to this report.
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