REVENUES INCREASED ACROSS ALL DIVISIONS AND REGIONS WHERE THE COMPANY OPERATES
THE U.S. REMAINS AS A KEY MARKET, GROWING BY 8.7% IN 2018
REVENUES IN EUROPE INCREASED BY 16.7%
GRIFOLS ANNOUNCED A STRATEGIC ALLIANCE IN CHINA
In 2018, Grifols’ financial performance on sales growth, expansion and diversification of its global network of plasma centers, and increased efforts to drive capital investments and innovation.
ANALYSIS OF RESULTS BY DIVISIONS
- Solid demand for main plasma proteins.
- Increased demand for immunoglobulin in the U.S. and main EU markets, led by Spain, Germany and the United Kingdom. Turkey, Brazil and Australia also reported strong demand.
- Global leader in plasma centers with 256 sites.
- Innovation: launch of a liquid formulation of alpha-1 antitrypsin; new anti-rabies immunoglobulin; and new intramuscular immunoglobulin to treat patients exposed to hepatitis A and measles.
- Presentation of topline results on the efficacy of the AMBAR clinical trial to slow down the progression of Alzheimer’s.
ONE OF THE TOP THREE GLOBAL LEADERS IN THE PRODUCTION OF PLASMADERIVED MEDICINES
RESEARCH PIONEERS IN THE SEARCH FOR NEW THERAPIES
- Upward trend in NAT technology (Procleix® NAT Solutions) donor-screening lines and blood-typing solutions.
- Continued business consolidation of recombinant proteins used to produce immunoassays.
- Expansion of specialty diagnostics portfolio through own products and third-party agreements.
- Ongoing development of new diagnostic tests for personalized medicine.
- Innovation: new FDA-approved reagents to detect HIV and hepatitis B and C (Procleix® Ultrio Elite) and West Nile virus (Procleix® WNV), among others.
- Growing internationalization and expansion in strategic regions: key markets include U.S. and the Middle East, as a main markets.
LEADERS IN BLOOD AND PLASMA ANALYSIS TECHNOLOGY
- Higher sales in all of the division’s business lines.
- Notable growth in Pharmatech and intravenous solutions manufactured in the Murcia plant thanks to distribution agreement with Henry Schein.
- Increasing internationalization, with significant growth in the U.S. market.
- The Spanish market remains critical and market penetration increases in Latin America.
- Pharmatech is a main engine for growth: the business line offers integrated solutions for hospital pharmacies, including MedKeeper and Kiro Oncology products and services.
- Greater capital investments to expand production capacity.
COMPREHENSIVE SOLUTIONS THAT OPTIMIZE THE EFFICIENCY OF HOSPITAL PHARMACIES
LEADERS IN INTRAVENOUS SOLUTIONS
BIO SUPPLIES DIVISION
This division oversees three main areas:
- Sales of biological products for non-therapeutic uses.
- Kedrion production agreements.
- Third-party plasma sales channeled through Haema and Biotest.
BIOLOGICAL PRODUCTS FOR NON- THERAPEUTIC USES
ECONOMIC PERFORMANCE IN 2018
THE COMPANY INTENSIFIED ITS EFFORTS IN SEVERAL AREAS IN 2018 TO REINFORCE ITS LEADERSHIP IN ITS AREAS OF OPERATION AND CREATE VALUE FOR ITS MAIN STAKEHOLDERS
For more information on Grifols’ 2018 financial performance, please consult the annual statements available on http://www.grifols.com/es/web/international/investor-relations/annual-report-and-annual-audited-account
2018 TAXATION: CONTRIBUTIONS, PRINCIPLES AND BEST PRACTICES
GRIFOLS’ BOARD OF DIRECTORS ADHERED TO THE CODE OF GOOD TAX PRACTICES
- Grifols adheres to the taxation principles and best practices outlined in its fiscal policy, which is approved by the Board of Directors:
- Business decisions are tied to the payment of required taxes in all jurisdictions where the Group operates. For Grifols, tax compliance is a core element of its Corporate Social Responsibility policy, as well as a pillar of its economic contribution and social commitment.
- Grifols has no operations in territories qualified as tax havens. Its commercial operations with third parties based in such territories, or any others, are carried out as part of its ordinary industrial or commercial activity. In line with international taxation principles and recommendations by the OECD Committee on Tax Matters, Grifols rejects artificially shifting results to such territories or taking advantage of the information opacity that these territories may offer. Transparency in tax-related matters is a cornerstone of Grifols’ tax policy.
- Grifols’ system of internal information and control procedures significantly mitigates fiscal risk.
- Grifols’ tax policy is guided by a reasonable and prudent interpretation of the tax regulations in force in each jurisdiction.
- The company consults with reputable independent tax advisors before making business decisions that could have a tax impact.
- Grifols follows a transfer pricing policy for all operations with related parties that aligns with the principles of the main competent international organizations. This policy is reviewed on an annual basis to avoid any deviation from these principles.
- Grifols understands and supports tax contributions that adequately correlate with the structure and location of its activities, resources, human resources, and materials and business risks assumed.
- Grifols does not use artificial structures unrelated to its activity to reduce the tax burden or for profit shifting.
- Grifols fosters a cooperative and fluid relationship with tax authorities based on respect for the law, trust, good faith, reciprocity and cooperation.
- Grifols collaborates with the competent tax authorities to detect fraud and seek solutions to address fraudulent fiscal practices that may arise in markets where the company operates.
- In alignment with its commitment to transparency, Grifols does its utmost to provide complete information and documentation requested by tax administrations in the shortest timeframe possible.
GRIFOLS’ TOTAL TAX CONTRIBUTION TOTALED MORE THAN EUR 624 MILLION IN 2018
Grifols upholds its commitment to contributing toward economic, social and industrial development through rigorous compliance with the tax legislation of each jurisdiction and in adherence with OECD Guidelines for Multinational Enterprises.
Its diverse operations generate direct and collected taxes that are paid to tax authorities.
The company’s direct tax contributions for the 2018 fiscal year totaled approximately EUR 372 million. This amount includes direct taxes such as corporate income tax, social security payments and taxes on products and services, as well as environmental taxes paid in Grifols’ countries of operation.
Grifols also contributes by collecting taxes generated by its operating activities on behalf of governmental authorities. In 2018, the company withheld EUR 252 million in third-party taxes, which were paid to the corresponding governmental authorities in the U.S. and Spain. These amounts primarily comprise income taxes and dividend taxes. Value added tax (VAT) and other taxes are not included in Grifols’ 2018 tax contributions.
The group’s tax contributions are a direct reflection of the principles that guide its fiscal strategy.
GENERATING VALUE: CREATING AND DISTRIBUTION
IN 2018, 90% OF GRIFOLS’ VALUE CREATION WAS DISTRIBUTED
Grifols focuses its strategy on long-term profit and value creation. Toward this end, the company strives to create wealth for its main stakeholder groups by generating stable employment, promoting research, advancing the economic development in regions where it operates, and gaining the trust of stakeholders and investors to guarantee sustainable growth while fulfilling its mission of enhancing the health of patients worldwide.
Grifols’ value creation reached EUR 4,501 million in 2018, a 4% increase over the previous year. Nineteen percent (19%) of the value generated was allocated to its global workforce, which grew 16% in 2018 to 21,230 employees. The company channeled EUR 198 million to innovation, which represents 4% of total generated value. Community investments totaled more than EUR 33 million, including research awards, educational programs and scholarships to promote global research; donations to foundations and NGOs; and social outreach activities in benefit of patients and local communities. The company contributed EUR 624 million in taxes, which represents 14% of total value generated.
The following tables offer an overview of Grifols’ creation and distribution of economic value. Together they highlight the company’s efforts to ethically and responsibly manage its resources in strict compliance with the legislative frameworks in place in its countries of operation.