Grifols experienced a decline in shares following the announcement of restructuring costs impacting their year-end results.
Revenue and Net Profit Decrease
Despite reporting an 8.7% increase in revenue to 6.59 billion euros, including contributions from Biotest, net profit for the year saw a significant drop to EUR59.3 million, down by 71% compared to the previous year due to the impact of restructuring costs.
Guidance for 2024 and Analysts’ Views
Grifols provided guidance for 2024, which led to mixed reactions among analysts. The company forecasted at least 7% total revenue growth driven by biopharma and an adjusted EBITDA of EUR1.8 billion, excluding contributions from Shanghai RAAS.
Analysts’ Perspectives
While some analysts view the EBITDA guidance as slightly below expectations, others consider it a baseline rather than a target. Berenberg analysts noted that previous patterns suggest potential adjustments throughout the year.
On the other hand, Barclays analysts found the 2024 guidance to be slightly underwhelming but acknowledge that these targets set a minimum standard for management to meet.
In conclusion, Grifols faces challenges ahead as it navigates through restructuring costs while aiming for growth in the upcoming year.