Grifols(GRFS) - 2025 Q2 - Quarterly Report

Form 6-K Filing Information This section provides an index of documents included in the Form 6-K filing, detailing the press release, presentation, and interim financial statements Document Index This section lists the documents included in the Form 6-K filing, which are the press release, results presentation, and condensed consolidated interim financial statements for the six-month period ended June 30, 2025 Document Index | Item | Description | Page Number | | :--- | :--- | :--- | | 1. | Press release, dated July 29, 2024 | 3 | | 2. | Results presentation, dated July 29, 2024 | 7 | | 3. | Condensed Consolidated Interim Financial Statements for the six-month period ended 30 June 2025 | 47 | Half-Year 2025 Results Press Release This section presents the official press release detailing Grifols' financial and operational performance for the first half of 2025 Executive Summary of H1 2025 Performance Grifols reported strong first-half 2025 results, with revenues increasing by 7.0% cc to EUR 3,677 million, driven by Biopharma H1 2025 Key Financial Highlights | Metric | H1 2025 (EUR million) | Growth (cc) | H1 2024 (EUR million) | | :--- | :--- | :--- | :--- | | Revenues | 3,677 | 7.0% | 3,444 | | Adjusted EBITDA | 876 | 12.7% | 791 | | Adjusted EBITDA Margin | 23.8% | +80bps | 23.0% | | Net Profit | 177 | 387.6% | 36 | | Free Cash Flow pre-M&A | -14 | +182 (YoY improvement) | -196 | | Leverage Ratio | 4.2x | -1.3x (vs H1 2024) | 5.5x | | Liquidity | 1,414 | +499 (vs H1 2024) | 915 | - Reinstated a dividend payment of EUR 0.15 per share, reflecting commitment to shareholder returns[12][13] - On track to launch Fibrinogen in Europe in Q4 2025 and in the U.S. in H1 2026, following FDA approval[12][18] Business Segment Performance Highlights The Biopharma segment was the primary growth driver, with an 8.2% cc revenue increase, led by strong immunoglobulin (IG) sales, particularly SCIG H1 2025 Revenue Growth by Segment (Constant Currency) | Segment | H1 2025 Revenue Growth (cc) | | :--- | :--- | | Biopharma | 8.2% | | Immunoglobulin (IG) | 12.5% | | IVIG | Outpaced market growth | | SCIG | 66% | | Alpha-1 and Specialty proteins | 4.8% | | Albumin | -3.7% | | Diagnostic | 2.8% | - Biopharma growth was led by continued momentum in the immunoglobulin (IG) franchise, with Alpha-1 also gaining traction[15] - Diagnostic growth was driven by Molecular Donor Screening (MDS) across EMEA and Asia-Pacific, and solid performance in Blood Typing Solutions (BTS)[19] Financial Position and Outlook Grifols reaffirmed its 2025 guidance and improved its Free Cash Flow pre-M&A guidance to EUR 375-425 million - Reaffirmed 2025 guidance and improved Free Cash Flow pre-M&A guidance to EUR 375-425 million[12][20] - Anticipates U.S. dollar depreciation to be a headwind for reported Revenue and EBITDA in H2 2025, but broadly neutral for Group Profit, leverage, and Free Cash Flow pre-M&A[21] Company Overview and Contact Information Grifols is a global healthcare company founded in 1909, specializing in plasma-derived medicines and transfusion medicine, operating in over 110 countries - Grifols is a global healthcare company, leader in plasma-derived medicines and transfusion medicine, operating in over 110 countries[25] - Focuses on four main therapeutic areas: immunology, infectious diseases, pulmonology, and critical care[26] - Operates the world's largest plasma donation network with close to 400 centers across North America, Europe, Africa, the Middle East, and China[27] Legal Disclaimer (Press Release) This section clarifies that the report contains forward-looking statements based on management's assumptions, which are subject to risks and uncertainties - Report contains 'projections and future hypotheses' that are subject to factors causing real results to differ materially[30] - Grifols assumes no obligation to publicly report, revise, or update projections or future hypotheses, except when expressly required by applicable legislation[30] - Document does not constitute an offer or invitation to purchase or subscribe shares[30] Q2 2025 Results Presentation This section contains the investor presentation for Q2 2025, offering a detailed review of business, financial performance, and strategic outlook Important Information and Disclaimers (Presentation) This section provides legal disclaimers regarding the presentation, emphasizing that it does not constitute an offer to purchase shares and contains forward-looking statements subject to various risks - Presentation does not constitute an offer or invitation to purchase or subscribe shares[33] - Contains forward-looking statements based on current assumptions and forecasts, subject to various known and unknown risks and uncertainties[34] - Includes Alternative Performance Measures (APMs) not prepared in accordance with IFRS, used by management for operational and strategic decisions, and not audited[35][36] Business Review Grifols' H1 2025 business review highlights strong performance driven by the Value Creation Plan, with significant growth in Biopharma, particularly immunoglobulins H1 2025 Performance Overview H1 2025 Performance vs H1 2024 | Metric | H1 2025 | H1 2025 vs H1 2024 | | :--- | :--- | :--- | | Revenue | €3,677m | +7.0% cc (+10.1% cc LFL) | | EBITDA Adj. | €876m | +12.7% cc (+20.1% cc LFL) | | Free Cash Flow (pre-M&A) | -€14m | +€182m | | Leverage ratio | 4.2x | -0.4x vs FY24 | - Strong business momentum driven by robust underlying demand, even after absorbing the IRA impact[12] - Value Creation Plan execution delivering results through margin expansion, commercial growth, and pipeline advancements[13][43][44] Biopharma Segment Growth Drivers Biopharma Revenue Growth (LTM Q2'25 vs LTM Q2'24, cc) | Segment | Revenue Growth (cc) | | :--- | :--- | | Biopharma | +10% | | IG | +60% | | Albumin | +1% | | Alpha-1 and specialty proteins | +7% | - Immunoglobulin (IG) showed strong momentum, growing ahead of the market, with accelerating SCIG[46] - Albumin saw resumption of China shipments in Q2 after license renewal in Q1, leveraging strategic local partnership[46] Operational Efficiency and Margin Expansion - Achieved 60% individualized nomogram implementation in U.S. centers, with a second wave kicked off to reach 100% adoption by 2026[49] - Higher IVIG manufacturing yield from operational excellence and ongoing efficiency improvements reducing donation time[49] - Continuous optimization of plasma supply supporting margin expansion[49] Research & Development Pipeline Key Pipeline Milestones (H1 & H2 2025) | Milestone | Status (H1 2025) | Target (H2 2025) | | :--- | :--- | :--- | | Giga 564 Oncology Phase 1B | Completed (1st patient enrolled) | - | | IgG (Flebo) in Dry Eye Disease Phase 2 IND submission | Completed | - | | Fibrinogen Congenital & Acquired Deficiency | - | EU approval | | Alpha-1 SubQ 15% Phase 1/2 | - | Topline results | | Xembify in CIDP | - | Phase 3 IND submission | | Gamunex-C in Bags | - | FDA submission | | Gamunex in SID | - | Phase 3 IND submission | Diagnostic Segment Momentum - Diagnostic business maintains positive momentum, driven by Molecular Donor Screening (MDS) and Blood Typing Solutions (BTS)[19][52] - Received FDA approval to begin manufacturing Gel Cards and reagent Red Blood Cells at Grifols' San Diego facility[19][52] - Strategic alliance with Inpeco focused on providing full automation solutions and developing the 'lab of the future'[52] Financial Performance Grifols reported a record H1 2025, with strong revenue growth driven by Biopharma and significant EBITDA expansion H1 2025 Key Financial Metrics H1 2025 Consolidated Financial Performance | Metric (in million EUR) | Q1'25 | Q2'25 | H1'25 | Var vs. PY (cc) | Var vs. PY (LFL cc) | | :--- | :--- | :--- | :--- | :--- | :--- | | NET REVENUE | 1,786 | 1,891 | 3,677 | 7.0% | 10.1% | | GROSS MARGIN | 695 | 744 | 1,438 | 11.6% | 19.8% | | Margin | 38.9% | 39.3% | 39.1% | +30bps | +300bps | | EBITDA ADJ. | 400 | 475 | 876 | 12.7% | 20.1% | | Margin | 22.4% | 25.1% | 23.8% | +80bps | +171bps | | PROFIT BEFORE TAX | 115 | 191 | 306 | 168.1% | - | | GROUP PROFIT | 60 | 117 | 177 | 387.6% | - | | FREE CASH FLOW pre-M&A | -44 | 30 | -14 | 182m | - | | Total net LR LEVERAGE RATIO | 4.5x | - | 4.2x | -1.3x | - | | LIQUIDITY | 1,675 | - | 1,414 | 499m | - | Revenue Analysis by Segment H1 2025 Revenue Breakdown (EUR million, cc) | Segment | H1 2025 | Growth (cc) | | :--- | :--- | :--- | | Biopharma | 3,154 | +8.2% | | Diagnostic | 332 | +2.8% | | Bio Supplies | 69 | -31.8% | | Others | 123 | +25.0% | | Total | 3,677 | +7.0% | - Biopharma segment drove +7.0% cc revenue growth, supported by solid performance and underlying demand, including Alpha-1's traction[56] - Diagnostic revenue growth was driven by Molecular Donor Screening (MDS) in EMEA and APAC, and Blood Typing Solutions (BTS) in key countries[56] EBITDA and Profitability H1 2025 EBITDA Adjusted (EUR million, cc) | Metric | H1 2025 | Growth (cc) | H1 2024 | | :--- | :--- | :--- | :--- | | EBITDA Adjusted | 876 | +12.7% | 791 | | EBITDA Adjusted Margin | 23.8% | +80bps | 23.0% | | EBITDA Adjusted LFL | 934 | +20.1% | 791 | - Strong EBITDA growth driven by volume growth, Cost Per Liter optimization, yield improvements, operational leverage, and cost discipline[59] - IRA impact was consistent with expectations, and FX impact was muted[59] Lower Cash Adjustments Accelerating EBITDA Convergence EBITDA Reported vs. Adjusted (EUR million) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | EBITDA Reported | 836 | 724 | | Adjustments | 40 | 67 | | EBITDA Adjusted | 876 | 791 | | EBITDA Adjusted Margin | 23.8% | 23.0% | - Continued reduction in cash adjustments, with a 55% decrease year-over-year, accelerating EBITDA convergence[61] - Drivers of lower cash adjustments include reduced restructuring costs and transaction costs[61] Free Cash Flow and Capital Allocation EBITDA Adjusted to Free Cash Flow Reconciliation (EUR million) | Metric | Q1'25 | Q2'25 | H1'25 | Var vs H1'24 | | :--- | :--- | :--- | :--- | :--- | | EBITDA Adjusted | 400 | 475 | 876 | 84 | | Net working capital | (128) | (30) | (158) | 17 | | CAPEX | (128) | (83) | (211) | 11 | | IT and R&D | (39) | (34) | (73) | (10) | | Taxes | (3) | (45) | (48) | 15 | | Interests | (55) | (235) | (290) | 49 | | Others | (16) | (19) | (110) | 15 | | Free Cash Flow pre-M&A | (44) | 30 | (14) | 182 | - Free Cash Flow pre-M&A improved by EUR 182 million year-on-year, reaching -€14 million for H1 2025[62] - Leverage ratio decreased to 4.2x, with strong liquidity of EUR 1.4 billion, and no meaningful maturities until Q4 2027[63] FY25 Guidance and Currency Impact - Reaffirmed 2025 guidance and improved Free Cash Flow pre-M&A guidance to EUR 375-425 million[20][65] - Depreciating U.S. dollar is a headwind for reported Revenue and EBITDA in H2, but expected to have a broadly neutral impact on Group Profit, Leverage, and FCF pre-M&A[21][65] - Company expects to mitigate FX headwinds through underlying business momentum and targeted cost levers[21][65] Final Remarks (Presentation) Grifols is effectively executing its Value Creation Plan, building on strong momentum to meet FY25 guidance - Executing effectively on the Value Creation Plan with proven results, building on strong momentum to reach FY25 guidance[68] - Expanding margins on the back of efficiency initiatives and pipeline execution to unlock long-term strategic value[68] - Improving Free Cash Flow generation and deleveraging, while being well-equipped to manage global market dynamics[68] Presentation Annex (Detailed Financial Data) This annex provides detailed financial tables and reconciliations for Q2 and H1 2025, including revenue breakdowns by business unit and country, full profit and loss statements, cash flow statements, and balance sheet data Revenue Breakdown (Q2 & H1 2025) Q2 2025 Revenue by Business Unit (Thousands of Euros) | Business Unit | Q2 2025 | Q2 2024 | % VS PY (Reported) | % VS PY (At cc) | | :--- | :--- | :--- | :--- | :--- | | Biopharma | 1,632,629 | 1,527,652 | 6.9% | 9.1% | | Diagnostic | 161,588 | 164,261 | (1.6%) | 0.4% | | Bio Supplies | 36,403 | 73,719 | (50.6%) | (49.3%) | | Others | 60,512 | 52,276 | 15.8% | 17.2% | | Total | 1,891,132 | 1,817,908 | 4.0% | 6.6% | H1 2025 Revenue by Business Unit (Thousands of Euros) | Business Unit | H1 2025 | H1 2024 | % VS PY (Reported) | % VS PY (At cc) | | :--- | :--- | :--- | :--- | :--- | | Biopharma | 3,153,789 | 2,922,355 | 7.9% | 8.2% | | Diagnostic | 331,632 | 322,544 | 2.8% | 2.8% | | Bio Supplies | 68,958 | 100,731 | (31.5%) | (31.8%) | | Others | 122,561 | 97,983 | 25.1% | 25.0% | | Total | 3,676,940 | 3,443,613 | 6.8% | 7.0% | Profit & Loss Statements (Q2 & H1 2025) Q2 2025 Consolidated P&L (Thousands of Euros) | Metric | Q2 2025 (Reported) | Q2 2024 (Reported) | | :--- | :--- | :--- | | Net Revenue | 1,891,131 | 1,817,908 | | Gross Margin | 743,794 | 670,444 | | Operating Result (EBIT) | 348,854 | 299,322 | | Profit Before Tax | 190,508 | 66,978 | | GROUP PROFIT | 117,062 | 14,841 | H1 2025 Consolidated P&L (Thousands of Euros) | Metric | H1 2025 (Reported) | H1 2024 (Reported) | | :--- | :--- | :--- | | Net Revenue | 3,676,940 | 3,443,613 | | Gross Margin | 1,438,461 | 1,301,289 | | Operating Result (EBIT) | 617,712 | 503,123 | | Profit Before Tax | 305,773 | 114,034 | | GROUP PROFIT | 176,787 | 36,259 | Cash Flow Statements (Q2 & H1 2025) Q2 2025 Consolidated Cash Flow (Thousands of Euros) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Cash Flow From Operating Activities | 155,267 | 252,861 | | Net Cash Flow From Investing Activities | (125,651) | 1,349,329 | | Net Cash Flow From Financing Activities | (163,407) | 59,439 | | Total Cash Flow | (133,791) | 1,661,629 | | Cash and Cash Equivalents at End of Period | 558,691 | 2,113,220 | H1 2025 Consolidated Cash Flow (Thousands of Euros) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 290,735 | 87,939 | | Net cash from/(used in) investing activities | (304,995) | 1,261,377 | | Net cash from/(used in) financing activities | (315,060) | 224,895 | | Net increase / (decrease) in cash and cash equivalents | (421,089) | 1,583,644 | | Cash and cash equivalents at year end | 558,691 | 2,113,220 | Balance Sheet (June 2025 & Dec 2024) Consolidated Balance Sheet (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Total Assets | 19,767,159 | 21,405,241 | | Total Equity | 7,598,153 | 8,607,025 | | Total Liabilities | 12,169,006 | 12,798,216 | | Goodwill | 6,858,103 | 7,403,056 | | Cash and Cash Equivalents | 558,691 | 979,780 | Alternative Performance Measures (APMs) Reconciliations H1 2025 Revenue Like-for-Like (LFL) Reconciliation (Millions of Euros) | Metric | H1'25 | H1'24 | | :--- | :--- | :--- | | Revenue Reported | 3,677 | 3,444 | | Fee-for-Service / GPO Reclassification | 48 | - | | Inflation Reduction Act (IRA) | 58 | - | | Revenue Like-for-Like | 3,783 | - | H1 2025 EBITDA Adjusted LFL Reconciliation (Millions of Euros) | Metric | H1'25 | H1'24 | | :--- | :--- | :--- | | EBITDA Adjusted | 876 | 791 | | Inflation Reduction Act (IRA) | 58 | - | | EBITDA Adjusted Like-for-Like | 934 | 791 | Leverage Ratio as per Credit Agreement (Millions of Euros) | Metric | LTM Q2'25 | LTM Q1'25 | LTM Q4'24 | LTM Q3'24 | LTM Q2'24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA LTM as per Credit Agreement | 1,902 | 1,819 | 1,753 | 1,605 | 1,500 | | Net Financial Debt as per Credit Agreement | 7,992 | 8,149 | 8,046 | 8,128 | 8,262 | | Leverage Ratio as per Credit Agreement | 4.2x | 4.5x | 4.6x | 5.1x | 5.5x | Condensed Consolidated Interim Financial Statements and Directors' Report This section includes the audited condensed consolidated interim financial statements and the directors' report for the first half of 2025 Report on Limited Review Deloitte Auditores, S.L. conducted a limited review of Grifols' condensed consolidated interim financial statements for H1 2025 - Limited review performed by Deloitte Auditores, S.L. in accordance with International Standard on Review Engagements 2410[103] - Conclusion: nothing came to attention to suggest interim financial statements for H1 2025 are not prepared, in all material respects, in accordance with IAS 34[104] - Interim financial statements do not include all information for a complete set of consolidated financial statements and should be read with the Group's 2024 consolidated financial statements[106] Summary of Condensed Consolidated Interim Financial Statements This section presents the core condensed consolidated interim financial statements for Grifols, including the balance sheet, statements of profit and loss, comprehensive income, cash flows, and changes in equity for the six-month period ended June 30, 2025, with comparative figures for prior periods Consolidated Balance Sheet Consolidated Balance Sheet (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Total Assets | 19,767,159 | 21,405,241 | | Goodwill | 6,858,103 | 7,403,056 | | Other intangible assets | 2,740,576 | 2,926,132 | | Property, plant and equipment | 3,096,578 | 3,341,846 | | Inventories | 3,346,864 | 3,560,098 | | Cash and cash equivalents | 558,691 | 979,780 | | Total Equity | 7,598,153 | 8,607,025 | | Non-current financial liabilities | 9,117,632 | 9,490,644 | | Total liabilities | 12,169,006 | 12,798,216 | Consolidated Statements of Profit and Loss Consolidated Statements of Profit and Loss (Thousands of Euros) | Metric | H1 2025 | H1 2024 | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | 3,676,940 | 3,443,613 | 1,891,131 | 1,817,907 | | Gross Margin | 1,438,461 | 1,301,288 | 743,795 | 670,443 | | Operating Result | 617,712 | 503,123 | 348,855 | 299,321 | | Finance result | (311,940) | (389,089) | (158,346) | (232,488) | | Profit before income tax | 305,772 | 114,034 | 190,509 | 66,978 | | Consolidated net profit | 230,802 | 47,041 | 138,381 | 24,764 | | Profit attributable to the Parent | 176,786 | 36,259 | 117,063 | 14,841 | | Basic earnings per share (Euros) | 0.26 | 0.05 | 0.17 | 0.02 | Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Thousands of Euros) | Metric | H1 2025 | H1 2024 | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Consolidated net profit | 230,802 | 47,041 | 138,381 | 24,764 | | Total Other comprehensive income (loss) for the year | (1,115,021) | 237,987 | (726,184) | (81,632) | | Total comprehensive income for the year | (884,219) | 285,028 | (587,803) | (56,868) | | Total comprehensive income attributable to the Parent | (690,699) | 234,727 | (447,609) | (74,520) | Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (Thousands of Euros) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 290,735 | 87,939 | | Net cash from/(used in) investing activities | (304,995) | 1,261,377 | | Net cash from/(used in) financing activities | (315,060) | 224,896 | | Net increase / (decrease) in cash and cash equivalents | (421,089) | 1,583,644 | | Cash and cash equivalents at year end | 558,691 | 2,113,221 | Statement of Changes in Consolidated Equity Statement of Changes in Consolidated Equity (Thousands of Euros) | Item | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Equity attributable to the Parent | 5,169,080 | 5,883,727 | | Non-controlling interests | 2,429,073 | 2,723,298 | | Total equity | 7,598,153 | 8,607,025 | - Total comprehensive income for H1 2025 was a loss of EUR 884,719 thousand, compared to an income of EUR 285,028 thousand in H1 2024, primarily due to translation differences[116][122] Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed explanatory notes to the condensed consolidated interim financial statements, covering general information, accounting principles, changes in consolidation scope, financial risk management, segment reporting, and specific asset and liability details General Information (Note 1) - Grifols, S.A. was incorporated on June 22, 1987, and its principal activity is providing corporate and business administration, management, and control services to its subsidiaries[123] - The Group's principal activity is the procurement, manufacture, preparation, and commercialization of therapeutic products, especially plasma-derived products[125] - Company shares are listed on the Spanish stock exchange (IBEX-35) and NASDAQ (ADRs)[124] Basis of Presentation and Accounting Principles (Note 2) - Condensed consolidated interim financial statements for H1 2025 prepared in accordance with IAS 34 Interim Financial Statements, as adopted by the European Union[127] - Accounting policies and basis of consolidation are consistent with the 2024 Consolidated Annual Accounts, with no significant impact from new standards effective in 2025[129][130] - No significant seasonality in operations affects the interpretation of these interim financial statements[137] Changes in Consolidation Scope (Note 3) - Increased equity stake in Biotest AG to 80.32% (99.25% of voting rights, 61.40% of preferred shares) through a delisting offer, with a total cost of EUR 108,011 thousand[13][144][146] - Acquired 0.58% of Araclon Biotech for EUR 960 thousand, increasing total voting rights to 76.43%[141][142] - Acquired Group 3 (8 centers) and Group 4 (6 centers) plasma collection centers from Immunotek in the U.S. for approximately USD 78,888 thousand and USD 62,428 thousand respectively, gaining full control of 28 centers[153][155] Financial Risk Management Policy (Note 4) - Identified new risk factors in H1 2025 related to potential tariffs on certain products in specific markets and regulatory changes in the United States affecting sales prices[160][162] - Internal analysis suggests these new risks are not considered to significantly impact the company's financial statements to date[160] Financial Reporting by Segment (Note 5) H1 2025 Net Revenues by Business Segment (Thousands of Euros) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Biopharma | 3,153,789 | 2,922,355 | | Diagnostic | 331,632 | 322,544 | | Bio Supplies | 68,958 | 109,563 | | Other | 122,561 | 89,151 | | Total | 3,676,940 | 3,443,613 | H1 2025 Net Revenues by Geographical Area (Thousands of Euros) | Geographical Area | H1 2025 | H1 2024 | | :--- | :--- | :--- | | US + Canada | 2,092,916 | 1,963,198 | | EU | 791,526 | 750,309 | | Rest of the World | 792,498 | 772,992 | | Total | 3,676,940 | 3,443,613 | H1 2025 Profit/(Loss) by Business Segment (Thousands of Euros) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Biopharma | 673,493 | 539,103 | | Diagnostic | 55,215 | 57,838 | | Bio supplies | 18,438 | 16,670 | | Others | 2,854 | 33,477 | | Unallocated expenses plus net financial result | (444,228) | (533,054) | | Profit before income tax from continuing operations | 305,772 | 114,034 | Goodwill (Note 6) Goodwill Movement (Thousands of Euros) | Metric | 31/12/2024 | Business Combination | Translation differences | 30/06/2025 | | :--- | :--- | :--- | :--- | :--- | | Net value | 7,403,056 | 244,116 | (789,069) | 6,858,103 | - Goodwill decreased by EUR 544,953 thousand in H1 2025, primarily due to translation differences and business combinations[166] - Goodwill is allocated to reporting segments (Biopharma, Diagnostic, Bio Supplies, Others) and tested for impairment at least annually; no impairment indication as of June 30, 2025[167][170] Other Intangible Assets, Rights of Use and Property, Plant and Equipment (Note 7) Movement in Intangible Assets, Rights of Use, PP&E (Thousands of Euros) | Item | 31/12/2024 Balance | Additions | Disposals | Translation Differences | 30/06/2025 Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Other intangible assets | 2,926,132 | 72,879 | (14,430) | (309,060) | 2,740,576 | | Rights of Use | 968,304 | 107,498 | (31,398) | (125,315) | 939,782 | | Property, plant and equipment | 3,341,846 | 123,543 | (23,060) | (426,383) | 3,096,578 | | Total | 7,236,282 | 303,920 | (68,888) | (860,758) | 6,776,936 | - Development costs in progress amounted to EUR 1,450,794 thousand as of June 30, 2025, including projects for neurodegenerative, neuromuscular, ophthalmological diseases, and plasma therapies (Fibrinogen and Trimodulin)[179] - Property, plant and equipment under construction totaled EUR 796,485 thousand, mainly for facility expansion in the United States, Canada, and Ireland[180] Leases (Note 8) Lease Liabilities (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Non-current | 977,646 | 1,024,845 | | Current | 111,829 | 116,534 | | Total lease liabilities | 1,089,475 | 1,141,379 | Right-of-Use Depreciation (Thousands of Euros) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Buildings | 38,554 | 37,206 | | Machinery | 746 | 809 | | Computer equipment | 332 | 259 | | Vehicles | 2,706 | 2,520 | | Total | 42,338 | 40,794 | - Total lease payments made in H1 2025 amounted to EUR 61,083 thousand, up from EUR 52,601 thousand in H1 2024[184] Equity-Accounted Investees and Joint Business (Note 9) Investments in Equity-Accounted Investees (Thousands of Euros) | Item | 2025 | | :--- | :--- | | Balance at January 1 | 68,996 | | Contributions | 20,224 | | Share of profit / (losses) | (5,797) | | Share of other comprehensive income / translation differences | (5,916) | | Balance at June 30 | 77,507 | - Made a capital contribution of USD 22,050 thousand to Grifols Egypt for Plasma Derivatives (S.A.E.) in H1 2025, maintaining a 49% stake[188] Financial Assets (Note 10) Non-Current Financial Assets (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Non-current financial assets measured at fair value | 362,796 | 423,439 | | Non-current financial assets at amortized cost | 60,699 | 67,053 | | Total | 423,495 | 490,492 | Current Financial Assets (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Current financial assets measured at fair value | 8,418 | 6,064 | | Current financial assets at amortized cost | 254,958 | 237,510 | | Total | 263,376 | 243,574 | - Investment in SRAAS shares (6.58% interest) is measured at fair value through OCI, with a fair value of EUR 357,588 thousand at June 30, 2025, recognizing a loss of EUR 58,542 thousand net of tax[191] Trade and Other Receivables (Note 11) - Grifols Group sold receivables without recourse to financial institutions, transferring risks and benefits[195] - The finance cost of receivables sold amounted to EUR 6,114 thousand for H1 2025, a decrease from EUR 13,685 thousand in H1 2024[196] - Volume of gross invoices sold without recourse not collected as of June 30, 2025, totaled EUR 428,351 thousand[197] Cash and Cash Equivalents (Note 12) Cash and Cash Equivalents (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Short term deposits | 45,864 | 5,100 | | Cash in hand and at banks | 512,827 | 974,680 | | Total cash and cash equivalents | 558,691 | 979,780 | - Total cash and cash equivalents decreased from EUR 979,780 thousand at December 31, 2024, to EUR 558,691 thousand at June 30, 2025[198] Equity (Note 13) - Share capital consists of 426,129,798 Class A ordinary shares (EUR 0.25 par value) and 261,425,110 Class B non-voting preference shares (EUR 0.05 par value)[204] - Treasury stock movement in H1 2025 included the disposal of 100,000 Class A shares (EUR 2,280 thousand) to an ex-employee under the Stock Incentive Plan 2025[206] - Non-controlling interests decreased from EUR 2,723,298 thousand at December 31, 2024, to EUR 2,429,075 thousand at June 30, 2025, primarily due to the Biotest AG acquisition[210] Financial Liabilities (Note 14) Financial Liabilities (Thousands of Euros) | Item | 30/06/2025 | 31/12/2024 | | :--- | :--- | :--- | | Total non-current financial liabilities | 9,117,632 | 9,490,644 | | Total current financial liabilities | 522,103 | 676,087 | | Total Financial Liabilities | 9,639,735 | 10,166,731 | Senior Notes Principal + Interest Payable (Thousands of Euros) | Maturity | Senior Unsecured Notes | Senior Secured Notes | | :--- | :--- | :--- | | 2025 | 41,411 | 103,383 | | 2026 | 82,823 | 206,766 | | 2027 | 82,823 | 946,375 | | 2028 | 2,084,359 | 190,125 | | 2029 | - | 190,125 | | 2030 | - | 2,695,063 | | Total | 2,291,416 | 4,331,837 | - Revolving Credit Facility (RCF) increased to USD 1,353 million until November 2025, and USD 983 million until May 2027[218] Expenses by Nature (Note 15) Amortization/Depreciation Expenses by Function (Thousands of Euros) | Function | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of sales | 138,773 | 124,166 | | Research and development | 27,459 | 40,140 | | Selling, general & administration expenses | 52,553 | 55,096 | | Total | 218,785 | 219,402 | Personal Expenses by Function (Thousands of Euros) | Function | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of sales | 730,986 | 685,317 | | Research and development | 97,571 | 91,632 | | Selling, general & administration expenses | 268,633 | 253,675 | | Total | 1,097,190 | 1,030,624 | Finance Result (Note 16) Finance Result Breakdown (Thousands of Euros) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Finance income | 20,170 | 26,361 | | Finance costs | (313,363) | (395,203) | | Financial cost of sale of trade receivables | (6,114) | (13,685) | | Change in fair value of financial instruments | 39,183 | (4,125) | | Exchange differences | (51,816) | (2,047) | | Finance Result | (311,940) | (389,089) | - Finance result improved from a loss of EUR 389,089 thousand in H1 2024 to a loss of EUR 311,940 thousand in H1 2025[227] Taxation (Note 17) - Group's consolidated effective tax rate is 27% for H1 2025 (excluding Biotest), up from 25% in H1 2024[228] - Undergoing various tax audits in Spain and the U.S. (IRS review of cross-border transactions)[229][232] - Recorded a net provision of EUR 21.062 million in H1 2025 to cover potential liabilities related to uncertain tax treatments[232] - Does not expect significant economic impacts from OECD Pillar 2 reforms (global minimum taxation) due to effective tax rates above 15% and expected benefit from 'transitional safe harbour'[233][234] Discontinued Operations (Note 18) - The Group has not discontinued any operations during the six-month periods ended June 30, 2025, and June 30, 2024[237] Commitments and Contingencies (Note 19) - Grifols acts as a guarantor for two lease contracts for ImmunoTek plasma centers and the Promissory Note for Group 4 Centers acquisition[238] - Maintains equity-settled and cash-settled share-based payment plans for executives and employees, with specific vesting conditions and settlement dates[242][246] - Has a purchase option to repurchase shares of BPC Plasma Inc. and Haema GmbH from Scranton Plasma B.V., with the exercise price based on sale price plus expenses and working capital changes[255][257] - Committed to supplying Canadian Blood Services with 2.4 million grains of Immunoglobulin exclusively through Canadian plasma centers by July 2026, requiring 600,000 liters of Canadian plasma annually[263] Financial Instruments (Note 20) Financial Assets by Fair Value Hierarchy (Thousands of Euros, 30/06/2025) | Category | Carrying amount | Fair Value (Level 1) | Fair Value (Level 2) | Fair Value (Level 3) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at FVTPL | 5,070 | - | - | - | | Financial assets at FV through OCI | 743,932 | 357,588 | 386,344 | - | | Hedges | 8,418 | - | 8,418 | - | | Financial assets measured at amortized cost | 1,366,211 | - | - | - | Financial Liabilities by Fair Value Hierarchy (Thousands of Euros, 30/06/2025) | Category | Carrying amount | Fair Value (Level 1) | Fair Value (Level 2) | Fair Value (Level 3) | | :--- | :--- | :--- | :--- | :--- | | Derivatives instruments | (2,340) | - | (2,340) | - | | Senior Unsecured & Secured Notes | (5,303,788) | (5,345,660) | - | - | | Senior secured debt | (2,141,133) | - | (2,196,147) | - | | Financial liabilities measured at amortized cost | (10,732,375) | - | - | - | - The Group holds various foreign exchange rate forward contracts and an Energy PPA as financial derivatives, with varying notional amounts and maturities[274] Transactions with Related Parties (Note 21) Group Balances with Related Parties (Thousands of Euros, 30/06/2025) | Item | Associates | Key management personnel | Other related parties | Board of directors | | :--- | :--- | :--- | :--- | :--- | | Receivables | 48,338 | - | - | - | | Other financial assets | 418 | - | - | - | | Loans | - | - | 230,014 | 111 | | Guarantee deposits | 11 | - | 943 | - | | Total debtors | 48,756 | 151 | 230,957 | 111 | | Total creditors | - | (288) | (15,274) | (3) | Group Transactions with Related Parties (Thousands of Euros, H1 2025) | Item | Associates | Key management personnel | Other related parties | Board of directors | | :--- | :--- | :--- | :--- | :--- | | Net sales | 19,363 | - | 1,185 | - | | Purchases | - | - | (76) | - | | Rendering of services | - | 1 | (7,405) | - | | Remuneration | - | (7,624) | - | (2,460) | | Payments for rights of use | - | - | (3,593) | - | | Finance income | - | - | 8,568 | - | | Loans | - | - | 23,988 | - | - Loans to related parties include EUR 120,483 thousand from Scranton Enterprises B.V. and cash-pooling financing with BPC Plasma Inc. and Haema GmbH[276][277] Subsequent Events (Note 22) - On July 15, 2025, Haema GmbH formalized a dividend distribution of EUR 74,450 thousand to Scranton Plasma B.V., which will offset the open cash-pooling balance[284] - The One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. on July 4, 2025, with Grifols currently assessing its impact on consolidated financial statements[285] Consolidated Director's Report (Management Discussion & Analysis) This report provides management's discussion and analysis of Grifols' performance for the first half of 2025, detailing revenue evolution, plasma supply management, financial results, balance sheet changes, cash flows, corporate transactions, governance updates, strategic agreements, innovation, and ESG initiatives Business Overview and Value Creation Plan - H1 2025 performance reflects continued progress on growth, profitability, cash flow generation, and deleveraging, driven by the Value Creation Plan[288] - Plan execution leverages commercial growth, margin expansion, and pipeline execution, supported by plasma supply, industrial network, and innovation[288] Revenue Evolution by Business Unit H1 2025 Revenue by Business Unit (EUR million) | Business Unit | H1 2025 | Growth (cc) | | :--- | :--- | :--- | | Total | 3,677 | +7.0% | | Biopharma | 3,154 | +8.2% | | Diagnostic | 332 | +2.8% | | Bio Supplies | 69 | -31.8% | - Biopharma revenue growth was fueled by robust immunoglobulin sales (+12.5% cc), especially SCIG Xembify® (+66.3% cc)[291] - Diagnostic revenues increased due to Blood Typing Solutions (+7.1% cc) across key countries[294] Plasma Supply and Cost Management - Grifols continues to efficiently manage plasma supply and reduce cost per liter (CPL), leading to significant profit margin increases[298] - Individualized nomogram implemented at 60% in U.S. centers, aiming for 100% adoption by 2026, resulting in higher IVIG manufacturing yield[299] - Operates the world's largest private plasma supply network, with approximately one quarter of donor centers outside the U.S., including recent expansion in Egypt and Canada[300] Financial Performance Summary H1 2025 Financial Performance Summary | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross margin | 39.1% | 37.8% | | Adjusted EBITDA | EUR 876 million | EUR 791 million | | Adjusted EBITDA margin | 23.8% | 23.0% | | Financial result | EUR 312 million loss | EUR 389 million loss | | Reported net income | EUR 177 million | EUR 36 million | - Sequential margin expansion observed, with Q2 Adjusted EBITDA at EUR 475 million (25.1% margin) compared to Q1 at EUR 400 million (22.4% margin)[302] Balance Sheet and Working Capital Balance Sheet Highlights (EUR million) | Item | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Total assets | 19,767 | 21,405 | | Inventories | 3,347 | 3,560 | | Working capital consumption | -260 | - | | Debt ratio (Credit Agreement) | 4.2x | 4.6x | | Shareholder equity | 5,260 | - | - Inventory turnover improved to 272 days (from 294 days in Dec 2024) due to improved cost per liter of plasma[305] - Deleveraging remains a core priority, with the debt ratio falling to 4.2x from 4.6x in Dec 2024[306] Cash Flows and Capital Resources H1 2025 Cash Flow Summary (EUR million) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Operating activities | 291 | 88 | | Investing activities | -305 | 1,261 | | Financing activities | -315 | 225 | | Net financial debt (excluding IFRS 16) | 7,992 | - | | Net financial debt to EBITDA ratio | 4.2x | 4.6x (Dec 2024) | - Cash flow generation showed sequential improvement, driven by active working capital management and financial discipline in CAPEX[309] - Capital expenditures (CAPEX) focused on Biopharma's new production facilities, including plasma fractionation, immunoglobulin purification, and albumin plants[311][315] Corporate Transactions and Acquisitions - Successfully completed the delisting of German subsidiary Biotest AG, increasing stake to 80.32% (99.25% voting rights, 61.40% preferred shares) for EUR 108 million[317] - Acquired Group 3 (8 centers) and Group 4 (6 centers) plasma collection centers from Immunotek in the U.S. for approximately USD 78,888 thousand and USD 62,428 thousand respectively, gaining full control of 28 centers[319] Corporate Governance Updates - Appointed Montse Ribas as Chief Communications and Reputation Officer to strengthen global reputation[321] - Anne-Catherine Berner appointed as the new non-executive Chair of Grifols after the 2025 Annual Shareholders' Meeting[322] Strategic Agreements and Partnerships - Collaborating with FcR Therapeutics to develop recombinant nanobodies for autoimmune diseases[323] - Partnered with Inpeco to provide transfusion medicine labs with complete automation solutions for the 'lab of the future'[325] - Strategic partnership with IBL International GmbH to develop advanced biomarker panels for clinical diagnostics[326] Innovation and R&D Progress - Submitted Biologics License Application (BLA) for new fibrinogen treatment to U.S. FDA; European launch expected H2 2025, U.S. H1 2026[327] - Received a grant from The Michael J. Fox Foundation for Parkinson's Research to identify plasma-based biomarkers for early Parkinson's disease detection[328] - Completed enrollment of second cohort in Phase 1/2 study for Alpha-1 15% subcutaneous option for alpha-1 antitrypsin deficiency[329] - FDA cleared IND application for Phase 2 trial of immunoglobulin drops (GRF312 Ophthalmic Solution) for dry eye disease[330] Other Information (Treasury Stock, Risks, Outlook) - As of June 30, 2025, Class A treasury shares totaled 3,944,430 and Class B treasury shares amounted to 3,844,430 shares[333] - Identified new risk factors: potential tariffs on certain products and regulatory changes in the U.S. affecting medical product pricing[333][339] - Foreseeable evolution: continued execution of Strategic Plan focused on profitable growth, profitability improvement, cash flow generation, and disciplined capital allocation[335] Environment, Social, and Governance (ESG) Issues - Promoting sustainability is a cornerstone of Grifols' long-term business model, with a focus on ESG practices[336] - Key environmental initiatives include designing a decarbonization plan (2030/2050 horizon), supplier assessment for Scope 3 target, ISO 14001 recertification, and 'Zero Waste to Landfill' validation[337][340] Annex - Alternative Performance Measures (APM) Definitions and Reconciliations - Provides definitions and purpose for APMs like Revenue at constant currency, EBITDA, EBITDA adjusted, Net financial debt as per Credit Agreement, and Leverage ratio[344][345][347][349] - EBITDA adjusted excludes non-recurring items such as restructuring costs, transaction costs, impairments, and Biotest Next Level project costs to reflect organic performance[345][346] H1 2025 Net Revenues by Division at Constant Currency (Thousands of Euros) | Business Unit | 2025 (cc) | 2024 | | :--- | :--- | :--- | | Total Net Revenues | 3,683,505 | 3,443,613 | | Biopharma Net Revenues | 3,160,798 | 2,922,355 | | Diagnostic Net Revenues | 331,579 | 322,544 | | Bio Supplies Net Revenues | 68,652 | 100,731 | | Others & Intersegments Net Revenues | 127,476 | 97,983 | Signatures This section confirms the official signing of the Form 6-K report by an authorized signatory of Grifols, S.A., as required by the Securities Exchange Act of 1934 Authorized Signatures This section confirms the official signing of the Form 6-K report by an authorized signatory of Grifols, S.A., as required by the Securities Exchange Act of 1934 - Report duly signed on behalf of Grifols, S.A. by David I. Bell, Authorized Signatory, on July 30, 2025[360][362]