JGL achieved a profit of 77.3 million kuna

Jadran galenski laboratorij (JGL) group achieved a pre-tax profit of 77.3 million kuna in 2017, which is five percent higher compared to the previous business year, the company reported on Friday.

Thanks to a significant reduction in debt and sales growth in all key markets, the group’s total revenues amounted to 931.4 million kuna, representing a nine percent increase compared to 2016, JGL emphasizes.

– JGL group stabilized and improved its operational performance during 2017 and laid a solid foundation for further growth, the company states.

Key transaction

They also note that investments to strengthen the market position of the key brand Aqua Maris in Russia, inventory optimization, and a change in the business model due to a one-time restructuring cost had a direct impact on the reduction of profitability from operational activities.

– The business transaction of selling brands in Russia was crucial for financial restructuring and debt reduction, creating a buffer for the parent company to strategically focus on the respiratory and ophthalmological segments, for further investments in new markets, as well as the development of new products, emphasized the Chairman of the Management Board of JGL, Ivo Usmiani.

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He notes that the structure of sales realization of the JGL group, dominated by exports, confirms year after year that the chosen strategic direction of internationalization, and in certain segments globalization of business, has been key to the long-term sustainability of the business.

– Despite constant challenges and changes in the global pharmaceutical market that we successfully overcome, our acquired market positions are stable, Usmiani emphasized.

The business revenues of the JGL group last year amounted to 908.4 million kuna, which is an increase of almost 16 percent, with realized business revenues from core business reaching 738.5 million kuna.

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Sales revenues of products within the JGL group reached 728.3 million kuna, representing a 39 percent increase.

JGL d.d. continues to participate in the results with a significant share of 49 percent, followed by Jadran LLC Moscow with a 26 percent share, and the pharmacy chain Pablo with an 18 percent share in the sales of the JGL group.

In the parent company, sales revenue last year amounted to 453.7 million kuna, which is an increase of 30 percent compared to 2016, as stated in the announcement.

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According to the data presented, last year JGL d.d. successfully launched as many as 73 products in various international markets, of which 87 percent are products from its own development, and 117 first applications were prepared and submitted for registration, of which 94 received approvals.

At the end of last year, JGL changed its business model and entered a new business cycle with a simpler monistic management model. Mislav Vučić, a manager with extensive international experience in the pharmaceutical business, took the position of CEO of JGL on the last day of 2017, the report notes.

– Given that financial and natural growth was recorded in all markets where the group operates with its own operations during the reporting period, a continuation of the growth trend is expected in the 2018 business year, JGL emphasizes.