ALKALOID with consolidated sales growth of 14 percent, net profit of 22.5 million euros, and investments of 16.5 million euros

The total consolidated sales of ALKALOID AD Skopje in the period from January to September 2024 reached 231.3 million euros, which is 14 percent higher compared to the same period last year.

Consolidated sales achieved in the domestic market increased by 20 percent, while the total consolidated export of the company grew by 12 percent. Of the total consolidated sales, 32 percent was achieved in North Macedonia, while, on the other hand, 68 percent was achieved in foreign markets. Looking by regions, 27 percent was achieved in Southeast European countries, 21 percent in Western European countries (EU and EFTA), 19 percent in Eastern European countries (CIS, UKR…), and the remaining markets accounted for 1 percent of total consolidated sales.

The largest increase in export markets compared to last year was recorded in sales achieved in Cyprus, which increased 36 times; followed by Georgia where sales increased 2.5 times, the United Kingdom where they increased 2.4 times, and in Lithuania where sales doubled. Following are those in Ukraine (growth of 80 percent), Chile (growth of 78 percent), Jordan (growth of 27 percent), Armenia (growth of 19 percent), Albania (growth of 18 percent), the United States (growth of 16 percent), in Croatia (14 percent growth), Bosnia and Herzegovina (11 percent growth), Montenegro (10 percent growth), Slovenia (9 percent growth), etc.

When viewed by product groups, the largest share in the structure of total consolidated sales comes from the pharmaceutical segment, specifically 90 percent, while the chemistry, cosmetics, and medicinal herbs segment contributes 10 percent. Among pharmaceutical products, antibiotics account for a larger share of total sales with 27 percent, OTC preparations with 18 percent, neurological preparations with 12 percent, and cardiological preparations with 11 percent of total consolidated sales, etc.

In 2024, in the direction of commitment to continuous modernization and expansion of production capacities, production volume, and assortment, ALKALOID AD Skopje completed the realization of its largest investment project in the last two decades – a new facility for the production of solid pharmaceutical forms, Tablet Department 2.0, and the accompanying technical space. The new technical-technological capacity, aimed at more than doubling the volume and greater flexibility in the production of solid pharmaceutical forms, spans an area of 6,200 m2 (production-technical space), and ALKALOID invested a total of 19.4 million euros for this.

In the first half of this year, strategic investments were also made in PC Cosmetics. A new production line for the production and packaging of wet wipes worth 1.7 million euros was installed. The new production equipment for the production of wet wipes has a capacity of 120 pcs/minute and is complemented by fully automated packaging lines. This has enabled the doubling of capacity for the production of wet wipes and the expansion of the range of products that can be produced and packaged.

Total investments in fixed assets in the period from January to September 2024 amount to 16.5 million euros.

ALKALOID AD Skopje, as an international generic pharmaceutical company, aims to be present in all segments of this business and offer health systems and patients access to the largest possible portfolio and types of medicines at affordable prices. In addition to the usual generic medicines, ALKALOID AD Skopje has a strategic goal of entering the market with biosimilar medicines. To timely enter this growing segment of the pharmaceutical industry, ALKALOID AD has invested in the South Korean research and development company Rophibio through the recapitalization of its newly formed company ALKALOID FARMA INTERNATIONAL from Croatia by purchasing a minority stake. With this investment in South Korea, worth one million U.S. dollars, ALKALOID AD will, in addition to ownership in the company, also gain priority rights in licensing products for the regions in which it operates. Considering the market potential, as well as the experience of the team leading the company Rophibio, ALKALOID AD made the decision to invest in this research and development company, which is currently in an advanced stage of developing biosimilar medicines.

In recent years, ALKALOID has begun the process of redesigning existing generic pharmaceutical products for new indications, with the aim of creating value-added medicines that enable treatment and meet the needs of individuals or specific groups of patients. Strategic investments in modernizing the product portfolio have led to the successful development of the first patented value-added medicine of ALKALOID, primarily intended for the treatment of reflux esophagitis and gastroesophageal reflux disease (GERD). First-choice medicines for treating reflux esophagitis and GERD are so-called proton pump inhibitors, a group that includes Omeprazole, which is usually available in the form of gastro-resistant tablets and capsules, as well as a powder for dissolution. ALKALOID has developed for the first time in history a liquid form of Omeprazole ready for use.

For the oral solution of Omeprazole, ALKALOID received the first international patent for a value-added medicine (Value Added Medicine – VAM), and the first approvals for placing this innovative medicine on the market have already been issued for the Macedonian market, as well as for the markets of the United Kingdom, Ireland, the Netherlands, Portugal, Hungary, Romania, Slovenia, Croatia, Bulgaria, and Kosovo. Registration procedures for other countries in Europe and for the markets of the European Union are underway, and approvals for placing the medicine on the market and its subsequent launch are also expected.

The consolidated profit before financial costs, taxes, and depreciation (EBITDA) exceeded 38 million euros and recorded a growth of 5 percent, while the consolidated net profit of 22.5 million euros increased by 7 percent.

ALKALOID Group has 3,023 employees, of which 2,298 are in North Macedonia, and 725 are employed in capital-related companies abroad.

The price of ALKALOID AD Skopje shares on the official market of the Macedonian Stock Exchange during the period from January to September 2024 ranged from 295 to 369 euros or an average of 337 euros per share. On September 30, 2024, the company’s market capitalization amounted to 519 million euros.

The shareholders’ assembly of ALKALOID AD Skopje on April 1, 2024, made a decision on the payment of dividends for 2023 in the amount of 8.78 EUR gross or 7.90 EUR net per share, which compared to the dividend paid per share for the previous year of 7.97 euros gross, or 7.17 euros net, is an increase of 10.2 percent. For the payment of dividends and personal income tax, the company allocated about 12.6 million euros.

ALKALOID’s management expects that the company will continue on the path of continuous growth based on opportunities from current investments in new production facilities and equipment and from investments in research and development projects, thereby creating a competitive portfolio and market expansion opportunities. To achieve these goals, we will continue with new hiring, along with continuous investment in raising and improving the level of knowledge and skills of employees and building talents. According to previous results, with unchanged market conditions in which ALKALOID operates, it is estimated that the planned consolidated sales for 2024 will be exceeded and that for the first time an amount greater than 300 million euros will be achieved.