(Reuters) – Spanish pharmaceutical firm Grifols shares climbed 8% on Thursday, a day after the company announced plans to lay off around 2,300 employees, or 8.5% of its global workforce, to save 400 million euros ($427.72 million) annually.
Grifols, which uses blood plasma to make medicines, has struggled to recover from the impact of the pandemic when many countries halted blood collection.
“The company has been forced to make adjustments in its structure, mainly to save costs after a rather complicated and tough last few years”, IG analyst Diego Morin told Reuters.
Grifols led the Spanish blue-chip index Ibex-35, with its gains of 8% to 14.66 euros.
Including Thursday’s gains so far, the share is up around 36% this year, recovering from losing almost 55% of its value in 2021 and 2022, Refinitiv data shows.
Grifols reported a 30% drop in nine-month net profit following asset acquisitions, even though revenues and plasma collection rose.
Morin said the company had improved, but high leverage was an issue.
“Debt reduction continues to be one of the group’s main objectives for the year 2024,” he said.
Grifols expects to reduce its net debt to 7.9 times earnings before interest, taxes, depreciation and amortisation (EBITDA) by the end of the year.
In September, its net debt was 9.4 billion euros in September, or 8.6 times its EBITDA, down from 9 times EBITDA at the end of June.
Grifols will report its 2022 results on Feb. 28.
($1 = 0.9352 euros)
(Reporting by Matteo Allievi; Editing by Emma Pinedo and Barbara Lewis)
