By Marta Serafinko
MADRID (Reuters) - Grifols shares soared on Thursday after the Spanish drugmaker upgraded its annual profit outlook following a strong quarter.
Grifols, which posted a third-quarter net profit of 60 million euros ($63.64 million) after a loss in the first half of the year, raised its 2023 guidance for adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to 1.45 billion euros, from a range of 1.40-1.45 billion previously.
Its shares were up 13.4% in mid-morning trading and were on track for their best day ever, while the local blue-chip index IBEX-35 was up 1.5%. The shares had lost 18% in the three months to Nov. 1.
Investors "were convinced by the results," Renta4's equity analyst Alvaro Aristegui said in an email. "Actually, they were better than what I expected."
The company, which uses blood plasma to make medicines, posted a nine-month net profit of 3.3 million euros, while its adjusted EBITDA reached 1.03 billion euros.
Grifols said it managed to cut the cost of collecting plasma by 22% as of September 2023 from its peak in July 2022 as the company reduced structural costs and the payments it makes to blood donors.
It said it expects to close the $1.5 billion sale of a stake in Shanghai RAAS in the first half of 2024. The deal was announced in July.
The confirmation of the deal contributed to the share price increase as there was "market concern" it might not achieve the sale by the end of this year, JPMorgan (NYSE:JPM) said in a note to investors.
($1 = 0.9435 euros)