Charles

Charles asked about the market share evolution for Grifols' IG and Sub-Q products, and specifically inquired about the company's albumin market share performance in China.

Answer

President of Biopharma Roland Wandeler expressed satisfaction with IG market share gains, particularly in the U.S., and strong momentum for Sub-Q. Regarding China albumin, he noted pleasure with performance against competitors, attributing it to the strategic partnership with Shanghai RAAS, which positions Grifols well to compete and drive growth.

Charles from Barclays asked for an update on Grifols' market share evolution for both immunoglobulin (IG) and subcutaneous immunoglobulin (Sub-Q) products. He also inquired about the company's albumin market share specifically in China.

Answer

President of Biopharma Roland Wandeler expressed satisfaction with the progress in regaining IG market share, particularly in the U.S., and noted strong momentum and uptake for Sub-Q. Regarding albumin in China, he indicated that Grifols is pleased with its performance against competitors, attributing this to the strategic partnership with Shanghai RAAS, which positions the company well to compete effectively as the Chinese market stabilizes.

Charles asked for the rationale behind the cautious second-half outlook despite strong current orders, questioning if it was conservatism or signs of a slowdown. He also inquired about Mineral Fiber mix trends, the risk of trade-downs, and historical mix performance during downturns.

Answer

CEO Victor Grizzle explained that the second-half forecast is based on historical precedent where market uncertainty, such as that caused by tariffs, leads to a pause in discretionary renovation projects. He noted this is an experiential forecast, as current on-the-ground bidding activity remains steady. Grizzle also stated that the company is not seeing any signs of product trade-down; in fact, Q1 saw a positive mix, a trend that has persisted even through prior downturns, supported by innovation in higher-AUV products like TEMPLOK.

Charles, on for Uy Ear, asked about expectations for service revenues in 2025, the reason for negative service revenue in Q4 2024, and whether the projected growth for international Nuceiva sales is proportional or simply year-over-year.

Answer

CFO Sandra Beaver explained that service revenue is a stable, non-material stream from a single contract in Canada and is subject to timing variations. Regarding international Nuceiva sales, she confirmed they are expected to grow meaningfully faster than the U.S. business from a smaller base. She noted that international revenue was approximately 5% of total revenue in 2024 and expects that percentage to continue increasing.

An analyst identified as Charles asked about the strategy behind using share issuance for financing, the rationale for paying dividends in excess of shipping earnings, and the perceived reasons for the shipping industry's persistently low price-to-earnings multiples.

Answer

CEO Kristian Sørensen explained that the share issuance for the Avance Gas transaction was accretive, as it was done when the share price was near NAV. He clarified that the dividend was not in excess of total earnings, as it included a special payout from the profitable Product Services segment. He attributed low P/E multiples to earnings volatility, which BW LPG mitigates through time charters and diversification, and noted that current geopolitical risks also weigh on industry perception.

Charles from Mizuho asked for clarification on the patient enrollment target for the Reliance II study if the DMC recommends continuing without changes.

Answer

CEO Sergio Traversa responded that the planned number of patients is between 300 and 340. He noted that in such a scenario, the company would likely enroll a few percent more than the planned number to account for potential dropouts.