Guilherme Sampaio

Guilherme Sampaio of CaixaBank inquired about the EBITDA guidance, noting the low-end implies minimal growth in H2 and asking if this was due to FX uncertainty. He also asked about the cash flow phasing between Q3 and Q4.

Answer

CFO Rahul Srinivasan confirmed that the conservative tone in the EBITDA guidance is primarily due to FX volatility, reiterating confidence in the underlying business by reaffirming guidance and raising the free cash flow outlook. He noted that while H2 cash flow is seasonally stronger, the company does not provide specific quarterly phasing but is confident in hitting its revised annual target.

Guilherme Sampaio asked for reconfirmation of the company's exposure to Medicare and Medicaid and requested more detail on the quarter-on-quarter increase in SG&A expenses.

Answer

President of Biopharma Roland Wandeler reiterated that Grifols does not provide specific Medicare/Medicaid breakouts but emphasized the significant commercial patient base and diverse mix across Part B and Part D. CFO Rahul Srinivasan attributed the SG&A increase to a Q4 2024 reclassification, the natural impact of rising revenue, and preparatory costs for the upcoming fibrinogen launch.

Guilherme Sampaio asked for an update on the U.S. Immunoglobulin (IG) market and Grifols' market share evolution. He also sought clarification on the Shanghai RAAS capital gain amount and the accounting treatment for its contribution to adjusted EBITDA.

Answer

Roland Wandeler, President of BioPharma, expressed encouragement with the momentum of both Xembify (subcu IG) and Gamunex (IVIG) in the U.S. without providing specific market share numbers. VP of IR Daniel Segarra explained the final capital gain on the Shanghai RAAS sale was lower than initial estimates after consolidation adjustments, and that the full EBITDA contribution was recognized in Q2 after the asset was sold.

Guilherme Sampaio from CaixaBank asked about the company's ideal midterm leverage target beyond the immediate goal of 4x. He also requested a reconciliation of the Q1 free cash flow with the reported increase in net debt, noting an increase in IFRS 16 liabilities.

Answer

CEO Nacho Abia opined that a reasonable midterm leverage level for a company like Grifols is between 3.0x and 3.5x, but the immediate priority is reaching the committed 4x target. VP of Investor Relations Daniel Segarra explained that the Q1 net debt increase was directly connected to the negative free cash flow, driven by nonrecurring working capital impacts that are expected to reverse and support the deleveraging path.