Grifols, S.A. (NASDAQ:GRFS) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET

Company Participants

Nuria Pascual - IR

Thomas Glanzmann - our Executive Chairman and CEO

Alfredo Arroyo - CFO

Victor Grifols Deu - COO

Conference Call Participants

Peter Verdult - Citi

James Gordon - JPMorgan

Jaime Escribano - Banco Santander

Thibault Boutherin - Morgan Stanley

Tom Jones - Berenberg

Guilherme Sampaio - CaixaBank

Alvaro Lenze - Alantra Equities

Joaquín García-Quirós - JB Capital

Nuria Pascual

Hello everyone, and welcome to the Grifols' Second Quarter 2023 Conference Call. Thank you very much for taking the time to join us today. This is Nuria Pascual, Investor Relations and Sustainability Officer. And I'm joined by Thomas Glanzmann, our Executive Chairman and CEO; Grifols CFO, Alfredo Arroyo; and Victor Grifols Deu, our Chief Operating Officer.

This call will last for about 60 minutes, there will be a presentation of approximately 30 minutes, followed by a Q&A session. [Operator Instructions] As a reminder, this call is being recorded and the materials for the call are on the investor relations website at grifols.com. The transcript and webcast replay of the call will also be available on the investor relations website within 24 hours after the end of the conference call.

Before we start, I draw your attention to the forward-looking statement disclaimer on Slide 2 in the slide deck of our release and forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date. And we undertake no obligation to update or revise any of the statements.

And now I would like to turn the call over to Thomas Glanzmann.

Thomas Glanzmann

Thank you, Nuria. Good afternoon and morning to all on the call. Thank you for joining us.

Today I'm very pleased to announce a second consecutive quarter of strong results for Grifols. We are not only delivering on our commitments, but accelerating these as a result of our turnaround strategy.

Although the first half of the year--all through the first half of the year we have excelled in execution, proved financial discipline and enhanced our performance culture. We advanced on all key priorities during this first half of 2023. Our operational performance continues to improve on a sequential basis.

We are reporting sustainable revenue growth driven by Biopharma which is supported by solid underlying demand, favorable pricing and product mix led by Xembify, which grew 26% in the first half of 2023. We have accelerated margin expansion, reaching an adjusted EBITDA margin of 22% plus for the first half mainly driven by our strong business performance and well executed operational improvement plan.