Grifols allocates Euros 218 million to dividends, with a compound annual growth rate of 16% over the last 4 years
- The shareholders endorse the management of the company and ratify all items on the agenda.
- The resolution to distribute Euros 218.2 million to dividends is approved, which represents Euros 0.316 gross per share: one already paid in December 2016 of Euros 0.18 gross per share and a second of Euros 0.1356 gross per share payable from June 1, 2017.
- The shareholders approve the re-election of Víctor Grífols Roura as a non-executive chairman of the Board of Directors.
- The co-CEOs have presented the 2016 Corporate Responsibility Report and provided an update on the company's strategy for the coming years.
Barcelona, May 26, 2017. Grifols (MCE: GRF, MCE: GRF.P and NASDAQ: GRFS), one of world's top three producers of plasma-derived medicines and a forerunner in the research and development of therapeutic alternatives that drive scientific and social advancements, celebrated its Ordinary General Shareholders Meeting at second call.
The meeting convened 757 shareholders, holders of 342,188,151 Class A shares that account for 80.3% of the company's voting rights. The votes delegated to the Board represented 73.5% of share capital, confirming the shareholders' support of the Group's management and business plan.
In 2016, Grifols fulfilled its strategic objectives, which guide the company's overall course of action. In this regard, the company made important inroads to support the long-term, sustainable growth of the Group, with revenues exceeding for the first time Euros 4,000 million and increasing net profits by 2.5% to exceed Euros 545 million.
The company also initiated the 2016-2020 capital investment plan (CAPEX) to improve and expand the production capacity of its three divisions, including plasma supply. Euros 1,200 million have been allocated to these investments, that are progressing according to the plan.
Grifols strengthened its global leadership position in the transfusion diagnostics sector with the acquisition of Hologic's share in the NAT (Nucleic Acid Testing) donor-screening unit.
After the close of the fiscal year, Grifols optimized its financial structure by successfully completing the refinancing of its debt. As a result, the average cost of debt decreased by 120 basis points to fall below 3.0% and average maturity exceeds 7 years.
In the last six years, the workforce has doubled to 14,877 employees. Of these, at the close of 2016, 23% were in Spain where the increase in the year was +5.3% to 3,430 employees.
During the Annual General Meeting, Raimon Grífols Roura, Grifols' co-CEO has presented the corporate responsibility report for 2016. This report includes information relevant to the company's stakeholders in relation to the activities that the group performs beyond its economic activity.
R+D+i investments exceed Euros 294 million in 2016
Grifols' longstanding commitment to research, development and innovation goes beyond internal resources. In recent years, Grifols has developed a comprehensive approach through internal investments in its own projects and external investments in investee companies like Albajuna, Alkahest, Araclon, Aradigm, Grifols Kiro Robotics and Singulex. This approach also comprises on-going collaborations in scientific and research fields.
In 2016, Grifols grouped all these external investments through Grifols Innovation and New Technology (GIANT), which is responsible for its management and aims to accelerate the development and commercialization of innovative therapies, products and services.
Taking into account internal and external investments as well as the acquisition of equity stakes in research companies, Grifols allocated Euros 294.3 million toward R+D+I initiatives. This represents 7.3% of net income in 2016 and a 7.2% increase over investments in 2015, which totaled Euros 274.5 million and accounted for 7.0% of the Group's annual revenues. Of this figure, internal investment amounted to Euros 220 million in 2016.
Grifols will distribute 40% of the Group's consolidated net profit to its shareholders
Grifols shareholders approved a total dividend payout of Euros 0.316 gross per share against the 2016 profits in two payments. The final ordinary dividend of Euros 0.1356 gross per share, along with the interim dividend of Euros 0.18 gross per share paid in December 2016, amount to Euros 218.2 million allocated to dividends in 2016. This total includes the preferred dividend of Euros 0.01 gross per share associated with each Class B share.
The company maintains its payout of 40% of the Group's consolidated net profits, honoring its commitment to generate value for its shareholders.
This new dividend will be payable1 from June 1, 2017 onwards.
Approval of agenda items
Key agenda items ratified by the shareholders include:
- Approval of the individual and consolidated annual accounts.
- Appointment and re-election of auditors.
- Re-election of Víctor Grífols Roura and Ramón Riera Roca as members of the Board of Directors.
- Approval of the Annual report on Directors' remuneration, on a consultative basis, as well as the Remunerations policy for the company Directors for future years.
- Various modifications to the Articles of Association to align its content and reflect new legislative changes introduced by the Spanish Company's Act with regard to the issuance of bonds and other obligations related to the Audit Committee, as well as the amendments of the Internal Regulations of the company's Board of Directors.
- Renewal of the delegation of power to request the possible listing of Class A shares on the NASDAQ exchange under the same conditions as those presented in May 2014.
1Through Iberclear and its participating entities, with BBVA acting as the payment agent
Grifols allocates Euros 218 million to dividends, with a compound annual growth rate of 16% over the last 4 years Download (41.94 Kb)