Business results in the first nine months

ALKALOID: Business results in the first nine months

ALKALOID with consolidated sales growth of 14% in the value of 231.3 million euros, consolidated net profit of 22.5 million euros and investments of 16.5 million euros in the period January-September 2024.

The total consolidated sales of ALKALOID AD Skopje in the period January-September 2024 reached 231.3 million euros, which is 14% more compared to the same period last year.

The consolidated turnover achieved on the domestic market increased by 20%, and the total consolidated export of the company increased by 12%. Of the total consolidated sales, 32% was realized in North Macedonia, while, on the other hand, 68% was realized on foreign markets. Looking at regions, 27% was realized in the countries of Southeast Europe, 21% was realized in the countries of Western Europe (EU and EFTA), 19% was realized in the countries of Eastern Europe (CIS, UKR…), and in other markets 1% of the total consolidated sales.

The biggest growth in export markets, compared to last year, was recorded in sales in Cyprus, which increased 36 times; then in Georgia, where it increased 2.5 times, in Great Britain, where it increased 2.4 times, as well as in Lithuania, where sales doubled. This is followed by sales in Ukraine (80% growth), Chile (78% growth), Jordan (27% growth), Armenia (19% growth), Albania (18% growth), the United States (16% growth), in Croatia (14% growth), Bosnia and Herzegovina (11% growth), Montenegro (10% growth), Slovenia (9% growth), etc.

Observed by product groups, products from the segment have the largest share in the structure of total consolidated sales pharmacyor 90%, while the segment chemistry, cosmetics and medicinal herbs participates with 10%. Of the pharmaceutical products, antibiotics with 27%, OTC preparations with 18%, neurological preparations with 12%, cardiology preparations with 11% of the total consolidated sales, etc., have a larger share in the total sales.

In 2024, as part of its commitment to constant modernization and expansion of production capacities, production volume and assortment, ALKALOID AD Skopje completed the realization of its largest investment undertaking in the last two decades – a new plant for the production of solid pharmaceutical forms, Tablet Department 2.0 and accompanying technical premises . The new technical-technological capacity, whose goals are to more than double the volume and to achieve greater flexibility in the production of solid pharmaceutical forms, occupies an area of ​​6,200 m² (production and technical space), and ALKALOID invested a total of 19.4 million euros in this capacity.

In the first half of this year, a strategic investment in PC Kosmetika was realized. A new production line for the production and packaging of wet wipes, worth 1.7 million euros, was installed. The new production equipment for the production of wet wipes has a capacity of 120 pieces per minute and is complemented by fully automated packaging lines. In this way, it was possible to double the capacity for the production of wet wipes and expand the range of products that can be produced and packaged.

Total investments in fixed assets in the period January – September 2024 amount to 16.5 million euros.

ALKALOID AD Skopje, as an international generic pharmaceutical company, aspires to be present in all segments of this business and to offer healthcare systems and patients access to the largest possible portfolio and types of drugs, at an affordable price. In addition to the usual generic drugs, ALKALOID AD Skopje has a strategic goal to enter the market of biosimilar drugs. In order to be on time in this growing business segment in the pharmaceutical industry, ALKALOID AD invested in the South Korean research and development company Rophibio through the recapitalization of its newly formed company ALKALOID FARMA INTERNACIONAL from Croatia, by purchasing a minority stake. With this investment in South Korea, worth one million US dollars, ALKALOID AD will, in addition to the ownership stake in the company, also receive the right of priority in product licensing for the regions in which it operates. Bearing in mind the potential of the market, as well as the experience of the team leading the Rophibio company, ALKALOID AD made the decision to invest in this research and development company, which is currently in an advanced stage of development of biosimilar drugs.

In recent years, ALKALOID has begun the process of redesigning existing generic pharmaceutical products for new indications, with the aim of creating drugs with added value that enable treatment and satisfaction of the needs of individual or specific groups of patients. Strategic investments in the modernization of the product portfolio led to the successful development of ALKALOID’s first patented drug with added value, intended primarily for the treatment of reflux esophagitis and gastroesophageal reflux disease (GERD). The drugs of first choice in the treatment of reflux esophagitis and GERD are the so-called proton pump inhibitors, a group that includes omeprazole, which are usually available in the form of gastro-resistant tablets and capsules, as well as powders for dissolution. For the first time in history, ALKALOID has developed a ready-to-use liquid form of Omeprazole.

Omeprazole ALKALOID oral solution received the first international patent for a value-added drug (VAM), and the first market approvals for this innovative drug have already been granted for the Macedonian market, as well as for the markets of the United Kingdom, Ireland, the Netherlands, as well as in Portugal, Hungary, Romania, Slovenia, Croatia, Bulgaria and Kosovo. Registration procedures for other countries in Europe and for the markets of the European Union are ongoing, and it is expected to receive approval for the release of the drug into the market and its subsequent launch.

Consolidated profit before financial expenses, taxes and depreciation (EBITDA) exceeded 38 million euros and recorded a growth of 5%, while consolidated net profit in the amount of 22.5 million euros increased by 7%.

ALKALOID Group has 3,023 employees, of which 2,298 are in North Macedonia, and 725 are employed in capital companies abroad.

The price of ALKALOID AD Skopje shares on the official market of the Macedonian Stock Exchange in the period January-September 2024 ranged from 295 to 369 euros, or an average of 337 euros for one share. On September 30, 2024, the market capitalization of the company was 519 million euros.

On April 1, 2024, the Assembly of Shareholders of ALKALOID AD Skopje adopted a Decision on the payment of dividends for the year 2023 in the amount of 8.78 euros gross or 7.90 euros net per share, which, compared to the dividend paid per share for the previous year of 7.97 euros gross, ie 7.17 euros net, up by 10.2%. The company allocated around 12.6 million euros for the payment of dividends and personal income tax.

ALKALOID’s management expects that in 2024 the company will continue on the path of continuous growth based on the opportunities of current investments in new production capacities and equipment and investments in development and research projects, thereby creating a competitive portfolio and opportunities for market expansion. To achieve these goals, we will continue with new recruitments, with continuous investment in raising and improving the level of knowledge and skills of employees and building talents. According to the results so far, with unchanged market conditions in which ALKALOID operates, it is estimated that the planned consolidated sales for 2024 will be exceeded and realized for the first time in the amount of over 300 million euros.