The CNMV report addresses in detail the Grifols operations questioned by Gotham City Research: BPC Plasma and Haema, Inmunotek, GDS, and the loans with Scranton. Despite endorsing the accounts, the regulator points to several individual deficiencies that together can be considered serious.
Conclusions
Guarantee with deficiencies
The CNMV has not found significant errors in the magnitudes of the financial statements nor that it can be concluded that the debt is not correctly reflected. On the other hand, it points out that there are deficiencies that as a whole must be considered significant, to the extent that in some years they have hindered investors’ ability to evaluate the company.
Haema and PCB Plasma
Consolidation
The regulator considers that the criteria for consolidating Haema and BPC Plasma in accordance with the IFRS regulations are reasonable. However, he deplores the fact that the reasoning was omitted to conclude that the multinational had control of both companies. He also considers that information is missing since participations are considered non-significant.
Immunotec
Financial investment
The document indicates that this operation should have been registered as a joint operation instead of as a financial investment. It also points out that the information provided in the 2020 and 2021 reports was not sufficient to know the risks and benefits that it was assuming with this agreement.
GDS
Attributable result
It also points out that the criteria followed to determine the percentage of effective allocation of Grifols Diagnostic Solutions (GDS) results attributable to Shanghai Raas are not reflected.
Scranton
Loans and cash pooling
In the requested information, Grifols acknowledges that it did not include several loans and cash poolings with Scranton as related transactions. He also loans with president Thomas Glanzmann and other investment companies.
Ebitda
More detail
The regulator distorts the use of adjusted EBITDA without excluding the results attributable to non-controlled interests when explaining the financial leverage ratio. Furthermore, Grifols also does not publish the information necessary for investors to calculate this indicator.
Next steps
No reformulation
The CNMV assures that the books should not be reformulated, but asks to restate the profit and loss account for 2022 and 2023 due to the review of the Inmunotek operation. However, it also requests the publication within 15 days of the required details of the ebitda and net financial debts.
