CNMV sees "relevant deficiencies" in Grifols' accounts but does not see a need to reformulate them

Grifols emphasizes that the supervisor has not found evidence of debt and is committed to improving transparency

The National Securities and Markets Commission (CNMV) reported this Thursday that it has found "relevant deficiencies" in Grifols' annual accounts, specifically in the detail and accuracy of the breakdowns and explanatory notes that support the figures.

However, the regulatory body has noted that it has not identified "significant errors" in Grifols' annual accounts, which is why W does not currently identify the need to carry out any reformulation of its financial statements.

Regarding these deficiencies, the supervisory body has referred to the financial information in some years of the period analyzed and in the presentation of alternative performance measures (APM), in particular the gross operating result (Ebitda). and the debt/Ebitda ratio.

At the same time, the CNMV has indicated that it has not found evidence that allows it to conclude that the financial debt reflected by Grifols does not correspond to reality.

"These deficiencies, although complex to assess individually and separately, as a whole must be considered significant, to the extent that in some years they have hindered the ability of investors to adequately understand the financial situation, results and cash flows of the issuer. ", the organization has assessed.

The most relevant deficiency consists, in the opinion of the CNMV, in the use of adjusted Ebitda without excluding the results attributable to non-controlled interests when explaining the financial leverage ratio of the Grifols group and its financial capacity to satisfy the debt. .

As he has pointed out, this is not in accordance with the legal obligations to reflect "useful, relevant, objective and neutral" information. Additionally, Grifols did not publish the necessary information so that investors could calculate Ebitda excluding said results attributable to non-controlled interests.

Despite these deficiencies, the CNMV has stressed that it does not currently identify the need to carry out any reformulation of Grifols' accounts. Likewise, there is no need to proceed with a restatement, with the exception of the possible impact of the review of the Inmunotek operation, when the analysis of this point is concluded.

However, it has required Grifols to include, to the extent that they continue to be applicable, all the breakdowns of information indicated in the entity's future consolidated financial statements.

Likewise, it has urged the company to publish, within a period of fifteen days, a detail of the Ebitda and the net financial debts, as of December 31, 2023 and 2022, of those most relevant entities where there are non-controlled participations, to the so that an investor can calculate the leverage ratio considering, or excluding, Ebitda and the debt that corresponds to the participation in its subsidiaries.

Also in 15 days it has been asked to publicly detail the commitments it will assume to adapt the use of the APMs in the next financial information reports.

GRIFOLS COMMITMENTS

In response to the CNMV report, Grifols has issued a statement, to which Europa Press has had access, in which it has assured that it is committed to improving its transparency and expanding the breakdowns of its financial information following the regulator's recommendations.

Likewise, the company has positively valued the CNMV report since, in its opinion, it concludes that the financial debt reflected in Grifols' financial statements corresponds to reality.

Grifols has been the main bullish value this Thursday, with a rise of 4.49% in a context marked by the movements of bearish funds and awaiting the analysis of the information required of the blood products company from the CNMV, which finally It arrived this Thursday afternoon, after the market closed.

The president of the CNMV, Rodrigo Buenaventura, announced this past Wednesday that the report on Grifols "could be known shortly", which represented a temporary advance with respect to the latest statements made in that regard on the same matter, since at the beginning of month he limited himself to pointing out that Grifols' analysis still had "weeks" left to conclude.