In 2018, JGL Group made a total of HRK 800 million in revenue and an operating profit of HRK 100 million (EBITDA). According to consolidated raw data, the Group experienced a 6% increase in sales revenue and a 3% decrease in total expenses, achieving an operating profit.
By reducing the level of indebtedness and net debt through the repayment of an EBRD loan, the Group – consisting of the parent company JGL d.d. and eight affiliates in the Croatian, Russian, Serbian, Bosnian, Slovenian and US markets – achieved financial stability, liquidity, and higher profitability.
“Our business year was characterised by an 8% increase in sales revenue in our core business segment, and a 3% decrease in total expenses compared to the preceding period. We are particularly delighted by the increase in market share of key brands in the respiratory, ophthalmology and dermatology portfolios, realised in a highly competitive environment,” says Mislav Vučić, JGL’s CEO, emphasizing that progress is evident according to all business indicators.
When it comes to its most important markets, JGL Group achieved excellent sales results in the OTC segment in Croatia, increased market shares of Aqua Maris and Rinomaris/Meralys key brands in the respiratory portfolio, Optinol/Vizol S in the ophthalmology portfolio and Acnecutan in the dermatology portfolio in Russia, while business activities in Ukraine increased by as much as 90% compared to 2017.
“Our brands have achieved great sales results, especially in the biggest markets in which we operate. JGL’s brands have grown three times faster in Russia than on the total market, twice as fast in Croatia than on the market of OTC drugs and medical products, and ten times faster in Ukraine. It should be noted that we continued to experience positive trends and double-digit growth in the first quarter of 2019, which was in line with our forecasts,” says Mislav Vučić.
In 2018, the Aqua Maris brand reached HRK 246.7 million in sales, and with a 36% share in overall sales remains the most important brand of the JGL Group. It is followed by Meralys, which reached HRK 47.2 million in sales and a 15% growth rate from the previous year. In addition to Dramina’s great results – HRK 39.9 million in sales and a 18.8% growth rate – the Vizol S brand experienced the highest growth rate (53.7%). Even though it was launched on the Russian, Ukranian and Kazakhstani markets only recently, in 2018, initial sales results indicate a very positive trend.
It should also be noted that JGL d.d.’s 2018 production volumes amounted to 32.5 million product pieces, while 59 products were launched on the B2C (business-to-consumer) markets. Key research and development resources were dedicated to developing new products in select strategic therapeutic areas, namely respiratory, ophthalmology and dermatology areas. In 2018, JGL managed 18 active projects, 14 of which were developed by JGL itself. The first commercial batches of the Aqua Maris Hypertonic BOV nasal spray and Viset eye drops – the first preservative-free product in the EU – have been produced for the Croatian market, and 20 new agreements on various forms of B2B (business-to-business) cooperation have been signed, aimed at new opportunities for expanding business in the EU, as well as projects in the ASEAN and MENA regions. In addition to its business projects, in 2018, JGL successfully implemented two new systems – SAP S/4HANA as an ERP system and a manufacturing serialisation system in accordance with the EU Directive.
In terms of staff, JGL Group ended last year with 964 employees, most of whom (602) were employed in the parent company JGL d.d., the Adrialab company and Pablo Health Institution, followed by Russia with 202 employees. JGL’s workforce consists of 77% female and 23% male employees, and a total of 83% hold university degrees.