JGL Group’s revenue exceeds HRK 1 billion
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JGL Group’s revenue exceeds HRK 1 billion

3 min of reading Published: 03.3.2021.

According to consolidated, unaudited financial results for last year, JGL Group exceeded HRK 1 billion in total revenue, achieving a record in its operations so far, and in the most difficult year for business worldwide. Thanks to the quick and successful adjustment of business priorities and to all employees adjusting to the new working conditions in the pandemic crisis, JGL Group recorded double-digit growth. With HRK 1,020 million in total revenue, it became the largest Croatian pharmaceutical company.

“Despite difficult and reduced access to healthcare in all countries in which we operate, a decline in the value of local currencies of about 30 percent in our largest markets, and consequently, a decline in the purchasing power of the population, in 2020 we again surpassed ourselves. Crossing the magic threshold of HRK 1 billion in total revenue places us in the group of about twenty largest manufacturing companies in Croatia. I am proud that with this result, we became the largest Croatian pharmaceutical company in the year in which we celebrate 30 years of JGL and 10 years of one of our key brands, Meralys”, says Mislav Vučić, JGL’s CEO, adding that last year’s growth rate at the Group level was lower than the year before the pandemic, but also that, given the circumstances, they are extremely satisfied with it.

JGL also reported a double-digit revenue increase in 2020 in its core, pharmaceutical business. Operating revenue exceeded HRK 800 million, with the EBITDA margin increasing by more than one percentage point, to 18.6%. The growth of operating profit and debt reduction through the payment of existing loan liabilities outweighed the decline in liquidity, primarily on the Croatian market, so that the indebtedness factor (net debt/EBITDA) decreased from 2.8x to 2.2x EBITDA during the year.

“Last year showed us how crucial it is to have a clear strategic framework, while remaining fast and agile in adapting and making decisions that depend on extremely volatile market circumstances. At JGL, in just two weeks after the onset of the coronavirus pandemic, we moved to a common communication and collaboration platform, including all our markets, from Alma Ata, through Moscow and Rijeka, to Skopje. Throughout the year, protecting the health of our employees and their families was a key priority. The entire JGL team has shown maximum seriousness and responsibility in the implementation of internal, restrictive anti-epidemic measures due to which we have managed to maintain the stability of the company, business continuity and market supply,” says Vučić.

Last year, JGL achieved growth in all three corporate strategic therapeutic areas – flu and colds, ophthalmology and dermatology. The company’s product portfolio has successfully responded to customer needs – Aqua Maris nasal sprays to prevent COVID-19 infection, Vizol S eye drops for dry eyes for increased time spent indoors and working in front of digital screens, and Aknekutan against acne for the ever-present desire for a confident appearance.

According to shares in net sales, Russia is still JGL’s largest market with a 39% share, followed by B2B business and the Croatian market, followed by Ukraine and Kazakhstan. When it comes to brands, Aqua Maris carries a 36% share of sales, followed by an increasingly significant B2B portfolio with 15%, Aknekutan and Meralys each with a 7% share, and Vizol S, whose share in sales doubled in 2020. During the last year, the two-way business cooperation with a strategic partner, the Polish pharmaceutical company Polpharma, also continued unhindered. On the one hand, transfers of development and commercial projects continued successfully, while on the other hand, Vizol S and Viset were launched on the Polish market.

“In this very important, jubilee year, I am glad to see what we have achieved, and I am especially happy that we are becoming a real global player, ready to compete with the greatest. In our core business, we achieved HRK 670 million in operating revenue in export markets, which represents 85% of exports in the structure of our sales. And we don’t plan to stop. This year, we continue to invest in a new project Integra 2020, worth HRK 373 million, whose financing was agreed with HBOR, and with which we will ensure the future development and technological capacities of the company. Our preparations for the future relate to investments in research and development, digitalisation and robotisation, as well as intensifying cooperation with the University of Rijeka, which we have identified as key. We continue our chosen direction by following innovative practices, strengthening the growth in competitiveness and export production potential of our company, but also of the Croatian pharmaceutical industry, as well as the Republic of Croatia itself. I congratulate all employees on their excellence and dedication, and I thank all our patients, doctors, pharmacists and partners for the trust they place in us every day”, concludes Ivo Usmiani, President of JGL’s Board of Directors.

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