Recognizing the importance of adherence to the highest global standards of modern and responsible business, the pharmaceutical company Jadran Galenski laboratorij d.d. from Rijeka (JGL) recently published a Sustainable Development Report which provides an overview of the company’s economic, environmental and social operation in the 2008/2009 period. The report, covering a whole range of actions and activities in the company, and all company relationships, was issued by JGL for the second time, in accordance with the Global Reporting Initiative (GRI) guidelines.
The document was issued in the Croatian and English languages, and its indicators show solid business performance and export growth. The report also points to the fact that continuous growth of the company amounted to 20% to 30% in 2008.
The production program is primarily based on company development, still regarded as one of the strategic business processes. However, to maintain optimum adaptability to market needs and to shorten the product marketing period, JGL’s emphasis was on strategic cooperation projects during this period. Implementation of those projects in 2008 enhanced development, registration and launching of thirty new products in several markets, as well as completion of more than 100 registration procedures.
In 2008 and 2009 JGL was present in 19 markets, but engaged in active communication with a number of potential partners, with the purpose of further business expansion.
JGL operating income in 2008 grew for 24% compared to 2007, which is an extremely high growth rate if we take into consideration industrial growth in Croatia, as well as the general growth in the pharmaceutical sector. The amount of USD 40 million in export activities in 2008 ranked JGL among the 100 largest Croatian exporters, and among the top 20 with respect to the export-import ratio and the profitability of comparable companies.
Operating revenues in 2009 were 2% lower compared to 2008, which is a very good sales result given the decline in consumption caused by the impact of recession, particularly on foreign markets. The 6% growth in domestic sale based on the continuous development strategy and new product launch, partially compensated for the decline in foreign market sales, caused by the policy of reducing stocks, implemented by JGL’s key customers on the CIS markets. Nevertheless, export dominated in the business income structure.
According to Mr. Ivo Usmiani, the company CEO, taken from the perspective of sustainable development, 2009 was a test of financial viability and business success, as a precondition for the survival of company values and overall sustainability.
It should be also mentioned that the publication of the Sustainable Development Report proves once again that JGL excels in the field of responsible business conduct and care about society and the environment. In 2008 the company fulfilled all its obligations required by the regulations in force, increasing the efforts and investment which consequently improved the condition and protection of the environment. Certainly the most important investment in 2008 was wastewater control and treatment at the Svilno site. In the same period, the absolute maximum in the quantity and type of disposed waste was achieved.
In 2009 some of the key technological projects were implemented, including construction and equipping a new modern facility for semi-solid pharmaceutical forms according to the RU GMP standards, which concluded the investment cycle at the Svilno site. In addition, work continued on raising the quality management system in accordance with EU GMP and ISO standards, as well as the on development of environmental management systems. JGL already had ISO 22000, and by the end of 2009 all preparations had been made for certification according to ISO 9001 and ISO 13486.
In a series of activities presented in the report, one of the outstanding achievements is a high rate of employment growth of 17% in 2008. Of the total number of employees in 2008, 83% were employed full time, which rose to 89% in 2009. The gender structure of employees shows that more than 70% of the employees are women, which is an exceptionally important fact, since we know that women are typically less successful in finding work. It is important to emphasize that a good employment rate continued in 2009 with no layoffs. The employment trend continued, and JGL employs 477 people today, of which 277 in Croatia.
We want to stress that due to product quality and continuous export growth, JGL received numerous awards for achievements in the given period, including the “Ulagač godine” (Investor of the Year) award, “ICT Gold” award and “Zlatni ključ” award for the best exporter to the Russian market.
JGL from Rijeka issued its second sustainability period report in the year in which it is celebrating the 20th anniversary of its establishment.