Feb 28, 2024
ALKALOID – operating results for the January – December 2023 period
ALKALOID reached consolidated sales of EUR 268.3 million, consolidated export of 183.9 million and invested EUR 28.3 million in the period January - December 2023.
Sales
As the unaudited stand-alone Income Statement shows, in the January - December 2023 period sales reached MKD 12,261,902,275, which is an increase by 16% compared to the same period last year. The total consolidated sales reached MKD 16,512,977,886 which is an increase by 16% compared to the same period last year.
Sales by region and country
Consolidated sales on the domestic market increased by 13%. The total consolidated export of the company grew by 17%. 31% of the total consolidated sales went on the domestic market, while foreign markets account for 69%. The breakdown by region shows that South-East Europe countries took 29% share of the sales, 22% of the sales went to the countries of Western Europe (EU and EFTA), Eastern Europe (CIS, UA…) took a 17% share, while other markets account for 1% of the total consolidated sales.
Sales in Canada had the highest growth where sales increased 62 times, followed by Italy increased 35 times, then South Africa 5 times, Chile where sales were quadrupled and Czech Republic and Great Britain where sales were more than double. Following next is Mongolia with an increase of 87%, then Armenia 69%, Romania 66%, Albania 33%, Ukraine 26%, Bulgaria 15%, Croatia 13%, Bosnia and Hercegovina 11%, Serbia 9% etc.
Sales by product group
Broken down by product group, the highest share of the total consolidated sales belongs to the Pharmaceuticals segment with 90%, more specifically, antibiotics account for 27%, OTC products 19%, neurological products 12%, cardiovascular products 12%, etc. The Chemistry, Cosmetics and Botanicals segment has a share of 10% of the total consolidated sales, or more precisely Chemistry 2%, Cosmetics 7% and Botanicals 1%. Total sales are up in Pharmaceuticals and in Cosmetics segments compared to the same period in 2022. The Pharmaceuticals segment is up by 18% and Cosmetics 10%.
Investments
In the January – December 2023 period a total of MKD 1,741,561,257 has been invested in fixed assets which compared to 2022 is an increase of 18%. This increase in investments is due to ALKALOID's biggest investment project in the last 20 years – the new production department for the production of solid forms 2 – which increases the capacities for the production of solid forms by more than double.
Operating results
Stand-alone earnings before interest, taxes, depreciation and amortization (EBITDA), which amount to MKD 2,572,485,548 marked an increase of roughly 8%, whereas net profits rose by 8% to MKD 1,520,546,813.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) reached MKD 2,750,020,561 - an increase of 8%, while net consolidated profit of MKD 1,576,864,006 also grew by 8%.
In its operations ALKALOID AD Skopje engaged more than 1,000 domestic suppliers.
Employees
In the period January – December 2023 ALKALOID AD Skopje recruited 232 new employees in the R.N. Macedonia. In March 2023 the Management Board of ALKALOID AD Skopje decided to approve and pay holiday allowance to its employees in amount of MKD 36,500 net. In December 2023 the Management Board of ALKALOID AD Skopje approved and paid New Year’s allowance to its employees in amount of MKD 34,000 net. The ALKALOID Group has 2,843 employees, of which 2,155 in the country and 688 in its subsidiaries and representative offices abroad.
Shares
The shares of ALKALOID AD Skopje have been listed since 2002 and stand as one of the most traded and most liquid shares on the Macedonian Stock Exchange. The price of ALKALOID AD Skopje shares ranged from MKD 17,199.00 to MKD 18,500.00 in the January-December 2023 period, with an average of MKD 17,781.93 per share. On 31.12.2023 5,487 individuals and companies held ALKALOID AD Skopje shares, while its market capitalization was around MKD 26 billion.
The gross dividend approved by shareholders on April 3th 2023 were MKD 701,363 thousand. In accordance with the dividend calendar in May 2023 the gross dividend in amount of MKD 490.00 has been paid i.e. the net-dividend MKD 441.00 for one ordinary share. The dividend paid per share for 2022 is 11.36% higher than the dividend paid per share for 2021.
Business plan 2024
The business plan for 2024, adopted by the Management Board of ALKALOID AD Skopje at its December 27th, 2023 meeting, anticipates investment of around 10% of the consolidated revenue in tangible and intangible assets, growth in consolidated sales of 10% compared to actual sales in 2023, and growth in pre-tax consolidated profit of 7% in comparison to 2023.
The 2024 business plan is based on the expectations, forecasts and opportunities on the existing and new markets and products available to the Company at the time of drafting the plan. Circumstances and events in 2024 may vary from those taken into account in the Business Plan and so may actual results.
Expectations for the upcoming period
It is highly likely that the trend of operating within challenging economic conditions, which has prevailed in recent years, will persist into 2024. Key challenges such as inflation and increasing interest rates are anticipated to maintain their current levels or even experience slight declines. Additionally, global security crises further complicate the economic landscape, introducing uncertainties that may impact energy prices, disrupt supply chains, and affect the availability of certain materials.
Despite these challenges, we are poised to sustain our growth trajectory in 2024. Building upon our ongoing investments in new manufacturing facilities, equipment, and research and development endeavours, we aim to fortify our competitive portfolio and capitalize on market expansion opportunities. In pursuit of these objectives, we will continue to recruit talent domestically and internationally, while steadfastly investing in enhancing the knowledge and skills of our workforce.