Banca March : The National Securities Market Commission (CNMV) announced that the review of Grifols’ accounts has detected some incorrect information – although it will not be necessary to restate the accounts – and is still pending the accounting analysis of the collaboration agreement with ImmunoTek, which could affect the profit and loss account.
The regulator considers that the level of indebtedness is correctly reflected in the accounts and that sufficient information has been given on related-party transactions, even pointing out an error in Gotham’s report in this regard, which it subsequently corrected. However, the shortcomings seen by the regulator focus mainly on the information on alternative performance measures, essentially the EBITDA published by the company, which also influences the leverage ratios, such as Debt/EBITDA.
In this regard, the CNMV indicates that the adjusted figure published should exclude the results attributed to non-controlled investees and that the company needs to provide a greater breakdown regarding the calculation of this financial measure. Furthermore, it points out that this lack of diligence has hindered the investor’s ability to properly analyse the company.
Now, the CNMV requires the company to publish a breakdown of the EBITDA and debt calculation of non-participated companies, as well as an improvement plan for alternative financial information. Finally, the CNMV does not close the door to specific sanctions as a full legal analysis is required to make a decision.
