Grifols announced a comprehensive operational restructuring plan designed to reinforce its competitiveness and build a more streamlined, efficient and cost-effective global organization. Under the initiative, Grifols aims to significantly reduce its cost base, improve operational cash flow, drive financial performance, and create a more agile and effective operating model.
 
The plan focuses on three major areas: optimizing plasma costs and operations, streamlining corporate functions, and enhancing other efficiencies across the organization. Grifols expects to achieve annualized cost savings of approximately EUR 400 million ($427 million) relative to comparable 2022 full year costs. This plan will be initiated in the first quarter of 2023 and is expected to be completed through the fiscal year.
 
The optimization of plasma costs and operations, with the objective of creating efficient, contemporary, high quality, and donor-friendly plasma procurement, aims to maintain desired plasma volumes while reducing the cash cost per liter of plasma through a set of measures expected to generate annualized savings of at least EUR 300 million relative to full year 2022.
 
The second part of the plan is focused on streamlining corporate functions, such as centralizing and automating functions, more fully sharing services across business units, consolidating vendors, streamlining reporting structures, and eliminating duplicative functions and positions. These initiatives will impact approximately 2,300 FTEs, most of whom are in the U.S., with approximately one-third located in Spain. 
 
The third part of the plan, enhancing other efficiencies across the organization, will reduce operational costs related to global procurement, logistics, and facilities, in part due to a real estate rationalization affecting certain offices but not industrial facilities.
 
Grifols estimates a one-time charge of approximately EUR 140 million in fiscal 1Q23 to deliver the cost savings initiatives and is derived mainly from severance payments, advisory fees, and other restructuring activities.
 
Steven F. Mayer, Grifols Executive Chairperson, said, “Following an in-depth review of our organizational and cost structures, staffing, processes, facilities, systems, and incentive plans across our global operations, we are convinced that these initiatives are necessary not just to improve our financial performance but also to enable us to become more nimble, more responsive, more decisive, and more effective. This in turn will allow us to become and remain more competitive, which is essential as we pursue our long-term business strategy in a fast-changing environment. The entire management team is committed to sustaining this renewed focus on efficiency, profitability and cash flow and the continued pursuit of our mission to enhance and save the lives of patients throughout the world.”