Grifols not currently planning capital increase - source

BARCELONA (Reuters) -Spanish pharmaceuticals company Grifols has no current plans for a capital increase, a company executive told investors on Thursday in response to a news report, a source with knowledge of the matter said.

The source said Grifols vice president Nuria Pascual read a statement on behalf of Grifols' chairman, Victor Grifols Roura at an investor day on Thursday, which said: "Regarding the unexpected news published yesterday in Spanish media and replicated by the financial press we want to inform that, for the time being, the board is not analysing any increase in share capital."

Grifols shares surged 6.3% following Pascual's comments, partly rebounding from a 12% decline the previous day.

The shares were hit on Wednesday by reports that the company was negotiating with several funds over a 2-billion-euro ($2.10 billion) capital increase, equivalent to almost 20% of its valuation, to reduce its debt.

Grifols, which specialises in blood plasma-based drugs, held advanced negotiations with funds over a capital hike some time ago but they were inconclusive, another source said.

A spokesperson at Grifols said on Wednesday the company would not comment on market rumours.

In Thursday's presentation to investors, Grifols said revenues were 5% up in the first half of 2022 and its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin was between 20% and 22%.

It also said it expects a strong performance for the second half of the year as it is expanding its plasma collection centres.

Plasma shortages dented Grifols' results in 2020 and 2021 as blood collection collapsed around the world during the pandemic. Its 2021 net profit fell 70% to 183 million euros ($190.70 million)

($1 = 0.9596 euros)

(Reporting by Joan Faus, additional reporting by Joao Manuel Vicente Mauricio and Andres Gonzalez; editing by Andrei Khalip, Inti Landauro and Jane Merriman)