Spanish pharmaceutical firm Grifols, the world's third-largest blood products maker, expects further growth in the second half of 2012, it said on Tuesday after reporting an almost seven-fold rise in first-half net profits. The Barcelona-based company made a net profit of € 134 million ($164 million) in the first six months of 2012, boosted by a strong performance across regions and business divisions and its acquisition of U.S. firm Talecris last June.

"What we need to look at is the trend over the last six months. The evolution we've seen in the first half is pretty much in line with how the year should be," Financial Director Nuria Pascual said. Pascual added that the firm would not pay dividends immediately because of debt levels but hoped to reinstate cash payments soon. Net debt stood at € 2.7 billion at end-June.

"We're generating cash, we're reducing debt, the business is going well, margins are good and with the way things are now we could think about paying dividends again. (Leverage) ratios won't let us," she said. Pascual said Grifols was looking at other methods of rewarding shareholders, with a bonus issue as a possibility. "Right now it's a possibility we could look at this year, but nothing is decided," she said. Grifols said the main driver of growth was sales volumes, even though prices were generally stable, with slight upticks for certain products.

Shielded From Spain

Grifols generated over 90 % of its profits outside its home market and has benefited from its $4 billion acquisition of Talecris last year, which it says will lead to $300 million in annual operating synergies from 2015. Grifols, a market leader in North America, reported revenues of € 1.3 billion, up 15 % from a year earlier and matching the prediction of analysts. Only 13 % of revenues were generated in Greece, Spain, Italy and Portugal, the countries at the heart of the euro zone crisis, where some pharmaceutical companies have complained of unpaid bills.

The company said it would continue to focus on regions that show promising growth, such as Latin America, shielding it from the worst of the economic slump that has left one in four jobless in Spain. ($1 = 0.8168 euros)