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Consolidated sales of Olainfarm in First Quarter Reached 26.1 Million Euro

on May 31, 2016

Consolidated sales of JSC Olainfarm during the first quarter of 2016 were 26.1 million euros, which represents a reduction by 3% compared to the same period one year ago. The net profit during this period was 3.1 million euros, which is a reduction by 52% compared to first quarter of 2015. Provisions of 1 million euros have been made for receivables from Ukrainian partners. The major sales markets during this period were Latvia, Russia, Ukraine and Belarus.

„This year has started with rather unpredictable environment in several CIS countries, where we see worsening of economic situation, governmental activities targeted at protection of local markets and support of local producers. Several of these activities have influences our sales adversely. Therefore we plan to place part of production in these countries of acquire a daughter company there, which would allow at least partially mitigating the effects,” says Valerijs Maligins, Chairman of the Board of JSC Olainfarm.

During the 1st quarter of 2016 sales to all company’s main markets continued increasing except for Russia, where they shrunk by 38%, compared to 1st quarter of 2015. This fact, combined with good sales growth in Latvia, has made Latvia to be the biggest market for the Group during 1st quarter of 2016. The most rapid sales increase has been achieved in Poland, where sales grew by 181%.  Sales to Turkmenistan grew by 162%, sales to Uzbekistan grew by 134% and sales to Belarus grew by 77%.

During this period significant changes have occurred to the structure of bestselling products, as Adaptol has become the bestselling product, leaving a long term leader Neiromidin in the second place. Share of the bestselling products has also levelled out as no product makes up more than 15% of Olainfarm sales. Overall concentration of sales has also improved, as ten bestselling products make up only 89% of sales.

During the reporting period, registration processes continued in Turkey, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam. Registration of several products has been successfully completed in Estonia, Turkmenistan, Bosnia and Herzegovina. Laboratory research has been completed for new product “Ibuprofen Antigripp”, two new final dosage forms developed for Ranitidine, scheduled for registration by the end of 2016. Work continues at developing new final dosage forms of anti-tuberculosis products.

It is proposed, that Annual meeting of shareholders of JSC Olainfarm to be convened on June 7, 2016 approves operating plan of the Group for 2016. According to it, sales of the Group in 2016 are planned to be 100 million euros, but the net profit will reach 10 million euros. According to this unaudited report for 1st quarter of 2016, during the first three months 26% of annual sales target and 31% of annual profit target is met.

 

Condensed Consolidated Statement of Financial Position Group
31.03.2016 31.12.2015
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets 21 142 20 591
Property, plant and equipment 35 409 35 579
Financial assets 4 845 4 910
TOTAL NON-CURRENT ASSETS 61 396 61 080
CURRENT ASSETS
Inventories 20 971 20 990
Receivables 32 365 30 487
Cash 5 366 5 574
TOTAL CURRENT ASSETS 58 702 57 051
TOTAL ASSETS 120 098 118 131
           EQUITY AND LIABILITIES
EQUITY
Share capital 19 719 19 719
Share premium 2 504 2 504
Reserves 322 322
Retained earnings 68 881 65 773
Non-controlling interests 35 30
TOTAL EQUITY 91 461 88 348
LIABILITIES
Non-current liabilities
Borrowings 7 610 8 560
Deferred corporate income tax 1 830 1 947
Deferred income 2 695 2 656
Total Non-Current Liabilities 12 135 13 163
Current liabilities
Borrowings 4 512 4 258
Trade payables and other liabilities 11 210 11 562
Deferred income 780 800
Total Current Liabilities 16 502 16 620
TOTAL LIABILITIES 28 637 29 783
TOTAL EQUITY AND LIABILITIES 120 098 118 131

 

 

Consolidated statement of comprehensive income Group
Q1 2016 Q1 2015
EUR ‘000 EUR ‘000
Net revenue 26 130 27 024
Cost of goods sold (9 908) (8 190)
Gross Profit 16 222 18 834
Selling expense (6 845) (7 068)
Administrative expense (4 466) (4 167)
Other operating income 605 414
Other operating expense (1 755) (1 458)
Share of profit of an associate 17 72
Financial income 257 1 990
Financial expense (40) (56)
Profit Before Tax 3 995 8 561
Corporate income tax (1 014) (1 772)
Deferred corporate income tax 132 (114)
PROFIT FOR THE REPORTING PERIOD 3 113 6 675
Other comprehensive income for the reporting period
Total comprehensive income for the reporting period 3 113 6 675
Total comprehensive income attributable to:
         The equity holders of the Parent Company 3 108 6 671
Non-controlling interests 5 4
Basic and diluted earnings per share, EUR 0.22 0.47

 

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 40 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

 

Information prepared by:

Salvis Lapins
JSC Olainfarm
Member of the Management Board
Rupnicu iela 5, Olaine, Latvia, LV 2114
Phone: +371 6 7013 717
Fax: +371 6 7013 777
E-mail: Salvis.Lapins@olainfarm.lv

 

 

 

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