Unaudited report of JSC Olainfarm for first six months of 2104 shows that the consolidated profit was 8.9 million euro, while consolidated sales were 48.6 million euro. The profit has increased by 73%, while sales increased by 41%, compared to the same period of 2013. Major sales markets of JSC Olainfarm during this period were Russia, Ukraine, Latvia, Belarus and the UK.
Thus JSC Olainfarm has experienced its most profitable quarter making the new profit of 5.25 million euro, which is by 119% more than the net profit of the second quarter of 2013. In terms of sales this has also been the most successful second quarter as 25.2 million euros worth of sales were made, which is an increase by 52% compares to the same period one year ago.
„Despite very tense relations between Russia and Ukraine, we managed to make this our best six months so far, both in terms of sales and profits. However, we cannot be sure that this conflict or related sanctions will not influence us in the future. As political and economic outlook for Russia and Ukraine is very difficult to predict at this point, we have decided to make provisions on all receivable outstanding from these countries as of June 30th,” says Valerijs Maligins, Chairman of the Board of JSC Olainfarm.
During the 1st half of 2014 sales to all company’s main markets continued increasing except for Kazakhstan, where they shrunk by 27%, compared to 1st half of 2013. Such a reduction was expected, mainly because of devaluation of Kazakhstan’s currency. The most rapid sales increases during the 1st half of 2014 were achieved to Poland, where sales grew by 13434%, Ukraine by 303%, The Netherlands by 180% and Uzbekistan by 102%. In total during six months of 2014, JSC Olainfarm made sales to 32 countries on 5 continents.
During this period 27 registration cases have been approved in 12 countries, including Poland, Mongolia, Romania and Kosovo. Several products are still in the process of obtaining MAs, among other countries, in Turkey and Kosovo, registration processes have been launched in Bosnia and Herzegovina and other new markets. Preclinical trials of R-Phenylpiracetam are being conducted and totally new forms and line extensions of existing products are being developed
Annual meeting of shareholders of JSC Olainfarm held on April 29, 2014 approved operating plan of the Concern. According to it, sales of the Concern in 2014 are planned to be 93 million euros, but the net profit will reach 15 million euros. According to this unaudited report for 1st half of 2014, during the first six months 52.2% of annual sales target and 59.4% of annual profit target is met.
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 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by:
Member of the Board
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