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Last Year Olainfarm Sets a New Sales Record of 110.7 Million Euros

on April 28, 2017

Audited consolidated Statement of comprehensive income of JSC Olainfarm for 2016 shows that the sales of the Group last year were 110.7 million euros. This represents an increase by 14% compared to sales of 2015. Group’s net profit in 2016 was 11.6 million euros, which represents a reduction by 24% compared to 2015, when the profit record of 15.3 million was set. Profit of 2016 was considerably adversely influenced by provisions of about 7 million euros for doubtful receivables.

Group’s audited profit for the year 2016 compared to the preliminary results reported on February 28 for Q4 2016 has been improved by 1,500 thousand euros. The main reason of the profit increase is accrued selling expense reversal. Consequently this also affected retained earnings and accrued expenses captions in the statement of financial position.

Sales of the Parent company in 2016 reached 91.1 million euros, which represents an increase by 8% compared to 2015, when Parent Company’s sales were 84.7 million euros. In 2016 the Parent company made a net profit of 9.6 million euros, which is a reduction by 34% compared to 2015, when the net profit of the Parent company was 14.6 million euros.

The most rapid sales increase of the Group in 2016 was achieved in Uzbekistan, where sales grew by 65%. In 2016 Lithuania became one of the ten biggest markets of the Group, replacing Tajikistan. The biggest sales markets of the Group on 2016 were Russia, Latvia, Ukraine and Belarus.

The most rapid sales increase of the Parent company in 2016 was achieved in Uzbekistan, where sales grew by 65%. Sales to Lithuania grew by 34% and sales to Belarus and the UK, each grew by 17%. The biggest sales reduction took place in The Netherlands, where sales shrunk by 56%. In 2016 Lithuania became one of the ten biggest markets also for the Parent company, as it replaced Turkmenistan. The biggest sales markets of the Parent company in 2016 were Russia, Ukraine Latvia and Belarus.

The best sold products of the Parent company in 2016 were CNS medicines Neiromidin, Noofen and Adaptol, antibacterial preparations of Furamag and Furasol, antiarrhythmic medicine Etacizin, antituberculosis products PASA Sodium salt and antiallergic medicine Fenkarol. Share of company’s bestselling product Neiromidin in total sales of the Parent company increased from 18% to 20% in 2016.

During the reporting period, registration processes of Parent company’s products continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam.

Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Ukraine, Mongolia, Armenia, Turkmenistan and Bosnia and Herzegovina. Registration processes of several other products were launched in Turkey.

Annual meeting of shareholders of JSC Olainfarm held on June 7, 2016 approved operating plan of the Group for 2016. According to it, sales of the Group in 2016 were planned to be 100 million euros, but the net profit was expected reach 10 million euros. According to this audited report for 2015, during this period 111% of annual sales target is met and annual profit target is exceeded by 16%. At the same meeting targets for Parent company’s operations were approved, stating that Parent company’s sales target is 86 million euros, but the profit target is 9 million euros. According to these accounts, Parent company met 106% of sales target and exceeded its profit target by 7%.

Statement of Financial Position Group Parent company
31.12.2016 31.12.2015 31.12.2016 31.12.2015
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets 31 860 20 591 2 253 2 210
Property, plant and equipment 40 943 35 579 35 402 34 047
Investment properties 1 963
Financial assets 6 514 4 910 45 322 22 382
TOTAL NON-CURRENT ASSETS 81 280 61 080 82 977 58 639
CURRENT ASSETS
Inventories 24 011 20 990 17 447 18 979
Receivables 36 124 30 487 32 531 31 178
Cash 3 165 5 574 2 163 5 015
TOTAL CURRENT ASSETS 63 300 57 051 52 141 55 172
TOTAL ASSETS 144 580 118 131 135 118 113 811
             EQUITY AND LIABILITIES
EQUITY
Share capital 19 719 19 719 19 719 19 719
Share premium 2 504 2 504 2 504 2 504
Reserves 322 322 322 322
Retained earnings 74 081 65 773 73 012 65 921
Non-controlling interests 37 30
TOTAL EQUITY 96 663 88 348 95 557 88 466
LIABILITIES
Non-current liabilities
Borrowings 18 686 8 560 17 709 8 051
Deferred corporate income tax 3 025 1 947 1 278 635
Deferred income 2 810 2 656 2 706 2 604
Other liabilities 114 68
Total Non-Current Liabilities 24 635 13 163 21 761 11 290
Current liabilities
Borrowings 7 020 4 258 6 362 3 593
Trade payables and other liabilities 15 769 11 562 11 039 9 677
Deferred income 493 800 399 785
Total Current Liabilities 23 282 16 620 17 800 14 055
TOTAL LIABILITIES 47 917 29 783 39 561 25 345
TOTAL EQUITY AND LIABILITIES 144 580 118 131 135 118 113 811

 

Statement of comprehensive income Group Parent company
2016 2015 2016 2015
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue 110 693 97 392 91 096 84 746
Cost of goods sold (40 855) (32 315) (29 678) (25 979)
Gross Profit 69 838 65 077 61 418 58 767
Selling expense (31 733) (28 202) (25 336) (23 742)
Administrative expense (19 735) (18 965) (18 020) (18 118)
Other operating income 3 080 2 715 2 363 2 487
Other operating expense (9 766) (1 957) (10 675) (1 864)
Share of profit of an associate 63 118
Income from investments in subsidiaries 27 300
Financial income 3 479 262 3 355 261
Financial expense (307) (1 404) (285) (1 352)
Profit Before Tax 14 919 17 644 12 847 16 739
Corporate income tax (2 883) (2 110) (2 564) (1 976)
Deferred corporate income tax (450) (245) (643) (197)
PROFIT FOR THE REPORTING PERIOD 11 586 15 289 9 640 14 566
Other comprehensive income for the reporting period
Total comprehensive income for the reporting period 11 586 15 289 9 640 14 566
Total comprehensive income attributable to:
The equity holders of the Parent Company 11 579 15 281 9 640 14 566
Non-controlling interests 7 8
Basic and diluted earnings per share, EUR 0.82 1.08 0.68 1.03

 

JSC Olainfarm is one of the biggest pharmaceutical companies in the Baltic States with 45 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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