The consolidated profit or loss statement for the JSC Olainfarm Group’s operation in the first 6 months of 2011 show that the Group continues to set record profits by earning 3.2 million lats (4.6 million euros) during the first 6 months of the year. It is by 179% more than the first 6 months of the previous year when profit reached 1.79 million lats (2.55 million euros). These 6 months have been the most profitable period in the company’s history.
“We have had the most profitable 6 months’ period in the history of Olainfarm with profit reaching 63% of this year’s forecast and sales reaching 61%. We are confident regarding the future that diversification of the markets and product portfolios, active work with registration of new products and introduction of such new products in the markets, as well as simultaneous cost reduction in the company is a way for Olainfarm to continue the current set of record profit,” informs Valērijs Maligins, Chairman of the Management Board of JSC Olainfarm.
Turnover of JSC Olainfarm has increased by 42% during the first 6 months of 2011, compared to the respective period of the previous year, and has reached 17.8 million lats (25.4 million euros). The sales volume of JSC Olainfarm has almost doubled since the first 6 months of 2007.
Sales of JSC Olainfarm increased during the first 6 months of 2011 in all main markets of the company: ranging from an increase by 10% in Lithuanian up to 3,529 % in Canada. There is a considerable increase in sales in the Netherlands – by 807%, Uzbekistan by 134%, Ukraine by 118% and the United Kingdom by 100%. The programme of memantine was considerably extended in Canada this year, and “PASS Nātrija sāls” (PASS sodium salt) is exported to the Netherlands which was produced according to orders from the World Health Organisation. The increased sales in Ukraine were achieved partially by reviewing the product prices and marketing costs. Increase in other countries was achieved through sales of products on previous conditions.
Diversification of products offered by Olainfarm has increased during the first 6 months of this year: top 10 products make only 83% of total sales now.
Budget and operating plan of JSC Olainfarm for 2011 provides that the company’s turnover in 2011 will be 29.4 million lats (41.8 million euros) with the profit of 5.1 million lats (7.3 million euros). According to unaudited accounts of the 1st quarter of 2011, sales have reached 28% and profit 34% of the full year’s forecast.
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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