News

Olainfarm: our forecasts for 2011 are conservative

on February 1, 2011

In 2011 JSC Olainfarm plans to achieve sales of at least 28 million lats (39.84 million Euro), and invest about 3 million lats (4.26 million Euro) in its development, CEO of JSC Olainfarm told the reporter of news portal naudaslietas.lv.

Preliminary sales forecast of 28 million lats for 2011 is a very conservative one. The company has not yet published its official sales and profit forecasts for 2011, but it already is clear, that very much like in 2010, its forecasts will be careful.

It has been several years since the company has been investing significant resources into promotion of its products. Such activities are also planned for 2011. Not only have these investments increased company’s overall sales, but they have provided a shift in sales towards the products with higher margins. It is expected that the same effect will continue in 2011, which combined with introduction of new products and commencement of sales to new markets allows us a certain level of optimism about the profitability and sales figures of 2011.

Profit forecast for 2011 is still being calculated, but it is already clear that it will be bigger that what has been achieved in 2010. Among other things the size of the profit will be slightly influenced by investments scheduled for 2011 and by salary increases planned for this year. This may result in pace of profit increase slowing down, but there are no reasons to expect that the profit itself in absolute figures is expected to fall.

Annual General Meeting of Shareholders of Olainfarm held on April 29, 2010 approved the operating plan of the company. According to it, the forecast sales of the Concern for 2010 are 24.5 million lats (34.9 million Euro), but the net profit is forecast at 2.7 million lats (3.8 million Euro). According to preliminary calculations actual sales in 2010 were 25.2 million lats (35.85 million Euro), while the profit forecast was already exceeded in 9 months of 2010.

Operating plan of the company for 2011 will be adopted by the Annual General meeting of shareholders this spring.

 

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:

Salvis Lapins
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

SigitaOlainfarm: our forecasts for 2011 are conservative