News

Profit of Olainfarm Increases to 14.8 Million Euros

on February 29, 2016

Consolidated financial report of JSC Olainfarm for 2015 shows that the Group has set yet another profit record, as it made a net profit of 14.8 million euros in 2015. This represents an increase by 21% compared to 2014 and by 7% compared to 2012, when the previous profit record of 13.88 million euros was set.

Sales of JSC Olainfarm have increased by 4% compared to 2014 and was at 97.6 million euros. Thus, this has also been the best year in corporate history in terms of sales as well.

4th  quarter of 2015 has in terms of sales been the best last quarter in corporate history, as sales of the Group reached 25.7 million euros, which exceeds the sales made during 4th quarter of 2014 by 8%.  This has been achieved despite the fact that sales to many important markets, including, Ukraine, Belarus, UK and Poland were shrinking.

“Last year has really been a stamina test for Olainfarm in CIS markets. Local currencies remained considerably turbulent in Russia, Belarus, Ukraine and Kazakhstan. Belarus continues tightening imports of several products, including pharmaceuticals.  Therefore we not only try to strengthen our marketing efforts in these countries to preserve our positions, but also work towards differentiation of our sales markets. This year we plan to make a lot of efforts to launch our Turkish sales and continue with what we have started in several other new markets,” says Valerijs Maligins, Chairman of the Board of JSC Olainfarm.

During 2015 the most rapid sales growth has been achieved to the Netherlands, where sales grew by 107%.  This is where products for World Health Organization’s anti-tuberculosis program are shipped.  In 2015 sales to Tajikistan increased by 39%, sales to Latvia increased by 11%, sales to Kazakhstan increased by 7% and sales to Uzbekistan increases by 3%.  Sales to all other countries increased by 23 on average. Sales to Belarus shrunk by 19%, sales to Poland shrunk by 13%, sales to Ukraine decreased by 7%, sales to UK shrunk by 6% and sales to Russia decreased by 1%.  Major sales markets of JSC Olainfarm in 2015 were Russia, Latvia, Ukraine, Belarus and The Netherlands.

During the reporting registration processes have been launched in Bosnia And Herzegovina; Vietnam, Myanmar; GMP audit by Turkish pharmaceutical authorities has been passed, and bioavailability tests for Turkish registration completed, allowing the company to proceed with registration in Turkey. New forms have been developed for Gripoflex 325 (with reduced content of paracetamol), ACC 200mg powder, and lactose free Memantine tablets of 10mg and 20mg. The work continues at development of new combined prolonged activity form of nitrofurantoin. Two new food supplements have been developed and registered in Baltic countries with urological and hepatological application. Food supplement Jogurt Babydrops has been registered in the Baltics and is planned for further registration in 14 countries.

During the 4th quarter alone 4 registration processes have been completed in Tajikistan, Turkmenistan and Moldova, files are being prepared for South Africa, Croatia and Iraq.

Annual meeting of shareholders of JSC Olainfarm held on June 11, 2015 approved operating plan of the Group for 2015.  According to it, sales of the Group in 2015 are planned to be 100 million euros, but the net profit will reach 15 million euros.  According to this unaudited report for 2015, during this period 96% of annual sales target and 99% of annual profit target is met.

Condensed Consolidated Statement of Financial Position Group
31.12.2015 31.12.2014
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets          20 593          18 848
Property, plant and equipment          35 591          34 674
Financial assets            4 862            4 234
TOTAL NON-CURRENT ASSETS          61 046          57 756
CURRENT ASSETS
Inventories          20 716          18 693
Receivables          31 987          28 219
Cash            5 572            2 055
TOTAL CURRENT ASSETS          58 275          48 967
TOTAL ASSETS        119 321        106 723
           EQUITY AND LIABILITIES
EQUITY
Share capital          19 719          20 041
Share premium            2 504            2 504
Reserves                322                    –
Retained earnings          65 293          50 492
Non-controlling interests                  30                    8
TOTAL EQUITY          87 868          73 045
LIABILITIES
Non-current liabilities
Borrowings            8 530          10 387
Deferred corporate income tax            1 893            1 640
Deferred income            2 656            2 099
Total Non-Current Liabilities          13 079          14 126
Current liabilities
Borrowings            4 288            6 906
Trade payables and other liabilities          13 286          12 227
Deferred income                800                419
Total Current Liabilities          18 374          19 552
TOTAL LIABILITIES          31 453          33 678
TOTAL EQUITY AND LIABILITIES        119 321        106 723

 

Consolidated statement of comprehensive income Group Group
Q4 2015 Q4 2014 M12 2015 M12 2014
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue

       25 704

23 763 97 565

      93 654

Cost of goods sold

       (8 723)

(6 765)      (32 311)

     (29 683)

Gross Profit

       16 981

       16 998        65 254

       63 971

Selling expense        (7 610)        (8 380)      (27 894)      (28 037)
Administrative expense

       (7 118)

       (4 907)      (18 921)

     (16 566)

Other operating income

         1 984

          708          3 833

         1 893

Other operating expense

          (297)

          (999)        (3 445)

       (3 030)

Share of profit of an associate              40            37            118            153
Financial income

             61

             63            259

           187

Financial expense

       (1 191)

       (3 562)        (1 399)

       (4 728)

Profit Before Tax

         2 850

            (42)        17 805

       13 843

Corporate income tax

          (110)

          (132)        (2 805)

       (2 266)

Deferred corporate income tax

            (37)

           302           (191)

           657

PROFIT FOR THE REPORTING PERIOD

         2 703

           128        14 809

       12 234

Other comprehensive income for the reporting period                  –                  –                  –                  –
Total comprehensive income for the reporting period

         2 703

           128        14 809

       12 234

Total comprehensive income attributable to:
The equity holders of the Parent Company

         2 701

           131        14 801

       12 237

Non-controlling interests

              2

             (3)               8

            (3)

Basic and diluted earnings per share, EUR

            0.19

            0.01             1.05

            0.87

 

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

SigitaProfit of Olainfarm Increases to 14.8 Million Euros