News

Semi-annual Profit of Olainfarm More Than Doubles

on August 31, 2010

Profit of JSC Olainfarm during the first six months of this year has reached 1.79 million lats (2.55 million euro), while the sales exceed 12.5 million lats (17.8 million euro).  This has been yet another best six months in Olainfarm’s history to a large extent because of significant increase in exports: now the company is exporting nearly 95% of its sales.  In some smaller markets the increase in sales exceeds 100%, e.g. in Kyrgyzstan increase in Olainfarm sales has been more than 400% compared to six months of 2009.  Considerable increase took place also in countries with bigger share in Olainfarm’s sales, like Kazakhstan, where the sales grew by 75%, Belarus by 45%, Russia by 22%, Ukraine by 14% compared to the same period last year.

“Olainfarm has reached yet another sales record and has experienced its best second quarter so far.  Main growth drives still are new products, new markets and strengthened marketing. We surely feel like we have caught the wave of stable growth and we are efficiently riding it.  We have all the intentions to continue this way,” says Salvis Lapins, Member of the Board of Olainfarm.

During the first six months of 2010 Olainfarm’s sales grew by 17%, while the net profit by 117% compared to the first half of 2009.

During the first six months of 2010, the sales to all main markets of the Company have increased, except for Latvia and Lithuania.  Considerable increase in sales has been experienced not only in countries with historically insignificant sales volumes (Kyrgyzstan by more than 400%, Poland by more than 200%, Tajikistan by 199%, Uzbekistan by 179%, Estonia by 144%), but also in countries with much bigger share in Company’s sales, like Kazakhstan by 75%, Belarus by 45%, Russia by 22%, Ukraine by 14%.

During the six months of 2010 several registration cases have been finalized in Latvia, Lithuania, Estonia, Ukraine, Kyrgyzstan and Albania. Also several registration files have been submitted to other markets that are untypical for the company, including Indonesia and Serbia.  During the reporting period pilot tests of R-Fenotropil have also been successfully completed and the work has been launched to identify the optimal drug form for this molecule.  In April 2010 Olainfarm has received a new Good Manufacturing Practice compliance certificate.

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).  Sales of the company during the 1st half of 2010 were 51% of target and net profit reached 67% of annual target.  Therefore the sales of the company develop according to target results, while the net profit is slightly exceeding the
target for the year.

 

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

 

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