News

Consolidated Sales of Olainfarm in Six Months Exceed 53 Million

on August 31, 2016

Unaudited financial reports of JSC Olainfarm for six months of 2016 show that consolidated sales of the Company reached 53.5 million euros, which represents an increase by 7% compared to the first half of 2015.  Therefore, this is yet another sales record.  Net profit for the period was 6.1 million euros, which represents a reduction by 34% compared to the same period one year ago.  During these six months, provisions of two million euros have been made for Ukrainian receivables. Major sales markets of JSC Olainfarm during this period were Russia, Latvia, Ukraine and Belarus.

 „One of the main strategic activities of ours is to use our marketing and logistics experience to facilitate growth of our daughter companies in their existing and new markets.  In order to strengthen the positions of Tonus Elast in Russia we just registered our fully owned daughter company Elast Medikl there. It will be exclusive importer and distributor of Tonus Elast in Russia,” says Valerijs Maligins, Chairman of Olainfarm’s Board.

During the first half of 2016, sales to most of Company’s key markets continued growing, except Ukraine, where they fell by 7% compared to six months of 2015, and Kazakhstan, when they fell by 12% during the same period. Since during the second quarter sales to Russia increased again, Russia has again become the largest market for the Company with 30% share in total sales. During six months of 2016, significant sales increase has been achieved in Italy, where sales grew by 194%, Uzbekistan, where sales grew by 134% and Turkmenistan, where sales grew by 97%.  Major sales markets of JSC Olainfarm in first half of 2016 were Russia, Latvia, Ukraine and Belarus. In total during six months of 2016 Olainfarm’s products were sold to 38 countries in 4 continents.

During the first half of 2016 significant changes have occurred to the structure of bestselling products, as Neiromidin has again become the bestselling product with 17% share in total sales. Sales made during the second quarter have brought Furagin back to ten bestselling products replacing Remantadin. Overall concentration of sales has remained unchanged, as ten bestselling products make up only 89 % of sales.

Annual meeting of shareholders of JSC Olainfarm convened on June 7, 2016 approved operating plan of the Group for 2016.  According to it, sales of the Group in 2016 are planned to be 100 million euros, but the net profit will reach 10 million euros.  According to this unaudited report for 6 months of 2016, during this period 54% of annual sales target and 61% of annual profit target is met.

 

Condensed Consolidated Statement of  Financial Position Group
30.06.2016 31.12.2015
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets 28 339 20 591
Property, plant and equipment 38 513 35 579
Financial assets 4 530 4 917
TOTAL NON-CURRENT ASSETS 71 382 61 087
CURRENT ASSETS
Inventories 23 770 20 990
Receivables 38 197 30 480
Cash 3 656 5 574
TOTAL CURRENT ASSETS 65 623 57 044
TOTAL ASSETS 137 005 118 131
           EQUITY AND LIABILITIES
EQUITY
Share capital 19 719 19 719
Share premium 2 504 2 504
Reserves 322 322
Retained earnings 69 335 65 773
Non-controlling interests 35 30
TOTAL EQUITY 91 915 88 348
LIABILITIES
Non-current liabilities
Borrowings 19 367 8 560
Deferred corporate income tax 2 295 1 947
Deferred income 3 030 2 656
Total Non-Current Liabilities 24 692 13 163
Current liabilities
Borrowings 6 590 4 258
Trade payables and other liabilities 13 314 11 562
Deferred income 494 800
Total Current Liabilities 20 398 16 620
TOTAL LIABILITIES 45 090 29 783
TOTAL EQUITY AND LIABILITIES 137 005 118 131

 

Consolidated statement of comprehensive income Group Group
Q2 2016 Q2 2015 6M 2016 6M 2015
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue 27 387 23 045 53 517 50 069
Cost of goods sold (10 412) (8 052) (20 320) (16 242)
Gross Profit 16 975 14 993 33 197 33 827
Selling expense (7 779) (6 375) (14 624) (13 443)
Administrative expense (4 584) (4 135) (9 050) (8 302)
Other operating income 891 522 1 496 936
Other operating expense (2 496) (1 877) (4 251) (3 335)
Share of profit of an associate 22 23 39 95
Income from investments in subsidiaries
Financial income 1 042 268 1 299 2 258
Financial expense (69) (55) (109) (111)
Profit Before Tax 4 002 3 364 7 997 11 925
Corporate income tax (1 081) (738) (2 095) (2 510)
Deferred corporate income tax 82 (21) 214 (135)
PROFIT FOR THE REPORTING PERIOD 3 003 2 605 6 116 9 280
Other comprehensive income for the reporting period  –
Total comprehensive income for the reporting period 3 003 2 605 6 116 9 280
Total comprehensive income attributable to:
The equity holders of the Parent Company 3 003 2 605 6 111 9 276
Non-controlling interests 5 4
Basic and diluted earnings per share, EUR 0.21 0.18 0.43 0.66

 

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

 

 

Share this post:
Eva DombrovskaConsolidated Sales of Olainfarm in Six Months Exceed 53 Million