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Consolidated Sales of Olainfarm in First Quarter Reach 28.6 million euros

on May 31, 2017

Consolidated sales of JSC Olainfarm in first quarter of 2017 reached 28.6 million euros, which represents an increase by 9% compared to the first quarter of 2016. The main sales markets of the Group during this period were Russia, Latvia, Belarus, Ukraine and The Netherlands. In terms of sales, this has been the best first quarter and second best overall quarter in corporate history.

During the 1st quarter of 2017 sales of Olainfarm continued growing in all its major sales markets, except Ukraine, where they dropped by 59% and Kazakhstan, where they dropped by 21% compared to the first quarter of 2016. The biggest sales increase during the three months period was achieved in Georgia, where sales grew by 694%, The Netherlands, where sales grew by 271%, Italy, where sale grew by 120% and Germany, where sales increased by 99%.

During the first quarter of 2017 significant changes have occurred to the structure of bestselling products, as Adaptol, which was the bestselling product in 1st quarter of 2016 is now only the third bestselling. Soluble furagin products (Furamag and Furasol) have become the bestselling product of Olainfarm, leaving Neiromidin, the long-term bestseller in the second positions. Overall, the distribution of sales between top 10 products has become more even as the leading product makes up only 16% of sales of Olainfarm products.

During the reporting period, registration processes were completed in Armenia, Albania and Azerbaijan. Registration processed have been started in Nepal and continued in Turkey, Armenia, Myanmar and Vietnam. Synthesis development is completed for anticancer and antituberculosis substances new to the company.

It is proposed, that Annual meeting of shareholders of JSC Olainfarm to be convened on June 1, 2017 approves operating plan of the Group for 2017. According to it, sales of the Group in 2017 are planned to be 127 million euros, but the net profit will reach 15.5 million euros. According to this unaudited report for 1st quarter of 2016, during the first three months 23% of annual sales target and 24% of annual profit target is met.

 

Condensed Consolidated Statement of Financial Position Group
31.03.2017 31.12.2016
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets 33 174 31 860
Property, plant and equipment 40 830 40 943
Investment properties 1 963 1 963
Financial assets 7 374 6 514
TOTAL NON-CURRENT ASSETS 83 341 81 280
CURRENT ASSETS
Inventories 24 866 24 011
Receivables 35 599 36 124
Cash 5 002 3 165
TOTAL CURRENT ASSETS 65 467 63 300
TOTAL ASSETS 148 808 144 580
           EQUITY AND LIABILITIES
EQUITY
Share capital 19 719 19 719
Share premium 2 504 2 504
Reserves 322 322
Retained earnings 77 754 74 081
Non-controlling interests 42 37
TOTAL EQUITY 100 341 96 663
LIABILITIES
Non-current liabilities
Borrowings 17 513 18 800
Deferred corporate income tax 3 040 3 025
Deferred income 2 694 2 810
Total Non-Current Liabilities 23 247 24 635
Current liabilities
Borrowings 8 072 7 020
Trade payables and other liabilities 16 661 15 769
Deferred income 487 493
Total Current Liabilities 25 220 23 282
TOTAL LIABILITIES 48 467 47 917
TOTAL EQUITY AND LIABILITIES 148 808 144 580

 

Consolidated statement of comprehensive income Group
Q1 2017 Q1 2016
EUR ‘000 EUR ‘000
Net revenue 28 571 26 130
Cost of goods sold (11 463) (9 908)
Gross Profit 17 108 16 222
Selling expense (8 025) (6 845)
Administrative expense (5 414) (4 466)
Other operating income 449 605
Other operating expense (743) (1 755)
Share of profit of an associate 32 17
Financial income 1 158 257
Financial expense (102) (40)
Profit Before Tax 4 463 3 995
Corporate income tax (839) (1 014)
Deferred corporate income tax 54 132
PROFIT FOR THE REPORTING PERIOD 3 678 3 113
Other comprehensive income for the reporting period
Total comprehensive income for the reporting period 3 678 3 113
Total comprehensive income attributable to:
The equity holders of the Parent Company 3 673 3 108
Non-controlling interests 5 5
Basic and diluted earnings per share, EUR 0.26 0.22

 

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with 45 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

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