News

Profit of Olainfarm in First Quarter Increases by 81%, Sales Reached 27 Million

on May 29, 2015

JSC Olainfarm has just experienced its most profitable quarter so far, as it made a net profit of 6.7 million euro and sales of 27 million euro. Net profit has increased by 81%, while sales have increased by 16% compared to the same period one year ago.  Major sales markets of JSC Olainfarm during this period were Russia, Latvia, Ukraine, The Netherlands and Belarus.

„Significant sales growth to countries of Central Asia and to Russia along with increased deliveries to the World Health Organization have helped us achieve yet another most successful quarter in history of Olainfarm.  However, worsening of situation on Ukrainian and Russian markets make us be more careful and focus even more on further diversification of our sales markets. We have already taken a few steps in this direction, and commencement of exports to Mongolia and successful development with registration in Turkey are proof to that.  We are expecting more rapid sales growth of Silvanols soon, as it has been more than a year since we started a lot more active use of our marketing and logistics power to help them succeed in our traditional markets,” says Valerijs Maligins, Chairman of Olainfarm’s Board.

During the 1st quarter of 2015 sales to all company’s main markets continued increasing except for Belarus, where they shrunk by 26%, compared to 1st quarter of 2014.  It should be noted, however, that during previous two years in a row, sales to Belarus were growing: by more than 40% in 2014 and more than 70% in 2013. The most rapid sales increases during the 1st quarter of 2015 were achieved in Tajikistan, where sales grew by 173%, The Netherlands, where sales grew by 157%, Kyrgyzstan, where sales grew by 129% and Kazakhstan, where sales grew by 106%.  Sales to Russia grew by 27%. In total, during the first quarter JSC Olainfarm made sales in 31 countries on 5 continents.

During this time, significant changes have occurred to the structure of bestselling products, as due to increased demand for anti-tuberculosis product PASA Sodium salt, this product has become the second best selling product with a total share of 14% of all Olainfarm products sold.  The list of best sellers is still headed by Neiromidin, Olainfarm’s product for health of nervous system.

It is proposed, that Annual meeting of shareholders of JSC Olainfarm to be convened on June 11, 2015 approves 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 1st quarter of 2015, during the first three months 27% of annual sales target and 45% of annual profit target is met.

Condensed Consolidated Statement of  Financial Position

Group

31.03.2015

31.12.2014

EUR ‘000

EUR ‘000

 ASSETS
NON-CURRENT ASSETS
Intangible assets

          18 792

          18 848

Property, plant and equipment

          36 006

          34 674

Financial assets

            4 279

            4 234

TOTAL NON-CURRENT ASSETS

          59 077

          57 756

CURRENT ASSETS
Inventories

          18 754

          18 693

Receivables

          33 929

          28 219

Cash

            4 111

            2 055

TOTAL CURRENT ASSETS

          56 794

          48 967

TOTAL ASSETS

        115 871

        106 723

EQUITY AND LIABILITIES
EQUITY
Share capital

          19 719

          20 041

Share premium

            2 504

            2 504

Reserves

               322

                    –

Retained earnings

          57 163

          50 492

Non-controlling interests

                 12

                   8

TOTAL EQUITY

          79 720

          73 045

LIABILITIES
Non-current liabilities
Borrowings

            9 940

          10 387

Deferred corporate income tax

            1 754

            1 640

Deferred income

            2 037

            2 099

Total Non-Current Liabilities

          13 731

          14 126

Current liabilities
Borrowings

            6 953

            6 906

Trade payables and other liabilities

          15 028

          12 227

Deferred income

               439

               419

Total Current Liabilities

          22 420

          19 552

TOTAL LIABILITIES

          36 151

          33 678

TOTAL EQUITY AND LIABILITIES

        115 871

        106 723

 

Consolidated statement of comprehensive income

Group

Q1 2015

Q1 2014

EUR ‘000

EUR ‘000

Net revenue

       27 024

       23 314

Cost of goods sold

        (8 190)

        (7 587)

Gross Profit

       18 834

       15 727

Selling expense

        (7 119)

        (6 460)

Administrative expense

        (4 126)

        (3 762)

Other operating income

            592

            497

Other operating expense

        (1 626)

           (646)

Share of profit of an associate

              72

              22

Financial income

         1 990

              35

Financial expense

             (56)

           (930)

Profit Before Tax

         8 561

         4 483

Corporate income tax

        (1 772)

           (683)

Deferred corporate income tax

           (114)

           (123)

PROFIT FOR THE REPORTING PERIOD

         6 675

         3 677

Other comprehensive income for the reporting period

                 –

                 –

Total comprehensive income for the reporting period

         6 675

         3 677

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

         6 671

         3 654

Non-controlling interests

                4

              23

Basic and diluted earnings per share, EUR            0.47            0.26

 

JSC Olainfarm Unaudited Interim Condensed Consolidated Financial Statements for the 3 Months Period Ended 31 March 2015:  Olainfarm_I_2015_consolidated FS_ENG

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

SigitaProfit of Olainfarm in First Quarter Increases by 81%, Sales Reached 27 Million