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Profit of Olainfarm in Six Months Reaches 9.3 Million Euros

on August 31, 2015

Unaudited profit and loss account of AS Olainfarm for six months of 2015 shows that the Group has made a net profit of 9.3 million euros, while sales reached 50 million euros. Net profit has increased by 4%, while the sales have increased by 3%, compared to the same period of 2014, making this the best first six months in corporate history so far, both in terms of sales and in terms of profit. The major sales markets of JSC Olainfarm during this period were Russia, Latvia, Ukraine, The Netherlands and Belarus.

„Taking into consideration the geopolitical reality, a further diversification of sales markets increasingly is a priority. During 2015 and subsequent years company plans to continue all efforts targeted at implementation of new products, entering new markets, making a little more emphasis on cooperation with other producers in distribution of their products on CIS and other markets. After the end of the reporting period, the exports were commenced to Mongolia, registration processes in Turkey and other countries are successfully continuing. More attention is being paid to possible acquisition of a company, whose sales markets or products are significantly different ours, which would help us expand our sales geography,” says Valerijs Maligins, Chairman of the Board.

During the six months period the company has made provisions of more than 1.5 million euros for receivables and currency risks.

During the first half of 2015 Company’s sales grew in Russia, Latvia, The Netherlands, where the anti-tuberculosis products is shipped for the needs of the World Health Organization (WHO), Kazakhstan, Tajikistan, Lithuania and other markets, while in Ukraine, Belarus, UK and Uzbekistan they shrunk. In general, the sales split between countries has remained relatively unchanged, and reduction of Russia’s share from 37% to 34% is really the only significant development. In total, during six months of 2015, JSC Olainfarm was selling its products to 37 countries on five continents.

During the reporting registration processes have been launched in Bosnia And Herzegovina; Vietnam, Myanmar; GMP audit by Turkish authorities has been passed, 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.

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 1st half of 2015, during the first six months 50% of annual sales target and 62% of annual profit target is met.

Condensed Consolidated Statement of Financial Position Group
30.06.2015 31.12.2014
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets            19 876            18 848
Property, plant and equipment            36 645            34 674
Financial assets              4 122              4 234
TOTAL NON-CURRENT ASSETS            60 643            57 756
CURRENT ASSETS
Inventories            19 666            18 693
Receivables            33 148            28 219
Cash              1 854              2 055
TOTAL CURRENT ASSETS            54 668            48 967
TOTAL ASSETS          115 311          106 723
           EQUITY AND LIABILITIES
EQUITY
Share capital            19 719            20 041
Share premium              2 504              2 504
Reserves                  322                    –
Retained earnings            59 768            50 492
Non-controlling interests                  12                    8
TOTAL EQUITY            82 325            73 045
LIABILITIES
Non-current liabilities
Borrowings              8 453            10 387
Deferred corporate income tax              1 811              1 640
Deferred income              2 722              2 099
Total Non-Current Liabilities            12 986            14 126
Current liabilities
Borrowings              6 973              6 906
Trade payables and other liabilities            12 452            12 227
Deferred income                  575                  419
Total Current Liabilities            20 000            19 552
TOTAL LIABILITIES            32 986            33 678
TOTAL EQUITY AND LIABILITIES          115 311          106 723

 

Consolidated statement of comprehensive income Group Group
Q2 2015 Q2 2014 6M 2015 6M 2014
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue

23 045

25 249 50 069 48 563
Cost of goods sold (8 052) (7 684) (16 242) (15 271)
Gross Profit 14 993 17 565 33 827  33 292
Selling expense (6 433) (6 689) (13 552)

(13 151)

Administrative expense (4 092) (3 880) (8 218) (7 873)
Other operating income  736  484 1 328  981
Other operating expense (2 076) (1 587) (3 702) (2 001)
Share of profit of an associate 23 71 95 93
Financial income 268 156 2 258 82
Financial expense (55) (74) (111) (894)
Profit Before Tax 3 364 6 046 11 925 10 529
Corporate income tax (738) (996) (2 510) (1 679)
Deferred corporate income tax (21) 182 (135) 59
PROFIT FOR THE REPORTING PERIOD 2 605 5 232 9 280 8 909
Other comprehensive income for the reporting period
Total comprehensive income for the reporting period 2 605 5 232 9 280 8 909
Total comprehensive income attributable to:
The equity holders of the Parent Company 2 605 5 272 9 276 8 926
Non-controlling interests (40) 4 (17)
Basic and diluted earnings per share, EUR 0.18 0.37 0.66 0.63

 

 

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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SigitaProfit of Olainfarm in Six Months Reaches 9.3 Million Euros