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Sales of Olainfarm in Nine Months Reached 78.7 Million Euros

on November 30, 2016

Unaudited income statement of JSC Olainfarm for nine months of 2016 shows that with sales of 78.7 million euros, the group has experienced its best nine months in terms of sales. Sales have increased by 9% compared to the same period of 2015. Profit of JSC Olainfarm during this period was 7.8 million euros, whish represents a reduction by 36% compared to 2015. Major sales markets during this period were Russia, Latvia, Ukraine and Belarus

This third quarter was also the best third quarter in corporate history, as the sales reached 25.2 million euros, whish represents an increase by 15% compared to the third quarter of 2015. The net profit of the third quarter was 1.66 million euros, which is by 41% less than during the third quarter of 2015. The profit was adversely influenced by provisions of 2.2 million euros for Ukrainian and Russian receivables and for potential value impairment of investments in Belarussian company NPK Biotest.

„Success of Olainfarm in the near future will to a large extent depend on how well will we diversify our sales markets and products and how good we will be at maintaining our existing positions. Therefore we continue with registration of products in existing and new markets and acquire pharma related companies, which help us expand our exports geographically. Within the next two years we will have to integrate acquired companies into our group, in order to use all opportunities provided by joint administrative, marketing and logistics structure,” says Salvis Lapins, Member of Olainfarm’s Board.

During the first nine months of 2016, sales to most of Company’s key markets continued growing, except Russia, where they fell by 7% compared to nine months of 2015, and The Netherlands, when they fell by as much as 67% during the same period. It should be noted, however, that partially shipments previously made to WHO in The Netherlands this year were shipped directly to Ukraine, thus increasing Ukrainian sales. The biggest sales increases were achieved in Uzbekistan (+72%), Turkmenistan and Ukraine (+38% each) and the UK (+24%). In total in nine months, products of JSC Olainfarm were sold to 39 countries in four continents.

During the nine months period, registration processes continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam. Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Bosnia and Herzegovina. During the third quarter registration of tree food supplements have been completed in Lithuania.

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 unaudited report for 9 months of 2016, during this period 79% of annual sales target and 78% of annual profit target is met.

 

Condensed Consolidated Statement of Financial Position Group
30.09.2016. 31.12.2015.
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets 28 390 20 591
Property, plant and equipment 38 897 35 579
Financial assets 7 122 4 917
TOTAL NON-CURRENT ASSETS 74 409 61 087
CURRENT ASSETS
Inventories 22 989 20 990
Receivables 32 441 30 480
Cash 7 794 5 574
TOTAL CURRENT ASSETS 63 224 57 044
TOTAL ASSETS 137 633 118 131
           EQUITY AND LIABILITIES
EQUITY
Share capital 19 719 19 719
Share premium 2 504 2 504
Reserves 322 322
Retained earnings 70 988 65 773
Non-controlling interests 39 30
TOTAL EQUITY 93 572 88 348
LIABILITIES
Non-current liabilities
Borrowings 18 201 8 560
Deferred corporate income tax 2 303 1 947
Deferred income 2 927 2 656
Total Non-Current Liabilities 23 431 13 163
Current liabilities
Borrowings 7 979 4 258
Trade payables and other liabilities 12 176 11 562
Deferred income 475 800
Total Current Liabilities 20 630 16 620
TOTAL LIABILITIES 44 061 29 783
TOTAL EQUITY AND LIABILITIES 137 633 118 131

 

Consolidated statement of comprehensive income Group Group
Q3 2016 Q3 2015 9M 2016 9M 2015
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue 25 158 21 792 78 675 71 861
Cost of goods sold (9 685) (7 346) (30 005) (23 588)
Gross Profit 15 473 14 446 48 670 48 273
Selling expense (6 716) (6 638) (21 340) (20 081)
Administrative expense (4 529) (3 704) (13 579) (12 006)
Other operating income 427 1 371 1 923 2 307
Other operating expense (2 400) (272) (6 651) (3 607)
Share of profit of an associate (12) (17) 27 78
Income from investments in subsidiaries
Financial income 55 69 1 354 198
Financial expense (98) (2 226) (207) (208)
Profit Before Tax 2 200 3 029 10 197 14 954
Corporate income tax (536) (185) (2 631) (2 695)
Deferred corporate income tax (7) (19) 207 (154)
PROFIT FOR THE REPORTING PERIOD 1 657 2 825 7 773 12 105
Other comprehensive income for the reporting period
Total comprehensive income for the reporting period 1 657 2 825 7 773 12 105
Total comprehensive income attributable to:
The equity holders of the Parent Company 1 653 2 823 7 764 12 099
Non-controlling interests 4 2 9 6
Basic and diluted earnings per share, EUR 0.12 0.20 0.55 0.86

 

olainfarm_ill_2016_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
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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SigitaSales of Olainfarm in Nine Months Reached 78.7 Million Euros