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Consolidated Sales of Olainfarm in Six Months Exceed 62 Million

on August 31, 2017

Unaudited consolidated Income Statement of JSC Olainfarm for first six months of 2017 shows that the sales of the Group have reached 62.7 million euros, which represents an increase by 17% compared to the same period of 2016. This makes it yet another best half-year in corporate history in terms of sales. The net profit of 6 months was 5.7 million euros, which represents a reduction by 7% compared to the first half of 2016. Sales costs in 6 months of 2017 have increased by 4 million, and foreign exchange fluctuations caused another million euros loss. The major sales markets of JSC Olainfarm during this period were Russia, Latvia, Belarus and Ukraine.

Second quarter of 2017 has, in terms of sales, been the best quarter in corporate history as sales during this period have increased by 25% and reached 34.1 million. Main contributors to such growth have been significant shipments of PASA to The World Health Organization and serious sales increases in Latvia and Uzbekistan.

During the first six months period of 2017, sales to all major markets of JSC Olainfarm continued increasing, except Ukraine, where they shrunk by 40%, and Uzbekistan, where they shrunk by 21%. Significant sales increases have been achieved to The Netherland, where sales grew by 600%, Italy (by 56%) and Kazakhstan (by 55%). During the first six months of 2017 products of JSC Olainfarm were sold to 41 countries in five continents.

Two best selling Olainfarm products during this period were CNS medicines Neiromidin and Noofen. Compared to the last year, share of products of soluble furaginum in total sales has slightly increased, while share of Adaptol has decreased from 14% to 11%. Remantadin has again made it to top ten best selling products of Olainfarm.

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, Cameroon and Vietnam. Registration of medicines produced by NPK Biotest are started in Belarus. Parent company itself has submitted one more dossier in Turkey and is soon expected to launch several painkilling and anti-inflammatory medicines.

Annual meeting of shareholders of JSC Olainfarm convened on June 1, 2017 approved 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 first half of 2017, during the first six months 49.3% of annual sales target and 36.8% of annual profit target is met. Taking into account a considerable deviation in schedule to achieving the profit target, the Board will soon decide on reviewing Groups profit Target.

Condensed Consolidated Statement of   Financial Position Group
30.06.2017 31.12.2016
EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets          37 917          31 860
Property, plant and equipment          41 857          40 943
Investment properties            1 963            1 963
Financial assets            4 725            6 514
TOTAL NON-CURRENT ASSETS          86 462          81 280
CURRENT ASSETS
Inventories          25 145          24 011
Receivables          36 579          36 124
Cash            4 900            3 165
TOTAL CURRENT ASSETS          66 624          63 300
TOTAL ASSETS        153 086        144 580
EQUITY AND LIABILITIES
EQUITY
Share capital          19 719          19 719
Share premium            2 504            2 504
Reserves                  40                322
Retained earnings          70 760          74 081
Non-controlling interests                  39                  37
TOTAL EQUITY          93 062          96 663
LIABILITIES
Non-current liabilities
Borrowings          20 152          18 800
Deferred corporate income tax            3 208            3 025
Deferred income            2 584            2 810
Total Non-Current Liabilities          25 944          24 635
Current liabilities
Borrowings            8 255            7 020
Trade payables and other liabilities          25 337          15 769
Deferred income                488                493
Total Current Liabilities          34 080          23 282
TOTAL LIABILITIES          60 024          47 917
TOTAL EQUITY AND LIABILITIES        153 086        144 580

 

Consolidated statement of comprehensive income Group Group
Q2 2017 Q2 2016 M6 2017 M6 2016
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
34 148 27 387 62 719 53 517
Net revenue (12 467) (10 412) (23 930) (20 320)
Cost of goods sold 21 681 16 975 38 789 33 197
Gross Profit (10 606) (7 779) (18 631) (14 624)
Selling expense (6 035) (4 584) (11 449) (9 050)
Administrative expense 572 891 1 021 1 496
Other operating income (855) (2 496) (1 598) (4 251)
Other operating expense 28 22 60 39
Share of profit of an associate 79 1 042 156 1 299
Financial income (2 319) (69) (1 340) (109)
Financial expense 2 545 4 002 7 008 7 997
Profit Before Tax (569) (1 081) (1 408) (2 095)
Corporate income tax 49 82 103 214
Deferred corporate income tax 2 025 3 003 5 703 6 116
PROFIT FOR THE REPORTING PERIOD
Other comprehensive income for the reporting period 2 025 3 003 5 703 6 116
Total comprehensive income for the reporting period
Total comprehensive income attributable to: 2 028 3 003 5 701 6 111
The equity holders of the Parent Company (3) 2 5
Non-controlling interests
0.14 0.21 0.40 0.43
Basic and diluted earnings per share, EUR

 

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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