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Last Year Olainfarm Sets a New Profit Record of 15.3 Million Euros

on April 29, 2016

Audited consolidated profit and loss account of JSC Olainfarm for 2015 shows that consolidated net profit was 15.3 million euros. This represents an increase by 25% compared to the net profit of 2014 and by 8% compared to the net profit of 2012, when the previous profit record was set. Parent company’s net profit in 2015 was 14.6 million euros, which represents an increase by 28% compared to the net profit of 2014.

Sales of the Group in 2015 reached 97.4 million euros, which represents an increase by 4% compared to 2014, when sales of the Group were 93.7 million euros and is the highest sales number ever reached by the group so far. Sales of the Parent company in 2015 were 84.7 million euros, which also represents an increase by 4% compared to 2014, when Parent company made sales of 81.6 million euros.

The biggest consolidated sales increase (by 107%) was achieved in The Netherlands, where products for WHO’s Anti-Tuberculosis program are shipped. Sales in Tajikistan increased by 39%, sales to Latvia by 11%. The major sales markets of the Group in 2015 were Russia, Latvia, Ukraine, Belarus and The Netherlands

The biggest Parent company’s sales increase in 2015 was achieved in The Netherlands where sales grew by 107%. Sales to Turkmenistan grew by 46%, but sales to Tajikistan grew by 39%. Significant sales growth has also been achieved in Latvia where sales of the Parent company increased by 25%. Major sales markets of Parent company of JSC Olainfarm in 2015 were Russia, Latvia, Ukraine Belarus and The Netherlands.

The best sold company’s products in 2015 were neurological products “Neiromidin”, “Noofen” and “Adaptol”, anti-tuberculosis product “PASA Sodium”, Antibacterial products „Furamag” and “Furasol”, antiarrhythmic products “Etacizin” and antihistamine product “Fenkarol”.

During the reporting period, registration processes have been launched in Bosnia and Herzegovina, Vietnam, Myanmar; GMP audit by Turkish pharmaceutical authorities has been passed, and bioavailability tests for Turkish registration completed, allowing the Parent 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. Food supplement “Jogurt Babydrops” has been registered in the Baltics and is planned for further registration in 14 countries.

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 audited report for 2015, during this period 97.4% of annual sales target and 101.9% of annual profit target is met. The same meeting approved targets for Parent company’s operations, stating that Parent company’s sales target is 87 million euros, but the profit target is 14 million euros. According to these accounts, Parent company met 97.4% of sales target but exceeded its profit target by 4%.

Statement of Financial Position Group Parent company
31.12.2015 31.12.2014 31.12.2015 31.12.2014
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
     ASSETS
NON-CURRENT ASSETS
Intangible assets 20 591 18 848 2 210 2 109
Property, plant and equipment 35 579 34 674 34 047 33 252
Financial assets 4 910 4 234 22 382 19 848
TOTAL NON-CURRENT ASSETS 61 080 57 756 58 639 55 209
CURRENT ASSETS
Inventories 20 990 18 693 18 979 17 172
Receivables 30 487 28 219 31 178 29 077
Cash 5 574 2 055 5 015 1 745
TOTAL CURRENT ASSETS 57 051 48 967 55 172 47 994
TOTAL ASSETS 118 131 106 723 113 811 103 203
EQUITY AND LIABILITIES
EQUITY
Share capital 19 719 20 041 19 719 20 041
Share premium 2 504 2 504 2 504 2 504
Reserves 322 322
Retained earnings 65 773 50 492 65 921 51 355
Non-controlling interests 30 8
TOTAL EQUITY 88 348 73 045 88 466 73 900
LIABILITIES
Non-current liabilities
Borrowings 8 560 10 387 8 051 10 361
Deferred corporate income tax 1 947 1 640 635 438
Deferred income 2 656 2 099 2 604 2 032
Total Non-Current Liabilities 13 163 14 126 11 290 12 831
Current liabilities
Borrowings 4 258 6 906 3 593 5 700
Trade payables and other liabilities 11 562 12 227 9 677 10 370
Deferred income 800 419 785 402
Total Current Liabilities 16 620 19 552 14 055 16 472
TOTAL LIABILITIES 29 783 33 678 25 345 29 303
TOTAL EQUITY AND LIABILITIES 118 131 106 723 113 811 103 203

 

Statement of comprehensive income Group Parent company
2015 2014 2015 2014
EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue 97 392 93 654 84 746 81 625
Cost of goods sold (32 315) (29 683) (25 979) (22 791)
Gross Profit 65 077 63 971 58 767 58 834
Selling expense (28 202) (28 356) (23 742) (24 063)
Administrative expense (18 965) (16 198) (18 118) (15 286)
Other operating income 2 715 1 788 2 487 1 274
Other operating expense (1 957) (2 974) (1 864) (3 047)
Share of profit of an associate 118 153
Income from investments in subsidiaries 300
Financial income 262 187 261 183
Financial expense (1 404) (4 728) (1 352) (4 691)
Profit Before Tax 17 644 13 843 16 739 13 204
Corporate income tax (2 110) (2 266) (1 976) (2 247)
Deferred corporate income tax (245) 657 (197) 467
PROFIT FOR THE REPORTING PERIOD 15 289 12 234 14 566 11 424
Other comprehensive income for the reporting period
Total comprehensive income for the reporting period 15 289 12 234 14 566 11 424
Total comprehensive income attributable to:
The equity holders of the Parent Company 15 281 12 237 14 566 11 424
Non-controlling interests 8 (3)
Basic and diluted earnings per share, EUR 1.08 0.87 1.03 0.81

 

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 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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