Consolidated profit and loss statement of JSC Olainfarm for three quarters of 2010 shows that the net profit of the company was 2.84 million lats (4.04 million euro). This represents an increase of 122% in profits and of 24% in sales compared to nine months of 2009. In the third quarter alone profit of JSC Olainfarm was by 130% bigger that during the third quarter of 2009 and reached 1.04 million lats (1.49 million euro). These results reflect the successful operations of Olainfarm on foreign markets, returns from investments in product promotion, new products and launches in new markets.
“This has clearly been the best third quarter in history of the Company. 2010 is particularly successful year for Olainfarm, as in nine months we have exceeded the profit target for the year. Besides, increase in exports has allowed us to reduce prices for our products in Latvia, thus making them more affordable for people. Financial results make us set even higher goals and push the growth levels further,” says Valerijs Maligins, Chairman of the Board of JSC Olainfarm.
Unaudited profit and loss statement of JSC Olainfarm for nine months of 2010 shows that the sales of group reached 18.84 million lats (26.81 million euro), which is an increase by 24% compared to nine months of 2009 when the sales were 15.19 million lats (21.62 million euro). Groups after tax profit during this period was 2.84 million lats (4.04 million euro). This is by 122% more than during similar period last year, when the net profir of JSC Olainfarm was 1.28 million lats (1.82 million euro).
During the reporting period significant increases in sales continues in all key markets of Company, except Latvia. Sales to Uzbekistan grew by 154%, to Moldova by 92%, Belarus by 56%, Kazakhstan by 54%, Georgia by 33%, Russia by 30%, and Ukraine by 24%. Sales grew by 3% even in Lithuania where there was actually a decrease in sales in 6 months of 2010 compared to 6 months of 2009. Sales in Latvia are also gradually recovering, compared to the previous quarters of this year and Latvia has become the fourth biggest market for the Company.
Annual General Meeting of Shareholders of Olainfarm held on April 29, 2010 approved the operating plan of the company. According to it, the forecast sales of the Concern for 2010 are 24.5 million lats (34.9 million Euro), but the net profit is forecast at 2.7 million lats (3.8 million Euro). During the first nine months of 2001 Company’s sales were 77% of the annual target, while the net profit reached 105% of annual target. Therefore in terms of sales the Company operates rather closely to the plan, while in terms of the net profit it has in nine months exceeded its target for the entire year.
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:
Member of the Board
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