Olaine, March 11, 2014, 2014-03-12 07:36 CET (GLOBE NEWSWIRE) -- He also informed that the Government of Latvia has agreed to provide a tax rebate for AS “Olainfarm”, if company executes certain CAPEX program. Currently the CAPEX plan for the two years to come amounts to 40 million euros. The investments will be made in building a new production site and energy efficiency improvements (cooling station etc). Also in long term AS “Olainfarm” considers a possibility to make an acquisition of a pharmaceutical company doing its business outside CIS region but does not have any specific plans yet.
According to Salvis Lapiņš considering AS “Olainfarm” investment plans the Board of the company will propose to put dividend payments on hold for the profits of 2013 and 2014 and to restart it from the profits made in 2015, with a payout ratio of 17.5%
As for sales -very preliminary data shows, that sales to Ukraine in February were in the area of 700 000 EUR. For internal planning purposes AS “Olainfarm” plans a short term stop in growth of sales in Russia and the sales of about 0.7 to 1 million euros a month to Ukraine.
Answering the questions sent in by the investors, Salvis Lapiņš provided information about the patents, indicating that in total company has 13 patents with different validity periods, starting with 4 and up to 18 years. He also confirmed that the topic of company’s share split is still to be discussed and AS “Olainfarm” might come back to this in autumn.
The recorded “Olainfarm” webinar is available online: http://ej.uz/Olainfarm_4Q_2014, and the presentation, demonstrated during the webinar, can be found in the previously published AS “Olainfarm” announcement: https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=598440&messageId=740791
Olainfarm thanks all participants, who joined the webinar, and encourages everybody to follow company’s announcements to get information on the next webinar!
A/s OlainFarm is one of the biggest pharmaceutical companies in Latvia with 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 30 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by:
Member of the Board
Tel: +371 6 7013 717
Cell: +371 2 6448 873