Olaine, 2015-02-28 12:02 CET (GLOBE NEWSWIRE) -- Net profit of the Group in 2014 was 12.66 million euros, which is an increase by 0.5% compared to 2013, when profit of AS “Olainfarm” was 12,6 million euros.
“Although we have managed to set yet another sales record in history of „Olainfarm”, significant changes in almost all of our key markets, including difficulty to deliver our products to several regions of Ukraine, currency devaluations in Ukraine, Russia, Kazakhstan and Belarus, prevented us from attaining the profit guidance. Instability in these important markets makes us put even more effort to star selling our final dosage and chemical products in other regions and pay a lot more attention at identification of potential acquisition targets, which have less dependency on CIS markets,” says Valerijs Maligins, Chairman of the Board of AS “Olainfarm".
During 2014 sales to all company’s main markets continued increasing except for Kazakhstan, UK and Uzbekistan, where sales shrunk by 32%, 32% and 11% respectively. The most rapid sales increase during 2014 was achieved in Poland, where sales grew by 434%, and in The Netherlands, where products of WHO’s anti-tuberculosis program are being shipped. Sales to The Netherlands grew by 192%. Significant sales growth has also been achieved in Lithuania (by 60%) and Belarus (by 40%). Major sales markets of AS “Olainfarm” during 2014 were Russia, Latvia, Ukraine, Belarus and The Netherlands.
During 2014 38 registration cases have been approved in several countries, including such untraditional countries for AS “Olainfarm” as Peru, Mongolia, Bhutan, Romania and Kosovo. Several products are still in the process of obtaining MAs, among other countries, in Turkey, registration processes have been launched in Bosnia and Herzegovina and other new markets. Preclinical trials of R-fenotropil are being conducted and totally new forms and line extensions of existing products are being developed. Among other things the company works at development of a new nootropic medication, new product of nitrofurantoin group and a new food supplement.
Annual meeting of shareholders of A/s “Olainfarm” held on April 29, 2014 approved operating plan of the Group. According to it, sales of the Group in 2014 are planned to be 93 million euros, but the net profit will reach 15 million euros. According to this unaudited report for 2014, during this period 100.7% of annual sales target and 84% of annual profit target is met.
| Interim consolidated statement of comprehensive income | ||||
| Q4 2014 | Q4 2013 | 2014 | 2013 | |
| EUR '000 | ||||
| Net revenue | 23 764 | 24 320 | 93 655 | 77 956 |
| Cost of goods sold | (6 571) | (6 625) | (29 489) | (24 962) |
| Gross Profit | 17 193 | 17 695 | 64 166 | 52 994 |
| Selling expense | (8 329) | (8 176) | (27 946) | (22 968) |
| Administrative expense | (4 841) | (5 113) | (16 895) | (14 731) |
| Other operating income | 605 | 797 | 2 119 | 3 121 |
| Other operating expense | (195) | (490) | (2 200) | (2 496) |
| Share of profit of an associate | 37 | 208 | 153 | 208 |
| Financial income | 63 | 52 | 187 | 145 |
| Financial expense | (3 562) | (450) | (4 728) | (1 390) |
| Profit Before Tax | 971 | 4 523 | 14 856 | 14 883 |
| Corporate income tax | (91) | (613) | (2 225) | (2 151) |
| Deferred corporate income tax | (324) | (131) | 31 | (131) |
| PROFIT FOR THE REPORTING PERIOD | 556 | 3 779 | 12 662 | 12 601 |
| Other comprehensive income for the reporting period | - | - | - | - |
| Total comprehensive income for the reporting period | 556 | 3 779 | 12 662 | 12 601 |
| Total comprehensive income attributable to: | ||||
| The equity holders of the Parent Company | 558 | 3 901 | 12 664 | 12 732 |
| Non-controlling interests | (2) | (122) | (2) | (131) |
| Basic and diluted earnings per share, EUR | 0.04 | 0.28 | 0.90 | 0.90 |
| Interim Consolidated Statement of Financial Position, Condensed | |||
| 31.12.2014 | 31.12.2013 | ||
| EUR '000 | |||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 18 484 | 17 674 | |
| Property, plant and equipment | 34 674 | 26 923 | |
| Financial assets | 364 | 211 | |
| TOTAL NON-CURRENT ASSETS | 53 522 | 44 808 | |
| CURRENT ASSETS | |||
| Inventories | 18 692 | 16 294 | |
| Receivables and prepayments | 28 693 | 30 454 | |
| Loans | 4 279 | 2 175 | |
| Cash | 2 141 | 2 097 | |
| TOTAL CURRENT ASSETS | 53 805 | 51 020 | |
| TOTAL ASSETS | 107 327 | 95 828 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 20 041 | 20 041 | |
| Share premium | 2 504 | 2 504 | |
| Retained earnings | 50 919 | 39 364 | |
| Non-controlling interests | 9 | 78 | |
| TOTAL EQUITY | 73 473 | 61 987 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 10 363 | 10 031 | |
| Deferred corporate income tax | 2 266 | 2 297 | |
| Deferred income | 2 054 | 535 | |
| Total Non-Current Liabilities | 14 683 | 12 863 | |
| Current liabilities | |||
| Borrowings | 6 929 | 7 046 | |
| Trade and other payables | 8 027 | 11 628 | |
| Taxes payable | 748 | 656 | |
| Deferred income | 1 466 | 174 | |
| Accrued liabilities | 2 001 | 1 474 | |
| Total Current Liabilities | 19 171 | 20 978 | |
| TOTAL LIABILITIES | 33 854 | 33 841 | |
| TOTAL EQUITY AND LIABILITIES | 107 327 | 95 828 | |
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
