Olaine, 2015-04-30 16:02 CEST (GLOBE NEWSWIRE) --
Net after tax profit of the Group in 2014 was 12.23 million euro, which is a reduction by 0.3% compared to 2013, when Group’s profit was 12.6 million euros. Profit of the Company in 2014. was 11.4 million euro, which is a reduction by 11% compared to 2013. 2014 was the third best year in terms of profit in corporate history so far.
Payment discipline of one of the Russian based wholesaling partners Oriola has significantly deteriorated since the end of 2014 and because information available on the financial status of that company causes concerns regarding its ability to settle outstanding payments, the Company, and hence the Group, have made provisions of 979 thousand euros, which equals 100% of receivables due from Oriola.
During 2014 sales to all Group’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 the Group during 2014 were Russia, Latvia, Ukraine, Belarus and The Netherlands.
During 2014 sales to all Company’s main markets continued increasing except for the same markets of Kazakhstan, UK and Uzbekistan, where sales shrunk by 32%, 32% and 11% respectively. The most rapid Company sales increase during 2014 was achieved in Poland, where sales grew by impressive 1136%, 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 Tajikistan (by 70%) and Belarus (by 40%). Major sales markets of the Company during 2014 were Russia, Ukraine, Latvia, Belarus and The Netherlands.
Best selling products of the Company in 2014 were central nervous system medicines „Neiromidin”, „Noofen” un „Adaptol”, antibacterial product „Furamag” and antiarrhythmic product „Etacizin”.
During 2014 38 registration cases have been approved in several countries, including such untraditional countries for JSC 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.
In December of 2014 JSC Olainfarm established a fully owned subsidiary Olainfarm Azija in Kyrgyzstan and in March of 2015 – fully owned subsidiary Olainfarm Lithuania. Main operations of the newly established entities will be related to promotion of products made by the Group and its partners in these countries.
Annual meeting of shareholders of JSC Olainfarm held on April 29, 2014 approved operating plan of the Group and the Company. According to it, sales of the Group in 2014 were planned to be 93 million euros, but the net profit was to reach 15 million euros. According to this audited report for 2014, during this period 100.7% of annual sales target and 82% of annual profit target is met.
Sales and profit targets approved at the same AGM for the Company were 80 million and 14 million respectively. According to this audited report for 2014, in 2014 102% of annual sales target and 82% of Company’s annual were attained.
| Statement of comprehensive income | Group | Parent company | ||
| 2014 | 2013 | 2014 | 2013 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | |
| Net revenue | 93 654 | 77 956 | 81 625 | 66 879 |
| Cost of goods sold | (29 683) | (25 040) | (22 791) | (17 642) |
| Gross Profit | 63 971 | 52 916 | 58 834 | 49 237 |
| Selling expense | (28 037) | (23 507) | (23 683) | (20 141) |
| Administrative expense | (16 662) | (14 291) | (15 715) | (13 044) |
| Other operating income | 2 313 | 3 267 | 1 274 | 1 609 |
| Other operating expense | (3 354) | (2 464) | (2 998) | (1 496) |
| Share of profit of an associate | 153 | 208 | - | - |
| Financial income | 187 | 145 | 183 | 152 |
| Financial expense | (4 728) | (1 391) | (4 691) | (1 332) |
| Profit Before Tax | 13 843 | 14 883 | 13 204 | 14 985 |
| Corporate income tax | (2 266) | (2 151) | (2 247) | (2 008) |
| Deferred corporate income tax | 657 | (131) | 467 | (131) |
| PROFIT FOR THE REPORTING PERIOD | 12 234 | 12 601 | 11 424 | 12 846 |
| Other comprehensive income for the reporting period | - | - | - | - |
| Total comprehensive income for the reporting period | 12 234 | 12 601 | 11 424 | 12 846 |
| Total comprehensive income attributable to: | ||||
| The equity holders of the Parent Company | 12 237 | 12 732 | 11 424 | 12 846 |
| Non-controlling interests | (3) | (131) | - | - |
| Basic and diluted earnings per share, EUR | 0.87 | 0.90 | 0.81 | 0.91 |
| Condensed Statement of Financial Position | Group | Parent company | |||
| 31.12.2014 | 31.12.2013 | 31.12.2014 | 31.12.2013 | ||
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Intangible assets | 18 848 | 17 674 | 2 109 | 1 319 | |
| Property, plant and equipment | 34 674 | 26 923 | 33 252 | 25 187 | |
| Financial assets | 4 234 | 211 | 19 848 | 14 682 | |
| TOTAL NON-CURRENT ASSETS | 57 756 | 44 808 | 55 209 | 41 188 | |
| CURRENT ASSETS | |||||
| Inventories | 18 693 | 16 294 | 17 172 | 14 682 | |
| Receivables and prepayments | 27 354 | 30 289 | 28 534 | 30 574 | |
| Loans | 865 | 2 411 | 543 | 2 407 | |
| Cash | 2 055 | 2 026 | 1 745 | 1 617 | |
| TOTAL CURRENT ASSETS | 48 967 | 51 020 | 47 994 | 49 280 | |
| TOTAL ASSETS | 106 723 | 95 828 | 103 203 | 90 468 | |
| EQUITY AND LIABILITIES | |||||
| EQUITY | |||||
| Share capital | 20 041 | 20 041 | 20 041 | 20 041 | |
| Share premium | 2 504 | 2 504 | 2 504 | 2 504 | |
| Retained earnings | 50 492 | 39 364 | 51 355 | 39 931 | |
| Non-controlling interests | 8 | 78 | - | - | |
| TOTAL EQUITY | 73 045 | 61 987 | 73 900 | 62 476 | |
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Borrowings | 10 387 | 10 032 | 10 361 | 9 699 | |
| Deferred corporate income tax | 1 640 | 2 297 | 438 | 905 | |
| Deferred income | 2 099 | 535 | 2 032 | 435 | |
| Total Non-Current Liabilities | 14 126 | 12 864 | 12 831 | 11 039 | |
| Current liabilities | |||||
| Borrowings | 6 906 | 7 046 | 5 700 | 5 925 | |
| Trade and other payables | 9 117 | 11 627 | 7 598 | 9 243 | |
| Taxes payable | 745 | 656 | 666 | 476 | |
| Deferred income | 419 | 174 | 402 | 159 | |
| Accrued liabilities | 2 365 | 1 474 | 2 106 | 1 150 | |
| Total Current Liabilities | 19 552 | 20 977 | 16 472 | 16 953 | |
| TOTAL LIABILITIES | 33 678 | 33 841 | 29 303 | 27 992 | |
| TOTAL EQUITY AND LIABILITIES | 106 723 | 95 828 | 103 203 | 90 468 | |
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
