Nine Months Sales of Olainfarm: 71.9 Million Euros

Unaudited profit and loss account of AS Olainfarm for nine months of 2015 shows that with the sales worth 71.9 million euros, the Group has experiences the best nine months in its corporate history. Sales have increased by 3%, while profit has remained almost unchanged, as it has shrunk by 1000 euros and equals 12.105 million euros. Main sales markets of AS Olainfarm during this period were Russia, Latvia, Ukraine, Belarus and The Netherlands.

| Source: Olainfarm Olainfarm

Olaine, 2015-11-30 16:14 CET (GLOBE NEWSWIRE) -- 3rd quarter of 2015 has in terms of sales been the best third quarter in corporate history, as sales of the Group reached 21.8 million euros, which exceeds the sales made during 3rd quarter of 2014 by more than 2%.  During this period the company made a net profit of 2.8 million euros, which represents a reduction by 12% compared to the same period of last year.

 

Condensed Consolidated Statement of  Financial Position Group
    30.09.2015 31.12.2014
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           20 063           18 848
Property, plant and equipment           36 501           34 674
Financial assets             4 085             4 234
  TOTAL NON-CURRENT ASSETS           60 649           57 756
CURRENT ASSETS    
Inventories           20 013           18 693
Receivables           33 023           28 219
Cash             2 489             2 055
  TOTAL CURRENT ASSETS           55 525           48 967
TOTAL ASSETS         116 174         106 723
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           20 041
Share premium             2 504             2 504
Reserves                322                     -
Retained earnings           62 591           50 492
Non-controlling interests                  28                    8
  TOTAL EQUITY           85 164           73 045
LIABILITIES    
Non-current liabilities    
Borrowings             9 761           10 387
Deferred corporate income tax             1 830             1 640
Deferred income             2 706             2 099
  Total Non-Current Liabilities           14 297           14 126
Current liabilities    
Borrowings             4 957             6 906
Trade payables and other liabilities           11 177           12 227
Deferred income                579                419
  Total Current Liabilities           16 713           19 552
  TOTAL LIABILITIES           31 010           33 678
TOTAL EQUITY AND LIABILITIES         116 174         106 723

 

 

Consolidated statement of comprehensive income Group Group
  Q3 2015 Q3 2014 M9 2015 M9 2014
  EUR '000 EUR '000 EUR '000 EUR '000
Net revenue        21 792        21 328        71 861        69 891
Cost of goods sold         (7 346)         (7 647)       (23 588)       (22 918)
Gross Profit        14 446        13 681        48 273        46 973
Selling expense         (6 732)         (6 466)       (20 284)       (19 617)
Administrative expense         (3 633)         (3 315)       (11 851)       (11 188)
Other operating income          1 159             533          2 487          1 514
Other operating expense              (37)            (870)         (3 739)         (2 871)
Share of profit of an associate              (17)               23               78             116
Financial income               69               42             198             124
Financial expense         (2 226)            (272)            (208)         (1 166)
Profit Before Tax          3 029          3 356        14 954        13 885
Corporate income tax            (185)            (455)         (2 695)         (2 134)
Deferred corporate income tax              (19)             296            (154)             355
PROFIT FOR THE REPORTING PERIOD          2 825          3 197        12 105        12 106
Other comprehensive income for the reporting period                  -                  -                  -                  -
Total comprehensive income for the reporting period          2 825          3 197        12 105        12 106
Total comprehensive income attributable to:        
The equity holders of the Parent Company          2 823          3 180        12 099        12 106
Non-controlling interests                 2               17                 6                 -
         
Basic and diluted earnings per share, EUR            0.20            0.23            0.86            0.86

 

 

 

“Successful operations in Latvia and Lithuania and good cooperation with the World Health Organization’s anti-tuberculosis program are the key driving forces behind these record sales. However, we realize that continuing with such series of records becomes increasingly difficult as new challenges are appearing in several important CIS markets. In addition to economic instability and depreciating local currencies have left a significant impact on purchasing power of local population.  In addition to these factors, governments of CIS countries use administrative methods to limit imports of different products, including pharmaceuticals.  Therefore we have to continue searching for possibilities to further diversify our sales markets and strengthen our presence there”, says Salvis Lapins, Member of company’s Board.

During nine months of 2015 Company’s sales grew in Latvia (by 9%), The Netherlands (WHO shipments, by 181%), Kazakhstan (by 2%), Lithuania (by 185), and other countries (by 28% on average). Sales have been shrinking to Ukraine (by 15%), Belarus (by 7%), UK (by 9%), Uzbekistan (by 6%) and Russia (by 3%).  In total, during this nine months period AS Olainfarm was selling its products to 41 countries on five continents.

 

 

During the 3rd quarter, 5 registration processes have been completed in Azerbaijan, Ukraine and Romania.  A food supplement “Jogurt Babydrops” has been registered in Latvia. Further extension of “Gripoflex” line has been launched.  

 

Annual meeting of shareholders of A/s “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 unaudited report for 9 months of 2015, during this period 72% of annual sales target and 81% of annual profit target is met.

 

 

 

 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

Attachments

Olainfarm_III_2015_consolidated FS_ENG.pdf