Sales of Olainfarm in Nine Months Reached 78.7 Million Euros

Unaudited income statement of AS Olainfarm for nine months of 2016 shows that with sales of 78.7 million euros, the group has experienced its best nine months in terms of sales. Sales have increased by 9% compares to the same period of 2015. Profit of AS Olainfarm during this period was 7.8 million euros, whish represents a reduction by 36% compared to 2015. Major sales markets during this period were Russia, Latvia, Ukraine and Belarus


Olaine, 2016-11-30 17:45 CET (GLOBE NEWSWIRE) -- This third quarter was also the best third quarter in corporate history, as the sales reached 25.2 million euros, whish represents an increase by 15% compared to the third quarter of 2015.  The net profit of the third quarter was 1.66 million euros, which is by 41% less than during the third quarter of 2015.  The profit was adversely influenced by provisions of 2.2 million euros for Ukrainian and Russian receivables and for potential value impairment of investments in Belarussian company NPK Biotest.

 

„Success of Olainfarm in the near future will to a large extent depend on how well will we diversify our sales markets and products and how good we will be at maintaining our existing positions.  Therefore we continue with registration of products in existing and new markets and acquire pharma related companies, which help us expand our exports geographically. Within the next two years we will have to integrate acquired companies into our group, in order to use all opportunities provided by joint administrative, marketing and logistics structure,” says Salvis Lapins, Member of Olainfarm’s Board.

 

 

During the first nine months of 2016, sales to most of Company’s key markets continued growing, except Russia, where they fell by 7% compared to nine months of 2015, and The Netherlands, when they fell by as much as 67% during the same period. It should be noted, however, that partially shipments previously made to WHO in The Netherlands this year were shipped directly to Ukraine, thus increasing Ukrainian sales. The biggest sales increases were achieved in Uzbekistan (+72%), Turkmenistan and Ukraine (+38% each) and the UK (+24%).  In total in nine months, products of AS Olainfarm were sold to 39 countries in four continents.

 

 

During the nine months  period, registration processes continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam. Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Bosnia and Herzegovina. During the third quarter registration of tree food supplements have been completed in Lithuania.

 

Annual meeting of shareholders of A/s “Olainfarm” convened on June 7, 2016 approved operating plan of the Group for 2016.  According to it, sales of the Group in 2016 are planned to be 100 million euros, but the net profit will reach 10 million euros.  According to unaudited report for 9 months of 2016, during this period 79% of annual sales target and 78% of annual profit target is met.

 

 

 

 

 

 

Condensed Consolidated Statement of  Financial Position Group
    30.09.2016 31.12.2015
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           28 390           20 591
Property, plant and equipment           38 897           35 579
Financial assets             7 122             4 917
  TOTAL NON-CURRENT ASSETS           74 409           61 087
CURRENT ASSETS    
Inventories           22 989           20 990
Receivables           32 441           30 480
Cash             7 794             5 574
  TOTAL CURRENT ASSETS           63 224           57 044
TOTAL ASSETS         137 633         118 131
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           19 719
Share premium             2 504             2 504
Reserves                322                322
Retained earnings           70 988           65 773
Non-controlling interests                  39                  30
  TOTAL EQUITY           93 572           88 348
LIABILITIES    
Non-current liabilities    
Borrowings           18 201             8 560
Deferred corporate income tax             2 303             1 947
Deferred income             2 927             2 656
  Total Non-Current Liabilities           23 431           13 163
Current liabilities    
Borrowings             7 979             4 258
Trade payables and other liabilities           12 176           11 562
Deferred income                475                800
  Total Current Liabilities           20 630           16 620
  TOTAL LIABILITIES           44 061           29 783
TOTAL EQUITY AND LIABILITIES         137 633         118 131

 

 

 

 

 

 

Consolidated statement of comprehensive income Group Group
  Q3 2016 Q3 2015 9M 2016 9M 2015
  EUR '000 EUR '000 EUR '000 EUR '000
Net revenue        25 158        21 792        78 675        71 861
Cost of goods sold         (9 685)         (7 346)       (30 005)       (23 588)
Gross Profit        15 473        14 446        48 670        48 273
Selling expense         (6 716)         (6 638)       (21 340)       (20 081)
Administrative expense         (4 529)         (3 704)       (13 579)       (12 006)
Other operating income             427          1 371          1 923          2 307
Other operating expense         (2 400)            (272)         (6 651)         (3 607)
Share of profit of an associate              (12)              (17)               27               78
Income from investments in subsidiaries                  -                  -                  -                  -
Financial income               55               69          1 354             198
Financial expense              (98)         (2 226)            (207)            (208)
Profit Before Tax          2 200          3 029        10 197        14 954
Corporate income tax            (536)            (185)         (2 631)         (2 695)
Deferred corporate income tax                (7)              (19)             207            (154)
PROFIT FOR THE REPORTING PERIOD          1 657          2 825          7 773        12 105
Other comprehensive income for the reporting period                  -                  -                  -                  -
Total comprehensive income for the reporting period          1 657          2 825          7 773        12 105
Total comprehensive income attributable to:        
The equity holders of the Parent Company          1 653          2 823          7 764        12 099
Non-controlling interests                 4                 2                 9                 6
         
Basic and diluted earnings per share, EUR            0.12            0.20            0.55            0.86
         

 

 

 

 

 

 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_Ill_2016_consolidated FS_ENG.pdf