Olainfarm Demonstrates Consolidated Record Sales, Board Proposes Dividends

Consolidated profit and loss account of AS Olainfarm for 2016 shows that with the sales of 111.2 million euros, the Group has set the new record sales. Last year the sales grew by 14% compared to 2015. Net profit in 2016 was 10.1 million euros, which is reduction by a third comparing to 2015, when the net profit was as high as 15.2 million. Profit of 2016 was very significantly influenced by provisions for receivables. The total of about 7 million euros were left for provisions. Board of AS Olainfarm proposed a dividend of 0.66 euros per share from the profit of Parent company for 2016. Should it be necessary, undistributed profits of other years may also be used. The Board proposes that dividends are paid in three equal installments at the ends of second, third and fourth quarter of 2017 respectively.

| Source: Olainfarm Olainfarm

Olaine, 2017-02-28 17:29 CET (GLOBE NEWSWIRE) -- “2016 was important for Olainfarm not only because we acquired four new daughter companies, but also with the sales record we achieved as we surpassed the mark of 100 million.  In order to raise our targets every year, we have to get stronger every year.  Therefore we focus on integrating the daughter companies into our group, expand our product portfolio, strengthen our positions in existing markets and enter the new ones.  We also keep searching for new acquisition targets in different pharma related sectors," says Valerijs Maligins, Chairman of Olainfarm’s Board.

 

 

In terms of sales, fourth quarter of 2016 is again by far the best in corporate history.   During the fourth quarter of 2016, sales volumes have increased by 27% compared to similar period of 2015 and reached 32.6 million euro. Profit during this quarter reached 2.3 million, which is a reduction by 13% compared to the fourth quarter of 2015.  In fourth quarter alone provisions of 2.47 were made.

 

 

The biggest sales increase in 2016 was achieved in Uzbekistan, where sales increased by 65%. During 2016, compared to its nine months share of Russia in totals sales grew significantly (from 29% to 34%). This was facilitated by particularly large sales volumes to this country during the fourth quarter.  Share of Ukraine has dropped by 3 percentage points during the same period.  Shares of other markets have remained relatively unchanged. The biggest sales markets in 2016 were Russia, Latvia, Ukraine and Belarus.

 

During the reporting period, registration processes of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Ukraine, Mongolia, Armenia, Turkmenistan and Bosnia and Herzegovina. During the fourth quarter alone registration of ten products in five countries has been completed. Registration processes of a few more products have been started in Turkey.

 

Annual meeting of shareholders of AS 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 this unaudited report for 2016, during this period 111% of annual sales target and 101% of annual profit target is met.

 

Condensed Consolidated Statement of  Financial Position Group
    31.12.2016 31.12.2015
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           31 859           20 591
Property, plant and equipment           40 946           35 579
Investment properties             2 200                     -
Financial assets             6 244             4 917
  TOTAL NON-CURRENT ASSETS           81 249           61 087
CURRENT ASSETS    
Inventories           24 135           20 990
Receivables           36 455           30 480
Cash             3 166             5 574
  TOTAL CURRENT ASSETS           63 756           57 044
TOTAL ASSETS         145 005         118 131
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           19 719
Share premium             2 504             2 504
Reserves                322                322
Retained earnings           72 581           65 773
Non-controlling interests                  37                  30
  TOTAL EQUITY           95 163           88 348
LIABILITIES    
Non-current liabilities    
Borrowings           19 846             8 560
Deferred corporate income tax             2 685             1 947
Deferred income             2 810             2 656
  Total Non-Current Liabilities           25 341           13 163
Current liabilities    
Borrowings             5 974             4 258
Trade payables and other liabilities           18 034           11 562
Deferred income                493                800
  Total Current Liabilities           24 501           16 620
  TOTAL LIABILITIES           49 842           29 783
TOTAL EQUITY AND LIABILITIES         145 005         118 131

 

 

 

 

 

 

Consolidated statement of comprehensive income Group Group
  Q4 2016 Q4 2015 12M 2016 12M 2015
  EUR '000 EUR '000 EUR '000 EUR '000
Net revenue        32 600        25 531      111 275        97 392
Cost of goods sold       (11 233)         (8 727)       (41 238)       (32 315)
Gross Profit        21 367        16 804        70 037        65 077
Selling expense       (12 542)         (8 121)       (33 882)       (28 202)
Administrative expense         (5 767)         (6 959)       (19 346)       (18 965)
Other operating income          1 028          2 355          2 951          2 715
Other operating expense         (2 776)            (297)         (9 427)         (1 957)
Share of profit of an associate               38               40               65             118
Income from investments in subsidiaries                  -                  -                  -                  -
Financial income          2 103               64          3 457             262
Financial expense            (100)         (1 196)            (307)         (1 404)
Profit Before Tax          3 351          2 690        13 548        17 644
Corporate income tax            (719)             585         (3 350)         (2 110)
Deferred corporate income tax            (319)              (91)            (112)            (245)
PROFIT FOR THE REPORTING PERIOD          2 313          3 184        10 086        15 289
Other comprehensive income for the reporting period                  -                  -                  -                  -
Total comprehensive income for the reporting period          2 313          3 184        10 086        15 289
Total comprehensive income attributable to:        
The equity holders of the Parent Company          2 315          3 182        10 079        15 281
Non-controlling interests               (2)                 2                 7                 8
         
Basic and diluted earnings per share, EUR            0.16            0.23            0.72            1.08

 

 

 

 

 

 

 

 

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_IV_2016_consolidated FS_ENG.pdf