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