Consolidated Sales of Olainfarm in Six Months Exceed 62 Million

Unaudited consolidated Income Statement of AS Olainfarm for first six months of 2017 shows that the sales of the Group have reached 62.7 million euros, which represents an increase by 17% compared to the same period of 2016. This makes it yet another best half-year in corporate history in terms of sales. The net profit of 6 months was 5.7 million euros, which represents a reduction by 7% compared to the first half of 2016. Sales costs in 6 months of 2017 have increased by 4 million, and foreign exchange fluctuations caused another million euros loss. The major sales markets of AS Olainfarm during this period were Russia, Latvia, Belarus and Ukraine.

| Source: Olainfarm Olainfarm

Olaine, 2017-08-31 16:34 CEST (GLOBE NEWSWIRE) -- Second quarter of 2017 has, in terms of sales, been the best quarter in corporate history as sales during this period have increased by 25% and reached 34.1 million. Main contributors to such growth have been significant shipments of PASA to The World Health Organization and serious sales increases in Latvia and Uzbekistan.

 

During the first six months period of 2017, sales to all major markets of AS Olainfarm continued increasing, except Ukraine, where they shrunk by 40%, and Uzbekistan, where they shrunk by 21%.  Significant sales increases have been achieved to The Netherland, where sales grew by 600%, Italy (by 56%) and Kazakhstan (by 555). During the first six months of 2017 products of AS Olainfarm were sold to 41 countries in five continents.

 

Two best selling Olainfarm products during this period were CNS medicines Neiromidin and Noofen.  Conpared to the last year, share of products of soluble furaginum in total sales has slightly increased, while share of Adaptol has decreased from 14% to 11%.  Remantadin has again made it to top ten best selling products of Olainfarm.

 

During the reporting period, registration processes were completed in Armenia, Albania and Azerbaijan.  Registration processed have been started in Nepal and continued in Turkey, Armenia, Myanmar, Cameroon and Vietnam. Registration of medicines produced by NPK Biotest are started in Belarus.  Parent company itself has submitted one more dossier in Turkey and is soon expected to launch several painkilling an anti-inflammatory medicines.

 

 

Annual meeting of shareholders of A/s “Olainfarm” convened on June 1, 2017 approved operating plan of the Group for 2017.  According to it, sales of the Group in 2017 are planned to be 127 million euros, but the net profit will reach 15.5 million euros.  According to this unaudited report for first half of 2017, during the first six months 49.3% of annual sales target and 36.8% of annual profit target is met. Taking into account a considerable deviation in schedule to achieving the profit target, the Board will soon decide on reviewing Groups profit target.

 

Condensed Consolidated Statement of  Financial Position Group
    30.06.2017 31.12.2016
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           37 917           31 860
Property, plant and equipment           41 857           40 943
Investment properties             1 963             1 963
Financial assets             4 725             6 514
  TOTAL NON-CURRENT ASSETS           86 462           81 280
CURRENT ASSETS    
Inventories           25 145           24 011
Receivables           36 579           36 124
Cash             4 900             3 165
  TOTAL CURRENT ASSETS           66 624           63 300
TOTAL ASSETS         153 086         144 580
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           19 719
Share premium             2 504             2 504
Reserves                  40                322
Retained earnings           70 760           74 081
Non-controlling interests                  39                  37
  TOTAL EQUITY           93 062           96 663
LIABILITIES    
Non-current liabilities    
Borrowings           20 152           18 800
Deferred corporate income tax             3 208             3 025
Deferred income             2 584             2 810
  Total Non-Current Liabilities           25 944           24 635
Current liabilities    
Borrowings             8 255             7 020
Trade payables and other liabilities           25 337           15 769
Deferred income                488                493
  Total Current Liabilities           34 080           23 282
  TOTAL LIABILITIES           60 024           47 917
TOTAL EQUITY AND LIABILITIES         153 086         144 580

 

 

 

 

 

 

 

 

 

Consolidated statement of comprehensive income

Consolidated statement of comprehensive income Group Group
  Q2 2017 Q2 2016 M6 2017 M6 2016
  EUR '000 EUR '000 EUR '000 EUR '000
            34 148         27 387         62 719         53 517
Net revenue         (12 467)       (10 412)       (23 930)       (20 320)
Cost of goods sold           21 681         16 975         38 789         33 197
Gross Profit         (10 606)         (7 779)       (18 631)       (14 624)
Selling expense           (6 035)         (4 584)       (11 449)         (9 050)
Administrative expense                572              891           1 021           1 496
Other operating income              (855)         (2 496)         (1 598)         (4 251)
Other operating expense                  28                22                60                39
Share of profit of an associate                  79           1 042              156           1 299
Financial income           (2 319)              (69)         (1 340)            (109)
Financial expense             2 545           4 002           7 008           7 997
Profit Before Tax              (569)         (1 081)         (1 408)         (2 095)
Corporate income tax                  49                82              103              214
Deferred corporate income tax             2 025           3 003           5 703           6 116
PROFIT FOR THE REPORTING PERIOD                    -                   -                   -                   -
Other comprehensive income for the reporting period             2 025           3 003           5 703           6 116
Total comprehensive income for the reporting period        
Total comprehensive income attributable to:            2 028          3 003          5 701          6 111
The equity holders of the Parent Company                 (3)                  -                 2                 5
Non-controlling interests        
                0.14             0.21             0.40             0.43
Basic and diluted earnings per share, EUR        

 

 

 

 

 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_ll _2017_consolidated FS_ENG.pdf