During the 1st quarter of 2019, consolidated sales of the Olainfarm Group reached 34.7 million euros which is an increase by 4 million euros or 13% if compared to similar period of 2018. Such result marks a new record of first quarter revenues. Net profit for the 1st quarter is by far the largest in Olainfarm group’s history and reached 8.3 million euros. Earnings were positively affected by increase in revenues, smaller increase in costs of goods sold and administrative expenses and decline in selling expenses.
In the 1st quarter 2019 sales continued to climb in all the major markets. During the reporting period sales in Latvia and Belarus increased by over 900 thousand euros, in Russia – by around 880 thousand and in Ukraine – by close to 500 thousand euros.
During the first three months of this year sales of Olainfarm’s main products continued to increase. The bestselling product was Noofen with 18% share, which is the same as a year ago. Share of the three largest products was 49% that is less than last year (51%). Olainfarm started deliveries of PASS Sodium Salt to World Health Organization, which allowed this product to make in to the Top 10 products list.
In the 1st quarter of 2019, JSC Olainfarm has completed 3.4 mil. euro investments in production equipment, premises and software, as well as amended medicine registration documents and joined EU and regional Medicines Verification Organizations to comply with EU Directive on Falsified Medicinal Products (2011/62/ES) and EU Commission Delegated Regulation (EU 2016/161) requirements on safety indications and verification of medicinal products distributed in European markets.
JSC Olainfarm has received Latvian registration of generic final dosage form Acetylcysteine Olainfarm for respiratory diseases treatment; has received European Pharmacopoeia’s Certificate of Sustainability (CEP) for active pharmaceutical ingredient Amantadine Hydrochloride produced by the company, as well as company’s active pharmaceutical ingredient Chlorobutanol Hydrate is registered for production of final dosage form product by cooperation partner in Germany.
On March 5, 2019 investor conference – webinar JSC Olainfarm has published the main financial indicators of the planned Group’s performance for the year 2019 - the Group’s net revenue for the year 2019 is planned 133.3 million euro and the Group’s net profit – 10.0 million euro. Based on the results of the 1st quarter the management has adjusted the plan by increasing net profit till 12.7 million euro, that are expected to be presented at the Annual General shareholders meeting. In accordance with this report on 1st quarter, 26% of net revenue annual plan is reached and 65% of net profit annual adjusted plan is reached.
During the first quarter of 2019, almost 157 thousand shares of AS “Olainfarm”, worth around 1.09 million euros, were traded on Nasdaq Riga. Compared to the same period in 2018, the number of traded shares was approximately the same while turnover was lower.
| Condensed Consolidated Statement of Financial Position | Group | ||
| 31.03.2019 | 31.12.2018 | ||
| EUR '000 | EUR '000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 36 496 | 36 619 | |
| Property, plant and equipment | 43 520 | 43 697 | |
| Right-of-use assets | 7 469 | - | |
| Investment properties | 3 551 | 3 492 | |
| Other non-current assets | 919 | 983 | |
| TOTAL NON-CURRENT ASSETS | 91 955 | 84 791 | |
| CURRENT ASSETS | |||
| Inventories | 27 403 | 25 794 | |
| Receivables | 34 612 | 34 637 | |
| Cash | 7 104 | 2 689 | |
| TOTAL CURRENT ASSETS | 69 119 | 63 120 | |
| TOTAL ASSETS | 161 074 | 147 911 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 19 719 | 19 719 | |
| Share premium | 2 504 | 2 504 | |
| Reserves | (69) | (224) | |
| Retained earnings | 91 339 | 83 079 | |
| TOTAL EQUITY | 113 493 | 105 078 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings and lease liabilities | 6 805 | 1 793 | |
| Deferred income | 3 509 | 2 878 | |
| Total Non-Current Liabilities | 10 314 | 4 671 | |
| Current liabilities | |||
| Borrowings and lease liabilities | 21 055 | 23 236 | |
| Trade payables and other liabilities | 15 841 | 14 540 | |
| Deferred income | 371 | 386 | |
| Total Current Liabilities | 37 267 | 38 162 | |
| TOTAL LIABILITIES | 47 581 | 42 833 | |
| TOTAL EQUITY AND LIABILITIES | 161 074 | 147 911 | |
| Consolidated statement of comprehensive income | Group | |
| Q1 2019 | Q1 2018 | |
| EUR '000 | EUR '000 | |
| Revenue | 34 745 | 30 789 |
| Cost of goods sold | (13 491) | (12 778) |
| Gross Profit | 21 254 | 18 011 |
| Selling expense | (8 281) | (8 671) |
| Administrative expense | (6 333) | (5 641) |
| Other operating income | 462 | 718 |
| Other operating expense | (255) | (711) |
| Share of profit of an associate | 78 | 68 |
| Financial income | 1 563 | 20 |
| Financial expense | (161) | (590) |
| Profit Before Tax | 8 327 | 3 204 |
| Corporate income tax | (67) | (90) |
| Deferred corporate income tax | - | - |
| PROFIT FOR THE REPORTING PERIOD | 8 260 | 3 114 |
| Other comprehensive income for the reporting period | 155 | (5) |
| Total comprehensive income for the reporting period | 8 415 | 3 109 |
| Total comprehensive income attributable to: | ||
| The equity holders of the Parent Company | 8 415 | 3 109 |
| Non-controlling interests | - | - |
| Basic and diluted earnings per share, EUR | 0.59 | 0.22 |
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 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 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com
Attachment
