JSC Olainfarm preliminary consolidated results for December indicate that revenues decreased by 41% compared to the same month the year before and reached EUR 6.5 million. At the same time consolidated results for the entire year show that revenues reached EUR 137.7 million, which is an increase by 12%, compared to 2018. Sales increased in Latvia and Belarus, while other regions experienced a decline. During this period, products of Olainfarm Group were sold in 59 markets worldwide.

Consolidated sales in December show a revenue decrease in six out of the eight markets. In the Central Asian region revenues declined by 7%, in the EU countries by 21%, in Russia by 93%, in the Caucasian region by 39%, in the Ukraine by 68% and in other countries by 64%. Sales volumes increased in Latvia and Belarus by 4% and 54%, respectively.
December results are in line with the previously planned volumes due to unusually high sales quantities in October and November, 2019 which included certain amounts of final dosage forms that the Group normally delivers in December.

For the full 2019, Olainfarm Group revenues were EUR 137.7 million that is 12% more than the year before. The Russian market had the largest share of 32%, Latvia – 24%, Belarus – 16% and the Ukraine – 8%. The most rapid sales growth during the year was achieved in Russia and in Central Asia, where sales grew by 17% compared to last year, and in Latvia where sales grew by 13%. Sales in Belarus improved by 10%, in the EU countries and in other countries by 11%. Amongst the largest sales outlets a decline was marked in the Ukraine (- 4%) and in the Caucasian region (- 8%).

Given that the Group regularly  achieves significant sales amounts in four countries (Latvia, Russia, Belarus and the Ukraine), other countries are combined in regions – Central Asia, the EU countries except for Latvia, the Caucasian countries and other countries. Such division provides a more appropriate picture of sales trends by diminishing the influence of one-time or irregular deliveries on monthly figures.

“Preliminary consolidated results indicate that the year 2019 was the best financial year in the history of OlainFarm Group: both revenue and profit. Besides a strong in-market performance in our main countries, the result is also positively impacted due to increase of sales in Russia in Q4 to built up stock before serialization becomes into force. When looking at 2020, our sales forecast in Q1 is reflecting a modest sales due to this stock building in Russia in Q4 of previous year. Although the implementation of serilization is delayed to July 2020, it will have no negative impact on the financial projections for entire 2020. We project a further growth of OlainFarm Group that we have started in 2019, says Jeroen Weites, the CEO of OlainFarm Group.,” says Jeroen Weites, the CEO of Olainfarm Group.

Market  Sales, thous. EURShare in total salesChanges to December 2018
Latvia3 22750%4%
Central Asia*91214%-7%
Belarus82113%54%
EU countries**69211%-21%
Russia2804%-93%
Other countries***2093%-64%
Caucasian countries****2023%-39%
Ukraine1713%-68%
Total6 514100%-41%

* - the Central Asian region includes Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, Mongolia and Turkmenistan;
** - the EU countries region includes all the European Union member states except for Latvia;
*** - Other countries includes all of the countries in the world, which are not included in any other groups;
**** - the Caucasian countries are Georgia, Armenia and Azerbaijan

12 months 2019, consolidated salesSales, thous. EURShare in total salesChanges to 12 months 2018
Russia44 24432%17%
Latvia32 65824%13%
Belarus21 41816%10%
Central Asia11 3248%17%
Ukraine10 7168%-4%
EU countries10 3287%12%
Other countries4 8834%11%
Caucasian countries2 1472%-8%
Total137 718100%12%

Unconsolidated sales – December and 12 months

According to the preliminary unconsolidated figures, JSC Olainfarm sales reached EUR 3.7 million in December, which represents a decrease by 55% compared to December, 2018. Sales of products in December improved only in Latvia and Belarus by 2% and 80%, respectively. Sales in December declined in Central Asia by 6%, in the EU countries by 23%, in the Ukraine by 65% and in the Caucasian countries by 55%. There were no deliveries to Russia due to the above mentioned reasons.

The unconsolidated sales results for the twelve months of 2019 show that JSC Olainfarm sales reached EUR 105.1 million, which represents an increase by 13% compared to the same period last year. During 2019, sales increased in Russia (+23%), Belarus (+9%), Latvia (+5%), Central Asia (+15%), the EU countries (+13%) and in other countries (+10%). Revenues declined by 4% in the Ukraine and by 3% in the Caucasian countries.

December 2019, unconsolidated salesSales, thous. EURShare in total salesChanges to December 2018
Latvia1 44239%2%
Central Asia78021%-6%
EU countries57415%-23%
Belarus54315%80%
Other countries1975%-65%
Ukraine1664%-65%
Caucasian countries993%-55%
Russia00%NA
Total3 721100%-55%


12 months 2019 unconsolidated salesSales, thous. EURShare in total salesChanges to 12 months 2018
Russia40 63839%23%
Belarus18 25517%9%
Latvia11 67111%5%
Ukraine10 44210%-4%
Central Asia9 4579%15%
EU countries8 8448%13%
Other countries4 3434%10%
Caucasian countries1 4611%-3%
Total105 110100%13%

Results of subsidiaries – December and twelve months of 2019

The pharmacy chain  Latvijas aptieka sales reached EUR 2.3 million in December, 2019, which represents an 8% increase compared to December, 2018. 68 pharmacies were operating during this period.  Silvanols sales reached EUR 0.7 million in December, 2019, representing an increase by 27% vs. December, 2018. The combined sales of Tonus Elast and Elast Medical in December, 2019 were EUR 0.8 million, which is 2% less than this time last year. Olainmed and Diamed Medical Center sales reached EUR 0.2 million, while the Belarusian subsidiary NPK Biotest reached EUR 0.28 million in sales in December, which is 21% higher than in December of last year.

During the entire 2019,  Latvijas aptieka sales amounted to EUR 26.1 million, demonstrating an 8% increase in comparison to 2018. Sales of  Silvanols reached EUR 5.4 million,which is 1% less than last year. The combined sales of Tonus Elast and Elast Medical during the twelve months of this year totaled up to EUR 9.6 million, which is a 4% drop. Medical Centers Diamed and Olainmed revenues exceeded EUR 3 million during the first twelve months of this year and the Belarusian company NPK Biotest sales were worth EUR 3.1 million, improving the result of last year by 33%.

 December 201912 months 2019
Sales markets of Olainfarm3552
Sales markets of the Group4359
Number of pharmacies68 
Sales of Latvijas aptieka, thous. EUR2 29126 138
Sales of Medical centers, thous. EUR2003 074
Sales of NPK Biotest, thous. EUR2783 142
Sales of Tonus Elast and Elast Medikl, thous. EUR8019 642
Sales of Silvanols, thous. EUR7105 431

According to the JSC Olainfarm plans, the unconsolidated sales were set to reach EUR 99 million in 2019, while the consolidated sales were expected at EUR 133 million.  According to these preliminary sales figures, in the entire 2019, 107% of last year's  target for the unconsolidated sales and 103% of last year's target for consolidated sales have been reached.

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 the 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
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com