OREANDA-NEWS. June 01, 2016. „This year has started with rather unpredictable environment in several CIS countries, where we see worsening of economic situation, governmental activities targeted at protection of local markets and support of local producers.  Several of these activities have influences our sales adversely.  Therefore we plan to place part of production in these countries of acquire a daughter company there, which would allow at least partially mitigating the effects,” says Valerijs Maligins, Chairman of the Board of AS Olainfarm.

During the 1st quarter of 2016 sales to all company’s main markets continued increasing except for Russia, where they shrunk by 38%, compared to 1st quarter of 2015.  This fact, combined with good sales growth in Latvia, has made Latvia to be the biggest market for the Group during 1st quarter of 2016. The most rapid sales increase has been achieved in Poland, where sales grew by 181%.  Sales to Turkmenistan grew by 162%, Sales to Uzbekistan grew by 134% and sales to Belarus grew by 77%. 

During this period significant changes have occurred to the structure of bestselling products, as Adaptol has become the bestselling product, leaving a long term leader Neiromidin in the second place. Share of the bestselling products has also levelled out as no product makes up more than 15% of Olainfarm sales. Overall concentration of sales has also improved, as ten bestselling products make up only 89 % of sales.

During the reporting period, registration processes continued in Turkey, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam. Registration of several products has been successfully completed in Estonia, Turkmenistan, Bosnia and Herzegovina. Laboratory research has been completed for new product “Ibuprofen Antigripp”, two new final dosage forms developed for Ranitidine, scheduled for registration by the end of 2016. Work continues at developing new final dosage forms of anti-tuberculosis products.

It is proposed, that Annual meeting of shareholders of A/s “Olainfarm” to be convened on June 7, 2016 approves 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 1st quarter of 2015, during the first three months 26% of annual sales target and 31% of annual profit target is met.

Condensed Consolidated Statement of  Financial Position Group
    31.03.2016 31.12.2015
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           21 142           20 591
Property, plant and equipment           35 409           35 579
Financial assets             4 845             4 910
  TOTAL NON-CURRENT ASSETS           61 396           61 080
CURRENT ASSETS    
Inventories           20 971           20 990
Receivables           32 365           30 487
Cash             5 366             5 574
  TOTAL CURRENT ASSETS           58 702           57 051
TOTAL ASSETS         120 098         118 131
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           19 719
Share premium             2 504             2 504
Reserves                322                322
Retained earnings           68 881           65 773
Non-controlling interests                  35                  30
  TOTAL EQUITY           91 461           88 348
LIABILITIES    
Non-current liabilities    
Borrowings             7 610             8 560
Deferred corporate income tax             1 830             1 947
Deferred income             2 695             2 656
  Total Non-Current Liabilities           12 135           13 163
Current liabilities    
Borrowings             4 512             4 258
Trade payables and other liabilities           11 210           11 562
Deferred income                780                800
  Total Current Liabilities           16 502           16 620
  TOTAL LIABILITIES           28 637           29 783
TOTAL EQUITY AND LIABILITIES         120 098         118 131

 

 

 

 

 

 

Consolidated statement of comprehensive income Group
  Q1 2016 Q1 2015
  EUR '000 EUR '000
Net revenue        26 130        27 024
Cost of goods sold         (9 908)         (8 190)
Gross Profit        16 222        18 834
Selling expense         (6 845)         (7 068)
Administrative expense         (4 466)         (4 167)
Other operating income             605             414
Other operating expense         (1 755)         (1 458)
Share of profit of an associate               17               72
Financial income             257          1 990
Financial expense              (40)              (56)
Profit Before Tax          3 995          8 561
Corporate income tax         (1 014)         (1 772)
Deferred corporate income tax             132            (114)
PROFIT FOR THE REPORTING PERIOD          3 113          6 675
Other comprehensive income for the reporting period                  -                  -
Total comprehensive income for the reporting period          3 113          6 675
Total comprehensive income attributable to:    
         The equity holders of the Parent Company          3 108          6 671
Non-controlling interests                 5                 4
     
Basic and diluted earnings per share, EUR            0.22            0.47

 

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.