Nasdaq

Consolidated Sales of Olainfarm Reached 122 Million Euros

28-02-2018

Olaine, 2018-02-28 17:15 CET (GLOBE NEWSWIRE) --
“Successful operations of the Company in future will largely depend on its ability to diversify its sales markets and products and to preserve its current position in its key markets. In this respect, the Company continues taking all steps necessary to obtain the market authorisations in Turkey, where the first approvals are expected by middle of 2018. The Company may continue acquiring daughter companies in several areas related to pharmaceutical sector, possibly with different sales markets. An important precondition for more efficient operations would be an ability to integrate already acquired companies and optimize the joint administrative, logistics and marketing structure,” says Olegs Grigorjevs Chairman of the Board of AS Olainfarm.

Sales during the fourth quarter of 2017 shrunk by 1% compared to the same period of 2016 and reached 31.7 million euros. Net income of the group in 4^th quarter was 5 million euros, which represents an increase by 32% compared to the fourth quarter of 2016, making this one of the best quarters in terms of profitability.

Relatively the biggest sales increase in 2017 was achieved in Germany, where sales grew by 103%. Sales to The Netherlands grew by 57%, while sales to Belarus increased by 21%. From all the major sales markets of the Group, only sales to Poland, Uzbekistan and Ukraine experienced some reduction. During the entire year of 2017, compared to its first nine years, share of Russia in its total sales increased from 33% to 35%. Share of sales to other countries have remained relatively unchanged. Major sales markets of Olainfarm Group in 2017 were Russia, Latvia, Ukraine and Belarus.

During 2017, new registration processes were completed in Latvia, Kyrgyzstan, Moldova Armenia and Azerbaijan. Registration of several medicines produced by NPK Biotest continue in Belarus has also been completed. Registration processes are still ongoing in Nepal, Armenia, Turkey, Myanmar, Cameroon and Vietnam. Registration of new product Jogurt Actio has started in several markets. New synthesis schemes have been developed for synthesis of anticancer and anti-tuberculosis 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. Because of poor profitability after the third quarter the management reviewed its profit guidance to either 9 million euros or ten million euros, subject to the possibility to reverse the deferred tax liability. According to this report, annual sales target has been attained by 96%, while net profit guidance has been exceeded by 15%.

Condensed Consolidated Statement of Financial Position		Group
		31.12.2017	31.12.2016
		EUR '000	EUR '000
	ASSETS
NON-CURRENT ASSETS
Intangible assets		37 042	31 860
Property, plant and equipment		42 562	40 943
Investment properties		2 731	1 963
Financial assets		2 704	6 514
	TOTAL NON-CURRENT ASSETS	85 039	81 280
CURRENT ASSETS
Inventories		24 710	24 011
Receivables		34 280	36 124
Cash		3 158	3 165
	TOTAL CURRENT ASSETS	62 148	63 300
TOTAL ASSETS		147 187	144 580

	EQUITY AND LIABILITIES
EQUITY
Share capital		19 719	19 719
Share premium		2 504	2 504
Other components of equity		(79)	322
Retained earnings		76 518	74 081
Non-controlling interests		-	37
	TOTAL EQUITY	98 662	96 663
LIABILITIES
Non-current liabilities
Borrowings		15 806	18 800
Deferred corporate income tax		-	3 025
Deferred income		2 347	2 810
	Total Non-Current Liabilities	18 153	24 635
Current liabilities
Borrowings		13 890	7 020
Trade payables and other liabilities		16 007	15 769
Deferred income		475	493
	Total Current Liabilities	30 372	23 282
	TOTAL LIABILITIES	48 525	47 917
TOTAL EQUITY AND LIABILITIES		147 187	144 580

Consolidated statement of comprehensive income	Group		Group
	Q4 2017	Q4 2016	M12 2017	M12 2016
	EUR '000	EUR '000	EUR '000	EUR '000
Net revenue	31 694	32 018	122 078	110 693
Cost of goods sold	(12 389)	(10 850)	(47 240)	(40 855)
Gross Profit	19 305	21 168	74 838	69 838
Selling expense	(11 220)	(10 393)	(38 228)	(31 733)
Administrative expense	(6 653)	(6 156)	(23 525)	(19 735)
Other operating income	848	1 157	2 601	3 080
Other operating expense	(217)	(3 115)	(3 677)	(9 766)
Share of profit of an associate	44	36	114	63
Income from investments in subsidiaries	-	-	-	-
Financial income	22	2 125	237	3 479
Financial expense	(390)	(100)	(2 303)	(307)
Profit Before Tax	1 739	4 722	10 057	14 919
Corporate income tax	2	(252)	(1 804)	(2 883)
Deferred corporate income tax	3 293	(657)	3 379	(450)
PROFIT FOR THE REPORTING PERIOD	5 034	3 813	11 632	11 586
Other comprehensive loss for the reporting period	(119)	-	(119)	-
Total comprehensive income for the reporting period	4 915	3 813	11 513	11 586
Total comprehensive income attributable to:
The equity holders of the Parent Company	4 915	3 815	11 512	11 579
Non-controlling interests	-	(2)	1	7

Basic and diluted earnings per share, EUR	0.36	0.27	0.83	0.82

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with 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 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