CORRECTION: Profit of Olainfarm in First Quarter Increases by 81%, Sales Reached 27 Million

AS Olainfarm has just experienced its most profitable quarter so far, as it made a net profit of 6.7 million euro and sales of 27 million euro. Net profit has increased by 81%, while sales have increased by 16% compared to the same period one year ago. Major sales markets of AS Olainfarm during this period were Russia, Latvia, Ukraine, The Netherlands and Belarus.

| Source: Olainfarm Olainfarm

Olaine, 2015-05-29 17:43 CEST (GLOBE NEWSWIRE) -- „Significant sales growth to countries of Central Asia and to Russia along with increased deliveries to the World Health Organization have helped us achieve yet another most successful quarter in history of Olainfarm.  However, worsening of situation on Ukrainian and Russian markets make us be more careful and focus even more on further diversification of our sales markets. We have already taken a few steps in this direction, and commencement of exports to Mongolia and successful development with registration in Turkey are proof to that.  We are expecting more rapid sales growth of Silvanols soon, as it has been more than a year since we started a lot more active use of our marketing and logistics power to help them succeed in our traditional markets,” says Valerijs Maligins, Chairman of Olainfarm’s Board.

 

During the 1st quarter of 2015 sales to all company’s main markets continued increasing except for Belarus, where they shrunk by 26%, compared to 1st quarter of 2014.  It should be noted, however, that during previous two years in a row, sales to Belarus were growing: by more than 40% in 2014 and more than 70% in 2013. The most rapid sales increases during the 1st quarter of 2015 were achieved in Tajikistan, where sales grew by 173%, The Netherlands, where sales grew by 157%, Kyrgyzstan, where sales grew by 129% and Kazakhstan, where sales grew by 106%.  Sales to Russia grew by 27%. In total, during the first quarter AS Olainfarm made sales in 31 countries on 5 continents.

 

During this time, significant changes have occurred to the structure of bestselling products, as due to increased demand for anti-tuberculosis product PASA Sodium salt, this product has become the second best selling product with a total share of 14% of all Olainfarm products sold.  The list of best sellers is still headed by Neiromidin, Olainfarm’s product for health of nervous system.

 

It is proposed, that Annual meeting of shareholders of A/s “Olainfarm” to be convened on June 11, 2015 approves operating plan of the Group for 2015.  According to it, sales of the Group in 2015 are planned to be 100 million euros, but the net profit will reach 15 million euros.  According to this unaudited report for 1st quarter of 2015, during the first three months 27% of annual sales target and 45% of annual profit target is met.

 

 

Condensed Consolidated Statement of  Financial Position Group
    31.03.2015 31.12.2014
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           18 792           18 848
Property, plant and equipment           36 006           34 674
Financial assets             4 279             4 234
  TOTAL NON-CURRENT ASSETS           59 077           57 756
CURRENT ASSETS    
Inventories           18 754           18 693
Receivables           33 929           28 219
Cash             4 111             2 055
  TOTAL CURRENT ASSETS           56 794           48 967
TOTAL ASSETS         115 871         106 723
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           20 041
Share premium             2 504             2 504
Reserves                322                     -
Retained earnings           57 163           50 492
Non-controlling interests                  12                    8
  TOTAL EQUITY           79 720           73 045
LIABILITIES    
Non-current liabilities    
Borrowings             9 940           10 387
Deferred corporate income tax             1 754             1 640
Deferred income             2 037             2 099
  Total Non-Current Liabilities           13 731           14 126
Current liabilities    
Borrowings             6 953             6 906
Trade payables and other liabilities           15 028           12 227
Deferred income                439                419
  Total Current Liabilities           22 420           19 552
  TOTAL LIABILITIES           36 151           33 678
TOTAL EQUITY AND LIABILITIES         115 871         106 723

 

Consolidated statement of comprehensive income Group
  Q1 2015 Q1 2014
  EUR '000 EUR '000
Net revenue        27 024        23 314
Cost of goods sold         (8 190)         (7 587)
Gross Profit        18 834        15 727
Selling expense         (7 119)         (6 460)
Administrative expense         (4 126)         (3 762)
Other operating income             592             497
Other operating expense         (1 626)            (646)
Share of profit of an associate               72               22
Financial income          1 990               35
Financial expense              (56)            (930)
Profit Before Tax          8 561          4 483
Corporate income tax         (1 772)            (683)
Deferred corporate income tax            (114)            (123)
PROFIT FOR THE REPORTING PERIOD          6 675          3 677
Other comprehensive income for the reporting period                  -                  -
Total comprehensive income for the reporting period          6 675          3 677
Total comprehensive income attributable to:    
The equity holders of the Parent Company          6 671          3 654
Non-controlling interests                 4               23
     
Basic and diluted earnings per share, EUR            0.47            0.26

 

 

 

 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