Olaine, 2016-05-31 17:37 CEST (GLOBE NEWSWIRE) -- „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.
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
