17th April, 2018




Olainfarm’s Sales in March Exceed 10 Million Euros.


Preliminary three months consolidated sales results show 13% sales increase.



Consolidated sales in March


Preliminary consolidated results of AS Olainfarm for March 2018 show that the sales exceeded 10.5 million euros, which represents an increase by 7% compared to the same period of last year.  Major sales markets of AS Olainfarm in March were Russia, Latvia and Belarus. Sales were made to 33 countries.


The biggest sales increase in March was achieved in Uzbekistan, where sales increased by 338%.  Sales to Germany increased by 190%, but sales in India increased by 190%.  Stable growth was also demonstrated by sales in established markets like Russia, Belarus, Latvia and Lithuania.  The major sales reduction, however, was experienced in Ukraine, where sales dropped by 64% and Italy, where sales dropped by 58%.  


March 2018, consolidated sales Sales, thsnd. EUR Share in total sales Changes to March, 2017 

 
Russia 3 722 35% 37%  
Latvia 3 102 29% 24%  
Belarus 1 236 12% 71%  
Germany 310 3% 190%  
Kazakhstan 294 3% 45%  
Uzbekistan 292 3% 338%  
Ukraine 226 2% -64%  
Lithuania 207 2% 44%  
Italy 195 2% -58%  
India 134 1% 149%  
Other 814 8% -63%  
Total 10 5334 100% 7%  


Sales of pharmacies of SIA Latvijas Aptieka in March 2018 reached 2.2 million euros, which represents an increase of nearly 18% compared to the same period of 2017.  Sixty-nine pharmacies were operating during March. Sales of Silvanols in March remained virtually unchanged compared to March of 2017 and reached 0.54 million euros. Combined sales of Tonus Elast and its Russian sales arm Elast Medical were 0.86 million euros.  Combined sales of health care companies Diamed and Olainmed reached 0.22 million euros, while sales of NPK Biotest reached 0.23 million euros.







  March 2018
Sales markets of Olainfarm 27
Sales markets of the Group 33
Number of pharmacies of Latvijas Aptieka 69
Sales of Latvijas Aptieka €  2 183 127
Sales of Olainmed and Diamed €   220 518
Sales of NPK Biotest € 231 441
Sales of Tonus Elast and Elast Medical € 863 266
Sales of Silvanols € 536 545


Consolidated 3 months sales


In three months of 2018, according to preliminary consolidated results, sales of AS Olainfarm reached 30.41 million euros, which represents an increase by 13% compared to the same period of 2017.  Group made its sales in 43 countries.


Sales to all ten of the top markets were growing.  The biggest sales increase during this period was achieved in Japan, where sales grew by 850%.  The reason for such a boost is an increased order size of chemical products to this country.  Significant increases are also achieved in India, where sales grew by 504%, Uzbekistan (by 509%) and Kazakhstan (by 88%).  Despite somewhat volatile economic situation in Ukraine, sales to this country during the first quarter increased by 18% compared to the first quarter of 2017.


Major sales markets of Olainfarm Group during three months of 2018 were Latvia, Russia, and Belarus.


3 months of 2018, consolidated sales Sales, thsnd. EUR Share in total sales Changes to 3 months of 2017
Latvia 8 797 29% 18%
Russia 8 191 27% 7%
Belarus 4 593 15% 43%
Ukraine 2 358 8% 18%
Kazakhstan 844 3% 88%
Uzbekistan 685 2% 509%
Germany 664 2% 68%  
Lithuania 582 2% 45%
Japan 376 1% 850%  
India 333 1% 504%  
Other 2 988 10% -42%  
Total 30 411 100% 13%  


Sales of pharmacies of SIA Latvijas Aptieka during the first quarter of 2018 were 6.2 million euros, which represents an increase by 19% compared to the first quarter of 2017.  Sales of SIA Silvanols during the first quarter reached 1.5, meaning they have dropped by 4.8% compared to the same period of 2017.


Combines sales of SIA Tonus Elast and Elast Medical during the first three months of 2017 reached 2.02 million euros, while combined sales of health care companies have reached 0.6 million euros.  Sales of Belarus based NKP Biotest during the first quarter reached 0.6 million euros.


  3 months of 2018
Sales markets of Olainfarm 36
Sales markets of the Group 43
Number of pharmacies of Latvijas Aptieka 69
Sales of Latvijas Aptieka € 6 182 048
Sales of Olainmed and Diamed € 616 518
Sales of NPK Biotest € 626 876
Sales of Tonus Elast and Elast Medical € 2 025 783
Sales of SIlvanols € 1 540 063



Unconsolidated sales in March


According to preliminary unconsolidated results, sales of AS Olainfarm in March reached 7.81 million euros, which represents an increase by 2% compared to March 2017.  During the March of 2018, products of AS Olainfarm were sold to 27 countries in four continents.   

The main sales markets by share remain the same, namely Russia (43% share), Latvia (18% share) and Belarus (12% share).  Compared to March of last year, company’s sales to Uzbekistan have increased by more than 300%, however, weakening of the local currency was one of the reasons behind falling sales volumes in Ukraine, where sales in march 2018 dropped by 65% compared to March 2017.  India, which has been an occasional export market of the company since 2001, the sales have increased by 149%.

March 2018, unconsolidated sales Sales, thsnd. EUR Share in total sales Changes to March 2017
Russia 3 391 43% 48%
Latvia 1 440 18% 16%
Belarus 968 12% 42%
Germany 309 4% 190%
Uzbekistan 292 4% 338%
Lithuania 197 3% 66%
Ukraine 189 2% -65%
Italy 160 2% -65%
India 134 2% 149%
Tajikistan 101 1% -31%
Other 626 8% -67%
Total 7 808 100% 2%



Unconsolidated sales in 3 months

According to preliminary unconsolidated results of the first quarter of 2018, the company made sales of 25.5 million euros, which represents an increase by 10% compared to the first quarter of 2017.  In total, the company made its sales to 36 countries during this period.

The biggest sales increase was achieved in Japan, where sales grew by 850%, while sales to Uzbekistan grew by 509%, but sales to India increased by 505%.  The major sales markets of AS Olainfarm during this period were Russia, Latvia, Belarus and Ukraine.

3 months of 2018, unconsolidated sales Sales, thsnd. EUR Share in total sales Changes to 3 months of 2017
Russia 7 336 31% 6%
Latvia 4 464 19% 21%
Belarus 3 895 17% 24%
Ukraine 2 320 10% 22%
Uzbekistan 685 3% 509%
Germany 659 3% 69%
Lithuania 559 2% 71%
Kazakhstan 538 2% 118%
Japan 376 2% 850%
India 332 1% 505%
Other 2 358 10% -47%
Total 23 523 100% 10%


According to sales guidance of AS Olainfarm, in 2018 the company plans to reach unconsolidated sales 96 million euros and consolidated sales of 130 million euros.  According to these preliminary results, in 3 months of 2018 26% of annual guidance for unconsolidated sales and 24% of annual guidance for consolidated sales have been met.


 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