Unaudited Consolidated Income Statement of AS Olainfarm for first six months of 2018 shows that the sales of the Group have reached 61.8 million euros, which represents a slight decrease of 1% compared to the same period of 2017.  The net profit of 6 months was 5.78 million euros, which represents an increase by 1% compared to the first half of 2017.  The major sales markets of AS Olainfarm during this period remained Russia, Latvia, Belarus and Ukraine. The company's products in the first half of the year were sold in 50 markets worldwide.

In the first half of the year, the Group’s sales volumes continued to increase in all of its major markets, with the exception of Russia and Kazakhstan, which recorded a 5% drop. The significant increase in sales volumes (+ 26%) was achieved in Belarus. In Uzbekistan, sales increased by 38%, the growth was also noted in Latvia and Ukraine. The company's main sales markets in the first half of the year remained unchanged.

The 1% reduction in sales compared to the first half of 2017 was influenced by high sales of anti-tuberculosis "PASS sodium salt" to the WHO last year. Although in the second quarter of 2018 the sales volume was slightly lower, in terms of profitability, the Group achieved improvements in comparison with the corresponding period of the previous year.

Two best selling Olainfarm products during this period were CNS medicines Neiromidin and Noofen.  The share of soluble furan products has slightly increased, as did the proportion of "Adaptol".

During the reporting period, registration processes of several Olainfarm products to be produced in Belorussia by subsidiary NPK Biotest continued. In case of successful outcome, it would further help The Group to strengthen its position in Belorussian market.

The Annual meeting of shareholders of JSC Olainfarm convened on June 5, 2018 approved operating plan of the Group for 2018.  According to it, sales of the Group in 2018 are planned in the amount of 130 million euros, but the net profit will reach 11.5 million euros.  According to this unaudited report for the first half of 2018, during the first six months 47.5% of annual sales target and 50% of annual profit target is met.

Condensed Consolidated Statement of Financial Position Group
   30.06.2018 31.12.2017
   EUR '000 EUR '000
    ASSETS   
NON-CURRENT ASSETS   
Intangible assets  37 068  37 034
Property, plant and equipment  42 772  41 892
Investment properties  3 510  3 526
Financial assets  1 034  2 609
 TOTAL NON-CURRENT ASSETS   84 384   85 061
CURRENT ASSETS   
Inventories  25 774  24 161
Receivables  36 221  34 049
Cash  2 583  3 158
 TOTAL CURRENT ASSETS   64 578   61 368
TOTAL ASSETS   148 962   146 429
   
    EQUITY AND LIABILITIES   
EQUITY   
Share capital  19 719  19 719
Share premium  2 504  2 504
Other components of equity  (38)  (74)
Retained earnings  78 134  75 675
Non-controlling interests   -  -
 TOTAL EQUITY   100 319   97 824
LIABILITIES   
Non-current liabilities   
Borrowings  14 999  15 878
Deferred corporate income tax  -  -
Deferred income  2 522  2 347
 Total Non-Current Liabilities   17 521   18 225
Current liabilities   
Borrowings  11 503  14 013
Trade payables and other liabilities  16 221  15 892
Dividends payable  2 958  -
Deferred income  440  475
 Total Current Liabilities   31 122   30 380
 TOTAL LIABILITIES   48 643   48 605
TOTAL EQUITY AND LIABILITIES   148 962   146 429


Consolidated statement of comprehensive income Group Group
  Q2 2018 Q2 2017 M6 2018 M6 2017
  EUR '000 EUR '000 EUR '000 EUR '000
Net revenue  31 055  34 148  61 844  62 719
Cost of goods sold  (12 117)  (12 467)  (24 895)  (23 930)
Gross Profit  18 938  21 681  36 949  38 789
Selling expense  (9 510)  (10 606)  (18 181)  (18 631)
Administrative expense  (5 790)  (6 035)  (11 431)  (11 449)
Other operating income  687  572  1 405  1 021
Other operating expense  (1 093)  (855)  (1 804)  (1 598)
Share of profit of an associate  7  28  75  60
Income from investments in subsidiaries  -  -  -  -
Financial income   19  79  39  156
Financial expense  (501)  (2 319)  (1 091)  (1 340)
Profit Before Tax  2 757  2 545  5 961  7 008
Corporate income tax  (87)  (569)  (177)  (1 408)
Deferred corporate income tax  2  49  2  103
PROFIT FOR THE REPORTING PERIOD   2 672   2 025   5 786   5 703
Other comprehensive income for the reporting period  41  -  36  -
Total comprehensive income for the reporting period   2 713   2 025   5 822    5 703
Total comprehensive income attributable to:     
The equity holders of the Parent Company   2 713   2 028   5 822   5 701
Non-controlling interests   -   (3)   -   2
     
Basic and diluted earnings per share, EUR  0.19  0.14  0.41  0.40

 JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 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 60 countries worldwide, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Information prepared by:
        
Lauris Macijevskis

JSC Olainfarm
Member of the Management Board
Rupnicu iela 5, Olaine, Latvia, LV 2114
Phone: +371 29112225
Email: lauris.macijevskis@olainfarm.lv

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