For Investors

Olainfarm will hold First Quarter 2015 Investor Conference Webinar

on 5 birželio, 2015 Komentavimas išjungtas įraše Olainfarm will hold First Quarter 2015 Investor Conference Webinar

JSC Olainfarm invites shareholders, investors, mass media representatives and other stakeholders to join its first quarter 2015 investor conference webinar scheduled on June 9, 2015 at 16:00 (EET). Please note that attendees have to register for the webinar – detailed information on the registration process is available below.

Webinar will be hosted by the Member of the Management Board Salvis Lapiņš. The presentation will be held in English.

During the webinar Salvis Lapiņš will inform about JSC Olainfarm latest activities and analyze the non-audited financial results of the first quarter 2015 and audited financial results of 2014.

After the presentation investors are welcome to ask questions. Due to the limited webinar time, please send in your questions in advance till June 8 to e-mail: ieva.kadakovska@nasdaq.com or Investors’ portal naudaslietas.lv.

What is webinar?
Webinar is a virtual conference, during which company’s representative gives information about the company, its activities and future plans. Webinar allows interactive communication and provides an opportunity to ask questions and get answers directly from the company.

How to join the webinar?
All you need is a computer with internet connection and headphones.

To join the webinar, we invite you to register via http://ej.uz/OLF_1Q2015.

You will be provided with the webinar link and instructions to join webinar successfully. When joining the webinar for the first time, you will be asked to download the system application on your computer which will take only few seconds.

For more information on webinar service please visit: http://www.nasdaqbaltic.com/en/products-services/webinars-3/

Join the webinar and be the first one to hear the news!

 

Information prepared by:

Salvis Lapins
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

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Olainfarm will hold First Quarter 2015 Investor Conference Webinar

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

on 29 gegužės, 2015 Komentavimas išjungtas įraše Profit of Olainfarm in First Quarter Increases by 81%, Sales Reached 27 Million

JSC 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 JSC Olainfarm during this period were Russia, Latvia, Ukraine, The Netherlands and Belarus.

„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 JSC 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 JSC 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 Unaudited Interim Condensed Consolidated Financial Statements for the 3 Months Period Ended 31 March 2015:  Olainfarm_I_2015_consolidated FS_ENG

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
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

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

Draft resolutions of the Annual General Meeting of Shareholders of JSC Olainfarm to be held on June 11th, 2015

on 28 gegužės, 2015 Komentavimas išjungtas įraše Draft resolutions of the Annual General Meeting of Shareholders of JSC Olainfarm to be held on June 11th, 2015

1. Report of the Board about the results of operations in 2014.

Draft resolution:

To take notice of the Report of the Board on results of operations in 2014.

 2. Report of the Council about the results of operations in 2014.

Draft resolution:

To take notice of the Report of the Council on results of operations in 2014.

3. Report of the Auditing Committee.

Draft resolution:

To take notice of the Report of the Auditing Committee.

4.JSC Olainfarm Consolidated and Parent company’s Annual report for year 2014.      

Draft resolution:

To approve JSC Olainfarm Consolidated and Parent mother company’s Annual report for year 2014.

5. Distribution of profit of 2014.

Draft resolution:

To reinvest the profit of JSC Olainfarm for year 2014 in amount of  EUR 11 424 000.00 (eleven million four hundred twenty four thousand euro, 00 cents) in the development of JSC Olainfarm.

6. Report of the Management Board about the budget and operational plan for 2015.

Draft resolution:

To take notice of Report of the Board on budget and operational plan for 2015, which include Company’s unconsolidated turnover forecast for 2015 in amount of 87 million Euro; Forecast of unconsolidated profit of JSC Olainfarm in amount of 14 million Euro, but consolidated turnover forecast for amount of 100 million Euro and profit consolidated profit forecast for amount of 15 million Euro.

7. Elections of the sworn auditor for 2015 and setting of the remuneration for the sworn auditor.

Draft resolutions:

7.1. to elect SIA Ernst & Young Baltic (license No.17, unitary registration No. 40003593454) to be the certified auditor of JSC Olainfarm in 2015.

7.2. to set the total remuneration of certified auditor for 2015 in amount of 42 450.00 Euro.

8. Elections of the Auditing Committee for 2015 and setting of the remuneration of the Auditing Committee.

Draft resolutions:

8.1. to elect Mr. Viesturs Gurtlavs  to be the member of the Auditing Committee.

8.2. to set the total monthly remuneration of the member of the Auditing Committee in amount of EUR 4 200.00.

9. Approval of Regulations for Auditing Committee.

Draft resolutions:

To approve the Regulations for Auditing Committee.

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Draft resolutions of the Annual General Meeting of Shareholders of JSC Olainfarm to be held on June 11th, 2015

Olainfarm Sells for 9.15 Million in April, Starts Exporting to Mongolia

on 15 gegužės, 2015 Komentavimas išjungtas įraše Olainfarm Sells for 9.15 Million in April, Starts Exporting to Mongolia

Preliminary consolidated results of JSC Olainfarm for April 2015 show that the group has made sales worth 9.15 million euros, which represents a reduction by 3% compared to April of last year.  Sales to The Netherlands grew the most, as they increased by 800%.  Sales to Kyrgyzstan increased by 129%.  During April, the group also made significant shipments to Germany and started exporting of final dosage forms to Mongolia. Major sales markets of the group during April were Russia, Latvia, Ukraine, Belarus and The Netherlands.

April 2015, consolidated sales Share in total sales Changes to April 2014
Russia 38% -21%
Latvia 22% 11%
Ukraine 11% -33%
Belarus 8% 8%
The Netherlands 7% 800%
Kazakhstan 2% -11%
Uzbekistan 2% 11%
Germany 1% NA
Kyrgyzstan 1% 129%
Turkmenistan 1% 37%
Other 6% 18%
Total 100% -3%

 

Sales of pharmacy chain of Latvijas aptieka Ltd. in April 2015 was 1.4 million euros, which represents an increase by 11% compared to 2013.  58 pharmacies were during April.  Sales of Silvanols Ltd. in April 2015 was 0.33 million euros, which represents an increase by 22% compared to 2014.  In April Silvanols Ltd. started exporting to Austria and generally was selling its products in six European countries.

During four months of 2015, according to preliminary figures, consolidated sales of JSC Olainfarm were 36.76 million euros, which represents an increase by 12% compared to similar period of 2014.  The most rapid sales growth were achieved in the Netherlands, where sales grew by 203%. Sales to Kyrgyzstan grew by 129%, sales to Tajikistan grew by 88%, but sales to Kazakhstan grew by 58%.  Major sales markets of JSC Olainfarm in four months of 2015 were Russia, Latvia, Ukraine, The Netherlands and Belarus.

4 months of 2015, consolidated sales Share in total sales Changes to 4 months of 2014
Russia 37% 10%
Latvia 21% 9%
Ukrain4 12% -1%
The Netherlands 8% 203%
Belarus 7% -18%
Kazakhstan 2% 58%
UK 2% 0%
Kyrgyzstan 1% 129%
Tajikistan 1% 88%
Uzbekistan 1% -29%
Other 7% 4%
Total 100% 12%

 

In four months of 2015, sales of pharmacy chain of Latvijas aptieka Ltd. was 5.6 million euros, which represents an increase by 10% compared to the same period one year ago.  Sales of Silvanols Ltd. in four months of 2015 were 1.4 million euros, which represents and increase by 24% compared to first four months of 2014, when Silvanols’ sales equaled 1.13 million euros. During first four months of 2015, Silvanols Ltd. was exporting its products to 11 countries in two continents.

According to preliminary unconsolidated sales figures of JSC Olainfarm, sales of the company during April 2015 were 8.08 million euros, which represents a reduction by 4% compared to the same period of 2014. The biggest sales increases were achieved in The Netherlands, where sales grew by 800%.  Sales to Kyrgyzstan grew by 129%, sales to Turkmenistan grew by 37%, and significant shipments were made to Germany and exports started to Mongolia.  Major sales markets of JSC Olainfarm in April 2015 were Russia, Latvia, Ukraine, Belarus and The Netherlands.  In total during April 2015, JSC Olainfarm made its sales in 24 countries on three continents.

April 2015, unconsolidated sales Share in total sales Changes to April 2014
Russia 43% -21%
Latvia 13% 26%
Ukraine 12% -33%
Belarus 9% 8%
The Netherlands 7% 800%
Kazakhstan 2% -11%
Uzbekistan 2% 11%
Germany 2% NA
Kyrgyzstan 2% 129%
Turkmenistan 1% 37%
Other 6% 15%
Total 100% -4%

 

According to preliminary results, during 4 months of 2015 unconsolidated sales of JSC Olainfarm has reached 32.6 million euros, which represents an increase by 15% compared to the same period of 2014.  The most rapid sales increases were achieved in The Netherlands, Kyrgyzstan, Tajikistan and Kazakhstan, where sales respectively grew by 203%, 129%, 88% and 58%.  According to preliminary unconsolidated results the major sales markets of JSC Olainfarm in four months of 2015 were Russia, Ukraine, Latvia, The Netherlands and Belarus.  In total in four months of 2015 JSC Olainfarm made sales to 33 countries in 5 continents.

4 months of 2015, unconsolidated sales Share in total sales Changes to 4 months of 2014
Russia 42% 10%
Ukraine 13% -1%
Latvia 13% 38%
The Netherlands 9% 203%
Belarus 8% -18%
Kazakhstan 3% 58%
UK 3% 0%
Kyrgyzstan 1% 129%
Tajikistan 1% 88%
Uzbekistan 1% -29%
Other 6% -6%
Total 100% 15%

 

According to preliminary estimates, the Company expects its unconsolidated sales of 2015 to reach 84 million euro, while its consolidated sales are expected to be at 100 million euro.  Preliminary sales numbers published herein show that in 4 months of 2015 the company has attained 39% of its annual estimate of unconsolidated sales and 37% of its annual estimate of consolidated sales.

 

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
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

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Olainfarm Sells for 9.15 Million in April, Starts Exporting to Mongolia

Announcement about convening of the Annual General Meeting of Olainfarm

on 11 gegužės, 2015 Komentavimas išjungtas įraše Announcement about convening of the Annual General Meeting of Olainfarm

Management Board of the Joint Stock company Olainfarm (registration number. 40003007246, registered address: Rupnicu iela 5, Olaine, LV-2114) announces that the Annual General Meeting of JSC Olainfarm Shareholders will be convened on June 11, 2015 at 11:00 at the premises of JSC Olainfarm in Olaine, Rupnicu iela 5.

Agenda:

1.    Report of the Management Board about the results of operations in 2014.

2.    Report of the Council about the results of operations in 2014.

3.    Report of the Auditing Committee.

4.    JSC Olainfarm Сonsolidated and ParentСompany’s Annual Report for year 2014.

5.    Distribution of profit of 2014.

6.    Report of the Management Board about the budget and operational plan for 2015.

7.    Elections of the sworn auditor for 2015 and setting of the remuneration for the sworn auditor.

8.    Elections of the Auditing Committee for 2015 and setting of the remuneration of the Auditing Committee.

9.    Approval of Regulations for Auditing Committee.

 

Registration of the shareholders will take place on the day of the meeting, i.e. June 11, 2015 from 10:00 until 10:45 on the venue.

Total number of shares and the total number of the voting shares of JSC Olainfarm is 14 085 078.

Date of the record for participation of the shareholders in the Annual General Meeting of shareholders of JSC Olainfarm is June 3rd, 2015. Only those who are the shareholders at the date of record have the right to participate in the Annual General Meeting of shareholders on June 11, 2015, with the number of shares held by them at the date of record.

Shareholders may participate in the Annual General Meeting of shareholders either in person or represented through a proxy:

–              When registering the shareholders must present either the passport or other identification document;

–              When registering the representatives of the shareholders must present the passport of other identification document, submit a written power of attorney by the represented shareholder (the form of the power of attorney is available at JSC Olainfarm web-site https://lt.olainfarm.com, web-site of the system of Central Storage of Regulated Information http://www.oricgs.lv; and web-site of JSC  NASDAQ Riga http://www.nasdaqomxbaltic.com) or the legal representative has to present a document confirming the authority.

Shareholders have the following rights:

–              shareholders that represent at least 1/20 of the capital of the company have the right to within 7 days after the announcement is published to request the Management Board of JSC Olainfarm to include additional items in the agenda. Shareholders that request inclusion of additional items in the agenda of the Annual General Meeting of shareholders must submit to the Management Board of JSC Olainfarm draft decisions about the issues to be included in the agenda upon their request or explanations about the item, if no decision is planned;

–              within 7 days after the publishing of this announcement, submit draft decisions about the items of agenda.  Should all submitted draft decisions be reviewed and declined, shareholders may submit their proposed draft decisions during the Annual General Meeting of Shareholders itself;

–              should the shareholder submit an inquiry at least 7 days before the Annual General Meeting of shareholders, the Management Board shall at least 3 days before the Annual General Meeting of shareholders provide the requested information about the items included in the agenda. It is a duty of the Management Board to upon the request of the shareholder provide information about the economic situation of the company to the extent necessary for objective decision-making of the particular item on the agenda.

Shareholders may see the draft resolutions of the Annual general Meeting of Shareholders from May 28, 2015 until June 10, 2015 on working days from 09:00 until 16:00 in Olaine, Rupnicu iela 5, in the Legal division of JSC Olainfarm, if scheduled in advance through telephone + 371 6 7013 870 or on the web page of JSC Olainfarm https://lt.olainfarm.com, but on the day of the Annual General Meeting – at the registration desk.

Information about the Annual General Meeting and rights of the shareholders is also available at web page of JSC Olainfarm https://lt.olainfarm.com, the system of Central Storage of Regulated Information http://www.oricgs.lv and the web page of JSC NASDAQ Riga http://www.nasdaqomxbaltic.com.

JSC Olainfarm Сonsolidated and PARENT Сompany’s Annual Report for Year 2014, Report of Independent Auditors, Report of the Council, Corporate Governance Report and Proposals Regarding Distribution of Profit are available at JSC Olainfarm web-site lv.olainfarm.com, web-site of the system of Central Storage of Regulated Information www.oricgs.lv and web-site of JSC  NASDAQ Riga www.nasdaqomxbaltic.com.

 

FORM OF POWER OF ATTORNEY: Pilnvaras_veidlapa_11062015_EN

 

Management Board of the JSC Olainfarm

 

 

 

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Announcement about convening of the Annual General Meeting of Olainfarm

Proposal of the Management Board of JSC Olainfarm regarding distribution of profit of 2014

on 11 gegužės, 2015 Komentavimas išjungtas įraše Proposal of the Management Board of JSC Olainfarm regarding distribution of profit of 2014

The amount of net profit made by JSC Olainfarm in 2014 is 11 424 000.00 (eleven million four hundred  and twenty four thousand) euros.

Managament Board of JSC Olainfarm proposes to shareholders of the company that the entire profit made in 2014 be retained by the company and fully reinvested into further development of JSC Olainfarm.

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Proposal of the Management Board of JSC Olainfarm regarding distribution of profit of 2014

Report of the Supervisory Council of JSC Olainfarm to the General Meeting of Shareholders

on 11 gegužės, 2015 Komentavimas išjungtas įraše Report of the Supervisory Council of JSC Olainfarm to the General Meeting of Shareholders

Supervisory Council of JSC Olainfarm has read the Consolidated and Parent Company’s Annual reports for 2014, as well as Independent Auditors’ Report about it. In addition, the Council has assessed financial position of the Company and Operations of the Management Board during this financial year and hence produced this Report.

The Council is satisfied that this has been the sixth consecutive year since the Company is demonstrating considerable profitability and sales of the Company continue growing. Although during 2014 serious economic turbulences were experienced by four markets important to the Company, it managed to increase its sales in almost all of them.  It resulted in overall sales of the Company increasing by more than 20%.  We would like to particularly stress Company’s successful cooperation with its Polish partners as well as increasing shipments to the World Health Organization. In both cases Company’s sales during this year have grown by different factors, and, which is particularly important, they contribute to independence from currently unstable markets of CIS countries.

Because of successfully established and growing chain of pharmacies as well as improving operations of Silvanols Ltd., company managed to stabilize its positions on Latvian market even further as Latvia is now very clearly a second most important market for the Company.  Every fifth euro during 2014 was received from Company’s Latvian partners, while every third euro came from sales to EU countries. Since pharmaceutical sector is very seriously regulated, the Supervisory Council regards this as an important achievement for market diversification.

Consolidated profit of the Company in 2014 was 12.2 million euros, while profit of the parent company exceeded 11.4 million euro.  Throughout the year we had reasonable expectations that the Company will be able to meets its profit guidances of 15 and 14 million euros respectively.  However, the rapid devaluation of Russian Ruble versus the Euro at the end of 2014, as well as adverse fluctuations of other currencies generated the total foreign exchange loss of 4.5 million euro, which made the meeting of initial profit targets practically impossible.  The Council has drawn the attention of the Management Board to the fact that this is yet another proof that further diversification of sales markets is of utmost importance for stable development of the company.

Since over the last number of years Company has been undergoing a phase of very significant sales increases, the Council has repeatedly drawn Board’s attention to the necessity to follow carefully if the Company has all the technological capacities necessary for further development.  Council very highly appreciates the work conducted by the Board for modernization of the production and respective raising of funding.  While during the last two years significant improvements have been made to modernize production processes, a lot remains to be done in the near future for improving production infrastructure.  Not only will it significantly improve environmental standards of the Company, but if funded using different sources of support, should also provide considerable economic effect.

Because of the necessity to continue with investments, including investments into production related infrastructure, as well as taking into consideration still unstable situation in sales markets important to the Company, the Council maintains its previously expressed proposal, to abstain from declaring dividends until the profits of 2015 are distributed.  If the situation does not deteriorate, the Council might ask the shareholders to approve dividends from the profit of 2015, with a payout ratio of 17.5%

The Council continues carefully following recent developments in Russia, which remains the main market of the Company.  Although on a numerous occasions, including this Report, the Council has drawn Board’s attention to necessity to diversify Company’s sales markets, in order to reduce dependency on a market as unstable as Russia today, by no means is the Council supporting any reduction of operations or activity in Russia.  Instead, the diversification should be promoted by achieving even bigger sales increases in other countries.  The council still regards an acquisition of similar profile company, whose sales markets are significantly different from Company’s markets as one of the particularly efficient ways for increasing sales diversity. Council invites the Board to put even more effort in considering development of this kind.

Council regards acquisition of 70.88% stake of Silvanols Ltd. and a further increase to nearly 97% an important but insufficient step to better sales market diversity.  In collaboration with Silvanols Ltd. the Company has a very real chance to strengthen its positions domestically, in CIS countries and other countries, where entry with food supplements is easier.

During 2014 the Council of the Company has performed its duties and supervised operations of the Company according to legislation, decisions by the general meetings.  The Council has approved financial statements and overviewed operations of Company’s management.  During the reporting period 25 Council meetings were held.  During these meetings, Board reports, plans, planned and actual budgets were reviewed.  Agenda items of general meetings were pre-approved. Council found no insufficiencies in Boards operations in 2014.  To a large extent the Board has been consulting the Council and has taken into account all previously mentioned and other recommendations of the Council targeted at safe further development of the Company.

The Council would like to take this opportunity to thank the Board, all employees of the Company, its partners for successful operations in 2014, congratulate shareholders with good results and wish a successful, stable and positively challenging 2015 and the further years.

 

Approved by the Council Meeting on May 5, 2015

 

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Report of the Supervisory Council of JSC Olainfarm to the General Meeting of Shareholders

Olainfarm Sets Group and Company Revenue Records

on 30 balandžio, 2015 Komentavimas išjungtas įraše Olainfarm Sets Group and Company Revenue Records

Consolidated profit and loss account of JSC Olainfarm for 2014 shows that the Group has made sales worth 93.7 million euros, which represents an increase by 20% compared to 2013, when revenues of the Group was 77.9 million euro.  Sales of the Company in 2014 were 81.6 million, which is an increase by 22% compared to 2013, when sales of the Company were 66.9 million euro.  Therefore, 2014 in terms of revenues was the best year in Company’s and Group’s history so far.

Net after tax profit of the Group in 2014 was 12.23 million euro, which is a reduction by 0.3% compared to 2013, when Group’s profit was 12.6 million euros. Profit of the Company in 2014. was 11.4 million euro, which is a reduction by 11% compared to 2013.  2014 was the third best year in terms of profit in corporate history so far.

Payment discipline of one of the Russian based wholesaling partners Oriola has significantly deteriorated since the end of 2014 and because information available on the financial status of that company causes concerns regarding its ability to settle outstanding payments, the Company, and hence the Group, have made provisions of 979 thousand euros, which equals 100% of  receivables due from Oriola.

During 2014 sales to all Group’s main markets continued increasing except for Kazakhstan, UK and Uzbekistan, where sales shrunk by 32%, 32% and 11% respectively. The most rapid sales increase during 2014 was achieved in Poland, where sales grew by 434%, and in The Netherlands, where products of WHO’s anti-tuberculosis program are being shipped. Sales to The Netherlands grew by 192%.  Significant sales growth has also been achieved in Lithuania (by 60%) and Belarus (by 40%).  Major sales markets of the Group during 2014 were Russia, Latvia, Ukraine, Belarus and The Netherlands.

During 2014 sales to all Company’s main markets continued increasing except for the same markets of Kazakhstan, UK and Uzbekistan, where sales shrunk by 32%, 32% and 11% respectively. The most rapid Company sales increase during 2014 was achieved in Poland, where sales grew by impressive 1136%, and in The Netherlands, where products of WHO’s anti-tuberculosis program are being shipped. Sales to The Netherlands grew by 192%.  Significant sales growth has also been achieved in Tajikistan (by 70%) and Belarus (by 40%).  Major sales markets of the Company during 2014 were Russia, Ukraine, Latvia, Belarus and The Netherlands.

Best selling products of the Company in 2014 were central nervous system medicines  „Neiromidin”, „Noofen” un „Adaptol”, antibacterial product „Furamag” and antiarrhythmic product „Etacizin”.

During 2014 38 registration cases have been approved in several countries, including such untraditional countries for JSC Olainfarm as Peru, Mongolia, Bhutan, Romania and Kosovo.   Several products are still in the process of obtaining MAs, among other countries, in Turkey, registration processes have been launched in Bosnia and Herzegovina and other new markets.  Preclinical trials of R-fenotropil are being conducted and totally new forms and line extensions of existing products are being developed.  Among other things the company works at development of a new nootropic medication, new product of nitrofurantoin group and a new food supplement.

In December of 2014 JSC Olainfarm established a fully owned subsidiary Olainfarm Azija in Kyrgyzstan and in March of 2015 – fully owned subsidiary Olainfarm Lithuania. Main operations of the newly established entities will be related to promotion of products made by the Group and its partners in these countries.

Annual meeting of shareholders of JSC Olainfarm held on April 29, 2014 approved operating plan of the Group and the Company.  According to it, sales of the Group in 2014 were planned to be 93 million euros, but the net profit was to reach 15 million euros.  According to this audited report for 2014, during this period 100.7% of annual sales target and 82% of annual profit target is met.

Sales and profit targets approved at the same AGM for the Company were 80 million and 14 million respectively.  According to this audited report for 2014, in 2014 102% of annual sales target and 82% of Company’s annual were attained.

 

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
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

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Olainfarm Sets Group and Company Revenue Records

March Sales of Olainfarm Increase By 36%

on 15 balandžio, 2015 Komentavimas išjungtas įraše March Sales of Olainfarm Increase By 36%

Preliminary consolidated sales results of JSC Olainfarm show that the sales have reached 8.7 million euro, which represents an increase by 36% compared to the same period one year ago.  The biggest sales increases were achieved in The Netherlands, where sales grew by 594%.  Sales to Tajikistan grew by 227%, but sales to Kazakhstan grew by 144%.  Significant shipments have also been made to Papua New Guinea and Turkmenistan. The major sales markets of JSC Olainfarm during March were Russia, Latvia, The Netherlands and Belarus.

March 2015, consolidated sales Share in total sales Changes to March 2014
Russia 31% 29%
Latvia 22% 11%
The Netherlands 13% 594%
Belarus 9% 26%
Ukraine 6% -34%
Kazakhstan 5% 144%
Tajikistan 4% 227%
Papua New Guinea 2% NA
Kyrgyzstan 1% 39%
Turkmenistan 1% NA
Other 6% -17%
Total 100% 36%

 

Sales of pharmacy chain of Latvijas aptieka Ltd. in March 2015 were 1.44 million euro, which represents an increase by 9% compared to the March of 2014.  57 pharmacies were operating during this period.  Sales of Silvanols Ltd. in March 2015 was 0.29 million euros, which represents an increase by 7%, compared to similar period one year ago. During March 2015 Silvanols Ltd. was selling its products in eight European countries.

According to preliminary consolidated results the sales of JSC Olainfarm during the first quarter of 2015 was 27.65 million euro, which represents an increase by 18% compared to the first quarter of 2014.  The most rapid sales increases 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%.  Major sales markets of JSC Olainfarm during the first quarter of 2015 were Russia, Latvia, Ukraine, The Netherlands and Belarus.

3 months of 2015, consolidated sales Share in total sales Changes to 3 months of 2014
Russia 37% 27%
Latvia 21% 9%
Ukraine 12% 14%
The Netherlands 8% 157%
Belarus 6% -26%
UK 3% 0%
Kazakhstan 2% 106%
Tajikistan 1% 173%
Kyrgyzstan 1% 129%
Lithuania 1% 11%
Other 7% -16%
Total 100% 18%

 

Sales of pharmacy chain of Latvijas aptieka Ltd. during the first quarter of 2015 were 4.22 million euro.  Sales of Silvanols Ltd. during this period were 1.1 million euro, and sales were made to 12 European countries.

According to preliminary unconsolidated sales results of JSC Olainfarm for March 2015, the sales were 7.72 million euro, which represents an increase by 45% compared to the same period one year ago  The biggest sales increases were achieved in The Netherlands, where sales grew by 594%.  Sales to Tajikistan grew by 227%, but sales to Kazakhstan grew by 144%.  Significant shipments during this period were also made to Papua New Guinea and Turkmenistan.  Major sales markets of JSC Olainfarm during March 2015 were Russia, The Netherlands, Latvia, Belarus, Ukraine and Kazakhstan.  In total during Marchs 2015, products of JSC Olainfarm were sold to 24 countries in five continents.

March 2015, unconsolidated sales Share in total sales Changes to March, 2014
Russia 34% 29%
The Netherlands 14% 594%
Latvia 14% 51%
Belarus 10% 26%
Ukraine 7% -34%
Kazakhstan 6% 144%
Tajikistan 5% 227%
Papua New Guinea 2% NA
Kyrgyzstan 1% 39%
Turkmenistan 1% NA
Other 5% -31%
Total 100% 45%

 

According to preliminary unconsolidated sales figures of JSC Olainfarm for three months of 2015, the sales during this period were 24.57 million euro, which represents an increase by 23% compared to the same period one year ago.  The most rapid sales increases were achieved in Tajikistan, The Netherlands, Kyrgyzstan and Kazakhstan, where sales respectively grew by 173%, 157%, 129% and 106%.  According to preliminary unconsolidated sales results, the major sales markets of JSC Olainfarm in three months of 2015 were Russia, Ukraine, Latvia, The Netherlands and Belarus.  In total, during three months of 2015 products of JSC Olainfarm were sold in 31 countries in 5 continents.

3 months of 2015, unconsolidated sales Share in total sales Changes to 3 months of 2104
Russia 41% 27%
Ukraine 14% 14%
Latvia 13% 43%
The Netherlands 9% 157%
Belarus 7% -26%
UK 3% 0%
Kazakhstan 3% 106%
Tajikistan 1% 173%
Kyrgyzstan 1% 129%
Uzbekistan 1% -43%
Other 6% -18%
Total 100% 23%

 

According to preliminary sales target estimates of JSC Olainfarm, unconsolidated sales of the company in 2015 could reach 84 million euros, while consolidated sales could be as high as 100 million euro.  According to these preliminary sales figures, during three months of 2015 the company has attained 29% of annual estimate for unconsolidated sales and 28% of annual estimate for consolidated sales.

 

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
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

 

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March Sales of Olainfarm Increase By 36%

Olainfarm’s Sales in February Increase by 56%, Export to Kosovo Commenced

on 13 kovo, 2015 Komentavimas išjungtas įraše Olainfarm’s Sales in February Increase by 56%, Export to Kosovo Commenced

Preliminary consolidated sales results of JSC Olainfarm for February 2015 show that company’s sales have reached 11.4 million euros, which is an increase by 56% compared to the same period one year ago.  The biggest sales increases were achieved to Moldova, where sales grew by 1288%, sales to Kyrgyzstan grew by 458%, and sales to The Netherlands grew by 167%, while sales to Russia grew by 114%. In February 2015, JSC Olainfarm started exports of final dosage forms to Kosovo. First shipment to this market was worth a little more than 60 thousand euros. The biggest sales markets of JSC Olainfarm in February 2015 were Russia, Latvia, Ukraine, Belarus and The Netherlands.

February 2015, consolidated sales

Share in total sales

Changes to February 2014

Russia 46% 114%
Latvia 17% 13%
Ukraine 15% 74%
Belarus 7% 8%
The Netherlands 5% 167%
Kyrgyzstan 2% 458%
Kazakhstan 1% 40%
Bulgaria 1% 35%
Lithuania 1% 59%
Moldova 1% 1288%
Other 4% -54%
Total 100% 56%

 

Sales of the pharmacy chain of Latvijas Aptieka Ltd., fully owned by JSC Olainfarm in February 2015 were 1.34 million euro, which is an increase by 9% compared to the same period of last year.  57 pharmacies were operating during February.  Sales of Silvanols Ltd. in this period were 0.43 million euros, which is an increase by 39% compared to February 2014.  In February 2015 Silvanols Ltd. sold its products to 7 European countries.

According to preliminary consolidated sales figures, in two months of 2015 sales of JSC Olainfarm were 19.17 million euros, which represents an increase by 13% compared to two months of 2014. The most rapid sales increases were achieved in Kyrgyzstan, where sales grew by 215%, sales to The Netherlands grew by 60%, while sales to Kazakhstan grew by 56%.  Major sales markets of JSC Olainfarm in two months of 2105 were Russia, Latvia, Ukraine, The Netherlands and Belarus.

2 months of 2015, consolidated sales

Share in total sales

Changes to 2 months of 2014

Russia 40% 28%
Latvia 21% 10%
Ukraine 15% 33%
The Netherlands 6% 60%
Belarus 5% -45%
UK 4% 0%
Kyrgyzstan 1% 215%
Kazakhstan 1% 56%
Uzbekistan 1% 5%
Lithuania 1% 30%
Other 5% -36%
Total 100% 13%

 

In first two months of 2015 sales of Latvijas Aptieka Ltd. were 2.8 million euros, while sales of Silvanols Ltd. were 0.82 million euros.  Silvanols Ltd. made its sales in 7 European countries.

According to preliminary unconsolidated sales figures of  JSC Olainfarm, sales of the company during February 2015 were 10.36 million euros, which represents an increase by 65% compared to the same period one year ago. The biggest sales increases were achieved in Azerbaijan, where sales grew by 99010%, sales to Moldova grew by 1288%, sales to Kyrgyzstan by 458%, sales to The Netherlands by 167%, and sales to Russia by 114%. The biggest sales markets of JSC Olainfarm in February 2015 were Russia, Ukraine, Latvia, Belarus and The Netherlands.  During February 2015, JSC Olainfarm sold its products in 17 Asian and European countries.

February 2015, unconsolidated sales Share in total sales Changes to February 2014
Russia 50% 114%
Ukraine 17% 74%
Latvia 10% 39%
Belarus 8% 8%
The Netherlands 6% 167%
Kyrgyzstan 2% 458%
Kazakhstan 2% 40%
Bulgaria 1% 35%
Moldova 1% 1288%
Azerbaijan 1% 99010%
Other 3% -66%
Total 100% 65%

 

In 2 months of 2015, according to preliminary unconsolidated sales results, the sales of JSC Olainfarm were 17.07 million euros, which represents an increase by 16% compared to the same period of 2014.  The most rapid sales increases have been achieved in Kyrgyzstan, The Netherlands and Kazakhstan, where sales grew by 215%, 60% and 56% respectively. According to preliminary unconsolidated results major sales markets of JSC Olainfarm in two months of 2015 were Russia, Ukraine, Latvia, The Netherlands, Belarus and the UK.  In total in two months of 2015 AS Olainfarm sold its products to 23 countries on 4 continents.

2 months of 2015, unconsolidated sales Share in total sales Changes to 2 months of 2014
Russia 45% 28%
Ukraine 17% 33%
Latvia 13% 42%
The Netherlands 7% 60%
Belarus 5% -45%
UK 5% 0%
Kyrgyzstan 1% 215%
Kazakhstan 1% 56%
Uzbekistan 1% 5%
Bulgaria 1% -15%
Other 4% -45%
Total 100% 16%

 

According to preliminary estimates the Company expects its unconsolidated sales of 2015 to reach 84 million euro, while its consolidated sales are expected to be at 100 million euro.  Preliminary sales numbers published herein, show that in 2 months of 2015 the company has attained 20% of its annual estimate of unconsolidated sales and 19% of its annual estimate of consolidated sales.

 

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
Member of the Board
JSC Olainfarm
Tel: +371 6 7013 717
Cell: +371 2 6448 873
E-mail: slapinsh@olainfarm.lv

 

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Olainfarm’s Sales in February Increase by 56%, Export to Kosovo Commenced