Unaudited financial reports of JSC Olainfarm for six months of 2016 show that consolidated sales of the Company reached 53.5 million euros, which represents an increase by 7% compared to the first half of 2015. Therefore, this is yet another sales record. Net profit for the period was 6.1 million euros, which represents a reduction by 34% compared to the same period one year ago. During these six months, provisions of two million euros have been made for Ukrainian receivables. Major sales markets of JSC Olainfarm during this period were Russia, Latvia, Ukraine and Belarus.
„One of the main strategic activities of ours is to use our marketing and logistics experience to facilitate growth of our daughter companies in their existing and new markets. In order to strengthen the positions of Tonus Elast in Russia we just registered our fully owned daughter company Elast Medikl there. It will be exclusive importer and distributor of Tonus Elast in Russia,” says Valerijs Maligins, Chairman of Olainfarm’s Board.
During the first half of 2016, sales to most of Company’s key markets continued growing, except Ukraine, where they fell by 7% compared to six months of 2015, and Kazakhstan, when they fell by 12% during the same period. Since during the second quarter sales to Russia increased again, Russia has again become the largest market for the Company with 30% share in total sales. During six months of 2016, significant sales increase has been achieved in Italy, where sales grew by 194%, Uzbekistan, where sales grew by 134% and Turkmenistan, where sales grew by 97%. Major sales markets of JSC Olainfarm in first half of 2016 were Russia, Latvia, Ukraine and Belarus. In total during six months of 2016 Olainfarm’s products were sold to 38 countries in 4 continents.
During the first half of 2016 significant changes have occurred to the structure of bestselling products, as Neiromidin has again become the bestselling product with 17% share in total sales. Sales made during the second quarter have brought Furagin back to ten bestselling products replacing Remantadin. Overall concentration of sales has remained unchanged, as ten bestselling products make up only 89 % of sales.
Annual meeting of shareholders of JSC Olainfarm convened on June 7, 2016 approved 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 6 months of 2016, during this period 54% of annual sales target and 61% of annual profit target is met.
| Condensed Consolidated Statement of Financial Position | Group | ||
| 30.06.2016 | 31.12.2015 | ||
| EUR ‘000 | EUR ‘000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 28 339 | 20 591 | |
| Property, plant and equipment | 38 513 | 35 579 | |
| Financial assets | 4 530 | 4 917 | |
| TOTAL NON-CURRENT ASSETS | 71 382 | 61 087 | |
| CURRENT ASSETS | |||
| Inventories | 23 770 | 20 990 | |
| Receivables | 38 197 | 30 480 | |
| Cash | 3 656 | 5 574 | |
| TOTAL CURRENT ASSETS | 65 623 | 57 044 | |
| TOTAL ASSETS | 137 005 | 118 131 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 19 719 | 19 719 | |
| Share premium | 2 504 | 2 504 | |
| Reserves | 322 | 322 | |
| Retained earnings | 69 335 | 65 773 | |
| Non-controlling interests | 35 | 30 | |
| TOTAL EQUITY | 91 915 | 88 348 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 19 367 | 8 560 | |
| Deferred corporate income tax | 2 295 | 1 947 | |
| Deferred income | 3 030 | 2 656 | |
| Total Non-Current Liabilities | 24 692 | 13 163 | |
| Current liabilities | |||
| Borrowings | 6 590 | 4 258 | |
| Trade payables and other liabilities | 13 314 | 11 562 | |
| Deferred income | 494 | 800 | |
| Total Current Liabilities | 20 398 | 16 620 | |
| TOTAL LIABILITIES | 45 090 | 29 783 | |
| TOTAL EQUITY AND LIABILITIES | 137 005 | 118 131 | |
| Consolidated statement of comprehensive income | Group | Group | ||
| Q2 2016 | Q2 2015 | 6M 2016 | 6M 2015 | |
| EUR ‘000 | EUR ‘000 | EUR ‘000 | EUR ‘000 | |
| Net revenue | 27 387 | 23 045 | 53 517 | 50 069 |
| Cost of goods sold | (10 412) | (8 052) | (20 320) | (16 242) |
| Gross Profit | 16 975 | 14 993 | 33 197 | 33 827 |
| Selling expense | (7 779) | (6 375) | (14 624) | (13 443) |
| Administrative expense | (4 584) | (4 135) | (9 050) | (8 302) |
| Other operating income | 891 | 522 | 1 496 | 936 |
| Other operating expense | (2 496) | (1 877) | (4 251) | (3 335) |
| Share of profit of an associate | 22 | 23 | 39 | 95 |
| Income from investments in subsidiaries | – | – | – | – |
| Financial income | 1 042 | 268 | 1 299 | 2 258 |
| Financial expense | (69) | (55) | (109) | (111) |
| Profit Before Tax | 4 002 | 3 364 | 7 997 | 11 925 |
| Corporate income tax | (1 081) | (738) | (2 095) | (2 510) |
| Deferred corporate income tax | 82 | (21) | 214 | (135) |
| PROFIT FOR THE REPORTING PERIOD | 3 003 | 2 605 | 6 116 | 9 280 |
| Other comprehensive income for the reporting period | – | – | – | – |
| Total comprehensive income for the reporting period | 3 003 | 2 605 | 6 116 | 9 280 |
| Total comprehensive income attributable to: | ||||
| The equity holders of the Parent Company | 3 003 | 2 605 | 6 111 | 9 276 |
| Non-controlling interests | – | – | 5 | 4 |
| Basic and diluted earnings per share, EUR | 0.21 | 0.18 | 0.43 | 0.66 |
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 40 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
