Unaudited profit and loss account of JSC Olainfarm for nine months of 2015 shows that with the sales worth 71.9 million euros, the Group has experiences the best nine months in its corporate history. Sales have increased by 3%, while profit has remained almost unchanged, as it has shrunk by 1000 euros and equals 12.105 million euros. Main sales markets of JSC Olainfarm during this period were Russia, Latvia, Ukraine, Belarus and The Netherlands.

3rd quarter of 2015 has in terms of sales been the best third quarter in corporate history, as sales of the Group reached 21.8 million euros, which exceeds the sales made during 3rd quarter of 2014 by more than 2%. During this period the company made a net profit of 2.8 million euros, which represents a reduction by 12% compared to the same period of last year.

“Successful operations in Latvia and Lithuania and good cooperation with the World Health Organization’s anti-tuberculosis program are the key driving forces behind these record sales. However, we realize that continuing with such series of records becomes increasingly difficult as new challenges are appearing in several important CIS markets. In addition to economic instability and depreciating local currencies have left a significant impact on purchasing power of local population. In addition to these factors, governments of CIS countries use administrative methods to limit imports of different products, including pharmaceuticals. Therefore we have to continue searching for possibilities to further diversify our sales markets and strengthen our presence there”, says Salvis Lapins, Member of company’s Board.

During nine months of 2015 Company’s sales grew in Latvia (by 9%), The Netherlands (WHO shipments, by 181%), Kazakhstan (by 2%), Lithuania (by 185), and other countries (by 28% on average). Sales have been shrinking to Ukraine (by 15%), Belarus (by 7%), UK (by 9%), Uzbekistan (by 6%) and Russia (by 3%). In total, during this nine months period JSC Olainfarm was selling its products to 41 countries on five continents.

During the 3rd quarter, 5 registration processes have been completed in Azerbaijan, Ukraine and Romania. A food supplement Jogurt Babydrops has been registered in Latvia. Further extension of Gripoflex line has been launched.

Annual meeting of shareholders of JSC Olainfarm held on June 11, 2015 approved 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 9 months of 2015, during this period 72% of annual sales target and 81% of annual profit target is met.

JSC Olainfarm UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

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
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