Olaine, February 29, 2016

Profit of Olainfarm Increases to 14.8 Million Euros

Consolidated financial report of AS Olainfarm for 2015 shows that the Group has set yet another profit record, as it made a net profit of 14.8 million euros in 2015. This represents an increase by 21% compared to 2014 and by 7% compared to 2012, when the previous profit record of 13.88 million euros was set.

Sales of AS Olainfarm have increased by 4% compared to 2014 and was at 97.6 million euros. Thus, this has also been the best year in corporate history in terms of sales as well.

4th  quarter of 2015 has in terms of sales been the best last quarter in corporate history, as sales of the Group reached 25.7 million euros, which exceeds the sales made during 4th quarter of 2014 by 8%.  This has been achieved despite the fact that sales to many important markets, including, Ukraine, Belarus, UK and Poland were shrinking.

“Last year has really been a stamina test for Olainfarm in CIS markets. . Local currencies remained considerably turbulent in Russia, Belarus, Ukraine and Kazakhstan. Belarus continues tightening imports of several products, including pharmaceuticals.  Therefore we not only try to strengthen our marketing efforts in these countries to preserve our positions, but also work towards differentiation of our sales markets. This year we plan to make a lot of efforts to launch our Turkish sales and continue with what we have started in several other new markets," says Valerijs Maligins, Chairman of the Board of AS Olainfarm.

During 2015 the most rapid sales growth has been achieved to the Netherlands, where sales grew by 107%.  This is where products for World Health Organization’s anti-tuberculosis program are shipped.  In 2015 sales to Tajikistan increased by 39%, sales to Latvia increased by 11%, sales to Kazakhstan increased by 7% and sales to Uzbekistan increases by 3%.  Sales to all other countries increased by 23 on average. Sales to Belarus shrunk by 19%, sales to Poland shrunk by 13%, sales to Ukraine decreased by 7%, sales to UK shrunk by 6% and sales to Russia decreased by 1%.  Major sales markets of AS Olainfarm in 2015 were Russia, Latvia, Ukraine, Belarus and The Netherlands.

During the reporting registration processes have been launched in Bosnia And Herzegovina; Vietnam, Myanmar; GMP audit by Turkish pharmaceutical authorities has been passed, and bioavailability tests for Turkish registration completed, allowing the company to proceed with registration in Turkey. New forms have been developed for Gripoflex 325 (with reduced content of paracetamol), ACC 200mg powder, and lactose free Memantine tablets of 10mg and 20mg. The work continues at development of new combined prolonged activity form of nitrofurantoin. Two new food supplements have been developed and registered in Baltic countries with urological and hepatological application. Food supplement Jogurt Babydrops has been registered in the Baltics and is planned for further registration in 14 countries.  

During the 4th quarter alone 4 registration processes have been completed in Tajikistan, Turkmenistan and Moldova, files are being prepared for South Africa, Croatia and Iraq.

Annual meeting of shareholders of A/s “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 2015, during this period 96% of annual sales target and 99% of annual profit target is met.