Emitents | Olainfarm, AS (213800WCG52W62ENOP27) |
Veids | Informācija par akcionāru sapulcēm |
Valoda | EN |
Statuss | Publicēts |
Versija | |
Datums | 2016-05-08 23:57:11 |
Versijas komentārs | |
Teksts |
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 2015, 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 values very highly the work conducted by Company’s
Board during the last year, as it resulted not only in increased
sales volumes but also in record high profits. This has all
been achieved in times, when economic situation in several markets
important for the Company is facing stagnation or even heavy
recession. The Council shares the concerns of the Board
regarding declining sales in Belarus, which has for many years been
one of the most important markets for the company, therefore the
Council urges the Board to take all reasonably justified measures
to prevent further declining of sales in this country. The
Council is satisfied with very successful cooperation of the
Company with the World Health Organization and with very good
operations of Company in countries of Central Asia. Both these
factors have helped the Company to achieve 4% sales growth despite
previously mentioned issues in Russia, Ukraine and Belarus
During 2015 the Council has paid a very close attention to
development of several related companies of the Group. The
Council would like to particularly emphasize the rapid and positive
developments taking place at SIA Silvanols during 2015, when this
company, possibly for the first time in its history made
significant profit from its basic operations. Also, developments at
SIA Latvijas aptieka are worth noting as this company keeps
increasing number of its pharmacies and in 2015 the number was
comfortably above 60.
Consolidated profit of the company in 2015 reached 15.3 million
euros, but unconsolidated profit reached 14.6 million euros.
Both these numbers are the highest in corporate history and are
significantly higher than the results of 2014. Both, consolidated
and unconsolidated profit targets have been exceeded, but it should
however be noted, that positive foreign exchange fluctuations in
early months of 2015, when Russian Rouble gained significant
strength have contributed to it. The Council has drawn the
attention of the Board that in different circumstances the current
margins might be difficult to attain.
Relatively small sales growth, instable situation in several
important markets, stagnating or even declining sales of some of
Company’s main products have made the Council to again stress the
necessity to make greater effort to diversify Company’s sales
markets or products offered by companies of the Group. The Council
will support any reasonable steps contributing to this, including
acquisitions of new companies.
The Council is satisfied that the Board kept its promise previously
made to shareholders and after the two year dividend break is
suggesting that 17.5% of the profit made in 2015 be paid in
dividends. The Council suggests that, although the necessity
for the Company to make different investments will not diminish, in
order to observe the best interests of shareholders, no more
dividend breaks are held in future, should that be
possible.
During 2015 the Council of the Company has performed its duties and
supervised operations of the Company according to legislation,
decisions by the general meeting. The Council has approved
financial statements and overviewed operations of Company’s
management. During the reporting period 18 Council meetings
were held. During these meetings, Board reports, Board
composition, plans, planned and actual budgets were reviewed.
Agenda items of general meeting was pre-approved. Council found no
insufficiencies in Boards operations in 2015. The Board has
been in constant consultations with 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
and its partners for successful operations in 2015, to congratulate
shareholders with record high results of the last year and to wish
successful, stable and positively challenging 2016.
Approved by the Council Meeting on
May 6, 2016
Chairwoman of the
Council
Valentina Andrejeva
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:
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