Olaine, August 31, 2016

Consolidated Sales of Olainfarm in Six Months Exceed 53 Million

Unaudited financial reports of AS 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 AS 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 AS 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 A/s “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.