Olaine, November 30, 2016

Sales of Olainfarm in Nine Months Reached 78.7 Million Euros

Unaudited income statement of AS Olainfarm for nine months of 2016 shows that with sales of 78.7 million euros, the group has experienced its best nine months in terms of sales.  Sales have increased by 9% compares to the same period of 2015.  Profit of  AS Olainfarm during this period was 7.8 million euros, whish represents a reduction by 36% compared to 2015.  Major sales markets during this period were Russia, Latvia, Ukraine and Belarus

This third quarter was also the best third quarter in corporate history, as the sales reached 25.2 million euros, whish represents an increase by 15% compared to the third quarter of 2015.  The net profit of the third quarter was 1.66 million euros, which is by 41% less than during the third quarter of 2015.  The profit was adversely influenced by provisions of 2.2 million euros for Ukrainian and Russian receivables and for potential value impairment of investments in Belarussian company NPK Biotest.

„Success of Olainfarm in the near future will to a large extent depend on how well will we diversify our sales markets and products and how good we will be at maintaining our existing positions.  Therefore we continue with registration of products in existing and new markets and acquire pharma related companies, which help us expand our exports geographically. Within the next two years we will have to integrate acquired companies into our group, in order to use all opportunities provided by joint administrative, marketing and logistics structure,” says Salvis Lapins, Member of Olainfarm’s Board.

During the first nine months of 2016, sales to most of Company’s key markets continued growing, except Russia, where they fell by 7% compared to nine months of 2015, and The Netherlands, when they fell by as much as 67% during the same period. It should be noted, however, that partially shipments previously made to WHO in The Netherlands this year were shipped directly to Ukraine, thus increasing Ukrainian sales. The biggest sales increases were achieved in Uzbekistan (+72%), Turkmenistan and Ukraine (+38% each) and the UK (+24%).  In total in nine months, products of AS Olainfarm were sold to 39 countries in four continents.

During the nine months  period, registration processes continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam. Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Bosnia and Herzegovina. During the third quarter registration of tree food supplements have been completed in Lithuania.

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 unaudited report for 9 months of 2016, during this period 79% of annual sales target and 78% of annual profit target is met.