Olaine, August 15, 2017

Seven Months Sales of Olainfarm Increase by 7%

Preliminary consolidated results of AS Olainfarm for July 2017 show that the sales have reached 8.67 million euros, which represents a reduction by 14% compared to July 2016. TH biggest sales increase was achieved in Moldova, where sales grew by 2825%.  Sales to Germany increased by 362%, and sales to France increased by 343%.  TH biggest sales reductions took place in Ukraine, where sales shrunk by 68%, Poland, where sales shrunk by 59% and Uzbekistan, where sales shrunk by 58%.  Major sales markets of Olainfarm Group during July 2017 were Russia Latvia and Belarus.

Sales of pharmacy chain of SIA Latvijas Aptieka in July 0217 reached 1.62 million euros, which represents an increase by 17% compared to the same period of 2016.  Sixty-eight pharmacies were operating during this period. Sales of SIA Silvanols during this period were 0.23 million euros, which represents a reduction by 28% compared to July 2016.  In July 2017 SIA Silvanols made sales to five European countries, including first ever shipments to France. Sales of SIA Tonus Elast during July 2017 were 0.81 million euros, which represents an increase by 56% compared to the same period of last year. Sales were made to 21 countries in two continents.

In seven months of 2017, according to preliminary consolidated numbers, sales of AS Olainfarm reached 67.9 million euros, which represents an increase by 7% compared to seven months of 2016.  The biggest sales increase was achieved in Germany, where sales increased by 406%.  Sales to The Netherlands increased by 225%, sales to Kazakhstan increased by 49%, but sales to Italy increased by 43%.  The biggest sales reduction took place in Ukraine, where sales shrunk by 44%.  Major sales markets of Olainfarm Group in seven months of 2017 were Russia, Latvia, Belarus and Ukraine.

Sales of pharmacy chain of SIA Latvijas Aptieka in seven months of 2017 reached 11.9 million euros, which represents an increase by 10% compared to the same period of 2016.  Sales of SIA Silvanols during this period reached 3 million euros, which represents an increase by 11% compared to seven months of 2016.  SIA Silvanols sold its products to ten European countries and with the help of AS Olainfarm also to Lithuania, Russia, Azerbaijan, Belarus and Armenia.  Sales of SIA Tonus Elast in 7 months reached 4.7 million euros and its products were sold to 35 countries in four continents.

According to unconsolidated preliminary results, sales of AS Olainfarm in July 2017 reached 6.8 million euros, which represents a reduction by 20% compared to July of 2016.  The biggest sales increase was achieved in Germany, where sales grew by 385%, but the biggest sales reduction took place in Ukraine, where sales shrunk by 68%.  Sales to Poland shrunk by 60%, but sales to Uzbekistan shrunk by 58%.  Significant shipments during this period have also been made to Mongolia.  Major sales markets of AS Olainfarm during July 2017 were Russia, Latvia, Belarus and Ukraine. During July 2017, products of AS Olainfarm were sold to 24 countries in Europe and Asia.

According to unconsolidated preliminary results, sales of AS Olainfarm in seven months of 2017 reached 54.8 million euros, which is comparable to seven months of 2016.  The biggest sales increases during this period were achieved in Germany, where sales grew by 408% and The Netherlands, where sales grew by 225%.  The biggest sales reduction in seven months of 2017 took place in Ukraine, where sales shrunk by 44%. Major sales markets of AS Olainfarm during this period were Russia, Latvia Belarus and Ukraine.  In total, in 7 months of 2017, products of AS Olainfarm were sold to 43 countries in five continents.  

General meeting of shareholders of AS Olainfarm held on June 1, 2017 approved operating plan of the company, providing that unconsolidated sales of the company in 2017 will reach 96 million euros, while consolidated sales of the company will reach 127 million euros.  According to these preliminary sales numbers, in seven months of 2017 the company has met 57% of annual target for unconsolidated sales and 53% of annual target for consolidated sales.

 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:

         Salvis Lapins

         JSC Olainfarm

         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