Olaine, October 16, 2017

Sales of Olainfarm in September Increase by 17%

Preliminary consolidated results of AS Olainfarm for September 2017 show that sales made during this month reached 9.63 million euros, which represents an increase by 17% compared to September 2016.  The biggest sales increase was achieved in Uzbekistan, where sales grew by 388%.  Sales to Albania grew by 232%, sales to Germany grew by 159%, sales to Russia grew by 69% but sales to Ukraine increased by 54%.  The biggest sales reduction happened in The Netherlands, where sales shrunk by 73%.  Major sales markets of the Group during September 2017 were Russia, Latvia, Ukraine and Belarus.

Sales of pharmacies of SIA Latvijas Aptieka during September 2017 were 1.94 million euros, which represents an increase by 21% compared to September 2016.  Sixty-nine pharmacies were operating during this period.  Sales of SIA Silvanols in September 2017 were 0.55 million euros, which represents a reduction by 13% compared to the same period of last year.  During September 2017, SIA Silvanols sold its products in four European countries and with the mediation of AS Olainfarm also to Kazakhstan, Lithuania, Belarus, Russia, Armenia, Mongolia and Azerbaijan. Sales of SIA Tonus Elast in September reached 0.74 million euros, which represents an increase by 40% compared to September 2016.  Its products were sold to 16 countries in three continents.

According to preliminary consolidated results, sales of AS Olainfarm group in nine months of 2017 reached 85.61 million euros, which represents an increase by 9% compared to nine months of 2016.  The biggest sales increase during this period was achieved in Germany, where sales grew by 200%, but sales to The Netherlands increased by 133%.  The biggest sales reduction was experienced in Ukraine where sales shrunk by 39%.  Major sales markets of AS Olainfarm group in nine months of 2017 were Russia, Latvia, Belarus and Ukraine.

Sales of pharmacies of SIA Latvijas Aptieka in nine months of 2017 reached 15.7 million euros, which represents an increase by 13% compared to nine months of 2016.  Sales of SIA Silvanols in nine months reached 3.89 million euros, which represents an increase by 6% compared to 9 months of 2016.  Products of SIA Silvanols were sold to twelve European countries and with the help of AS Olainfarm also to Kazakhstan, Lithuania, Belarus, Russia, Armenia, Mongolia and Azerbaijan. Sales of SIA Tonus Elast in nine months reached 6.17 million euros and its products were sold to 37 countries in four continents.

According to preliminary unconsolidated results, sales of AS Olainfarm in September 2017 were 7.55 million euros, which represents an increase by 17% compared to September 2016.  The biggest sales increase was achieved in Uzbekistan, where sales grew by 388%.  Sales to Albania increased by 232%, sales to Germany increased by 161%, sales to Lithuania increases by 81%, sales to Ukraine increased by 63% and sales to Russia increased by 59%.  Biggest sales reduction was experienced in the Netherlands, where sales shrunk by 73% and in Kazakhstan, where sales shrunk by 69%.  Biggest sales markets during September 2017 were Russia, Latvia, Ukraine and Belarus.  During September 2017, products of As Olainfarm were sold to 32 countries in Asia and Europe.

According to preliminary unconsolidated results of As Olainfarm for nine months of 2017, sales of the company during this period reached 68.42 million euros, which represents an increase by 4% compared to nine months of 2016. The biggest sales increase was achieved in Germany, where sales increased by 202% and in The Netherlands, where sales grew by 133%.  Biggest sales reduction was experienced in Ukraine, where sales shrunk by 40%. Major sales markets of AS Olainfarm during this period were Russia, Latvia, Belarus and Ukraine.  In total, during nine months of 2017, products of Olainfarm were sold to 48 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 nine months of 2017 the company has met 71% of annual target for unconsolidated sales and 67% of annual target for consolidated sales.

 JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with 45 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