Consolidated Sales of Olainfarm Reached 122 Million Euros

Consolidated profit and loss calculation of AS Olainfarm for 2017 shows that with the sales worth 122 million euros the Group has set the new sales record.  Sales in 2017 increased by 10% compared to the sales of 2016.  The net profit remained at the level of 2016 and was 11.63 million euros.

Board of AS Olainfarm proposes a dividend of 0.21 euros per share from the profit of 2017. Such a dividend will be possible if audited statements for 2017 do not deviate significantly from unaudited ones.

“Successful operations of the Company in future will largely depend on its ability to diversify its sales markets and products and to preserve its current position in its key markets. In this respect, the Company continues taking all steps necessary to obtain the market authorisations in Turkey, where the first approvals are expected by middle of 2018.  The Company may continue acquiring daughter companies in several areas related to pharmaceutical sector, possibly with different sales markets. An important precondition for more efficient operations would be an ability to integrate already acquired companies and optimize the joint administrative, logistics and marketing structure,” says Olegs Grigorjevs Chairman of the Board of AS Olainfarm.

Sales during the fourth quarter of 2017 shrunk by 1% compared to the same period of 2016 and reached 31.7 million euros.  Net income of the group in 4^th quarter was 5 million euros, which represents an increase by 32% compared to the fourth quarter of 2016, making this one of the best quarters in terms of profitability.

Relatively the biggest sales increase in 2017 was achieved in Germany, where sales grew by 103%.  Sales to The Netherlands grew by 57%, while sales to Belarus increased by 21%.  From all the major sales markets of the Group, only sales to Poland, Uzbekistan and Ukraine experienced some reduction.  During the entire year of 2017, compared to its first nine years, share of Russia in its total sales increased from 33% to 35%.  Share of sales to other countries have remained relatively unchanged.  Major sales markets of Olainfarm Group in 2017 were Russia, Latvia, Ukraine and Belarus.

During 2017, new registration processes were completed in Latvia, Kyrgyzstan, Moldova Armenia and Azerbaijan.  Registration of several medicines produced by NPK Biotest continue in Belarus has also been completed. Registration processes are still ongoing in Nepal, Armenia, Turkey, Myanmar, Cameroon and Vietnam. Registration of new product Jogurt Actio has started in several markets. New synthesis schemes have been developed for synthesis of anticancer and anti-tuberculosis medicines.

Annual meeting of shareholders of A/s “Olainfarm” convened on June 1, 2017 approved operating plan of the Group for 2017.  According to it, sales of the Group in 2017 are planned to be 127 million euros, but the net profit will reach 15.5 million euros.  Because of poor profitability after the third quarter the management reviewed its profit guidance to either 9 million euros or ten million euros, subject to the possibility to reverse the deferred tax liability.  According to this report, annual sales target has been attained by 96%, while net profit guidance has been exceeded by  15%.

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