Olaine, June 18, 2018

Sales Of Olainfarm In Six Months Increase By 5%. The Fastest Growth Recorded In Japan And Belarus

Consolidated Results of June and 6 months of 2018

Preliminary consolidated Olainfarm Group sales in June 2018 reached 11.8 million euros, which represents an increase by 16% compared to sales of June 2017. The half-yearly preliminary results also demonstrated 5% growth vs. the same period of 2017 and reached almost 62 million euros. In the first half of the year Olainfarm Group was selling its’ products to 50 markets worldwide.

Positive performance in June was demonstrated by all core markets of the Group - especially Russia, where sales increased by 77%. Sales in Latvia reached 27% increase, while in Belarus the Group’s performance increased by 20%. Although some decline was registered in Ukraine, the half year performance in this significant market pleased with 12% increase, compared to the 6 months of Year 2017.

In June, sales in India increased by 53%, but Italy outperformed even by 140%. The cyclicality of orders has also positively impacted the results in June in particular outlets, where the holidays in May created a drop in the previous month. In total the Group traded its products in 33 markets.

The largest sales markets of the Olainfarm group in the first 6 month were Russia and Latvia, each representing 28% of the total sales volume; Belarus (13% share) and Ukraine (10% of total sales). The company's major trading partners also were Kazakhstan, Uzbekistan, Germany, Lithuania, Japan, Tajikistan. The most impressive increase in sales over the past 6 months was achieved in Japan, to which the company has successfully exported substances to treat Alzheimer's disease.

In the first half of the year, sales increased by 38% in Uzbekistan, by 35% in Germany, by 29% in Tajikistan, while in Lithuania, sales grew by 28% vs. the six months of the last year. A slight drop (-5%) was noted in Russia and Kazakhstan in the first half of the current year.

Performance of daughter companies in June and 6 months of 2018

Sales of pharmacies of SIA Latvijas Aptieka in June 2018 reached 1,9 million euros and remained at the level of the previous year. Sixty-nine pharmacies were operating during June. Sales of Silvanols in June grew by 72% and reached 0.5 million euros. Combined sales of Tonus Elast and its Russian sales arm Elast Medical were 0.8 million euros. Combined sales of health care companies Diamed and Olainmed in May reached 0.20 million euros, while sales of NPK Biotest reached 0.16 million euros.

Sales of pharmacies of SIA Latvijas aptieka in 6 months of 2018 reached 11.7 million euros, which represents an increase by 14% compared to the same period of 2017. Sales of SIA Silvanols in six months of 2018 were 2,9 million euros and demonstrated slight increase in comparison to the same period of the last year. Sales of SIA Tonus Elast in five months reached 4.5 million euros. Combined sales of health care companies Diamed and Olainmed in the first half of 2018 reached 1,27 million euros, but sales of NPK Biotest - 1.14 million euros.

Non- consolidated data for June and 6 months of 2018

According to non-consolidated preliminary data of June, JSC "Olainfarm" sold its products by 9.4 million euros, which is by 14% more than in June 2017. Sales volumes were positively affected by 86% increase in Russia and 25% increase in Latvia. In June, sales increased to 50% in India and by 140% in Italy. In Belarus, sales of Olainfarm in June have remained at the level of last year, while in Ukraine the turnover decreased by 37% due to the cyclical nature of the orders. In June, JSC "Olainfarm" products were sold in 26 countries.

The non-consolidated results of the first half-year show that JSC Olainfarm sold production for almost 48 million euros, keeping quantities at the level of the previous year. The first half of the year has proven to be very successful for the company in almost all major outlets. The fastest raise in the six months has been noted in Japan, where the sales grew by 324% vs. the corresponding period of last year. Sales increased by 36% in Germany, by 28% in Uzbekistan, by 47% in Lithuania, by 37% in Tajikistan and by 26% in Belarus. In its’ home market JSC Olainfarm also performed with 20% turnover growth.

According to the estimates of JSC Olainfarm, the unconsolidated turnover of the company in 2018 could reach 96 million euros, while the consolidated turnover - 130 million euros. According to the preliminary turnover figures published here, in the 6 months of 2018, 50% of the total unconsolidated turnover planned for 2018 and 48% of the planned annual consolidated turnover has been achieved.

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 60 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