Olainfarm Demonstrates Consolidated Record Sales, Board Proposes Dividends

Consolidated profit and loss account of AS Olainfarm for 2016 shows that with the sales of 111.2 million euros, the Group has set the new record sales. Last year the sales grew by 14% compared to 2015.  Net profit in 2016 was 10.1 million euros, which is reduction by a third comparing to 2015, when the net profit was as high as 15.2 million. Profit of 2016 was very significantly influenced by provisions for receivables. The total of about 7 million euros were left for provisions.

Board of AS Olainfarm proposed a dividend of 0.66 euros per share from the profit of Parent company for 2016.  Should it be necessary, undistributed profits of other years may also be used. The Board proposes that dividends are paid in three equal installments at the ends of second, third and fourth quarter of 2017 respectively.

“2016 was important for Olainfarm not only because we acquired four new daughter companies, but also with the sales record we achieved as we surpassed the mark of 100 million.  In order to raise our targets every year, we have to get stronger every year.  Therefore we focus on integrating the daughter companies into our group, expand our product portfolio, strengthen our positions in existing markets and enter the new ones.  We also keep searching for new acquisition targets in different pharma related sectors," says Valerijs Maligins, Chairman of Olainfarm’s Board.

In terms of sales, fourth quarter of 2016 is again by far the best in corporate history.   During the fourth quarter of 2016, sales volumes have increased by 27% compared to similar period of 2015 and reached 32.6 million euro. Profit during this quarter reached 2.3 million, which is a reduction by 13% compared to the fourth quarter of 2015.  In fourth quarter alone provisions of 2.47 were made.

The biggest sales increase in 2016 was achieved in Uzbekistan, where sales increased by 65%. During 2016, compared to its nine months share of Russia in totals sales grew significantly (from 29% to 34%). This was facilitated by particularly large sales volumes to this country during the fourth quarter.  Share of Ukraine has dropped by 3 percentage points during the same period.  Shares of other markets have remained relatively unchanged. The biggest sales markets in 2016 were Russia, Latvia, Ukraine and Belarus.

During the reporting period, registration processes of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Ukraine, Mongolia, Armenia, Turkmenistan and Bosnia and Herzegovina. During the fourth quarter alone registration of ten products in five countries has been completed. Registration processes of a few more products have been started in Turkey.

Annual meeting of shareholders of AS 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 this unaudited report for 2016, during this period 111% of annual sales target and 101% of annual profit target is met.