Olaine, May 31, 2017

Consolidated Sales of Olainfarm in First Quarter Reach 28.6 million euros

Consolidated sales of AS Olainfarm in first quarter of 2017 reached 28.6 million euros, which represents an increase by 9% compared to the first quarter of 2016.  The main sales markets of the Group during this period were Russia, Latvia, Belarus, Ukraine and The Netherlands. In terms of sales, this has been the best first quarter and second best overall quarter in corporate history.

During the 1^st quarter of 2017 sales of Olainfarm continued growing in all its major sales markets, except Ukraine, where they dropped by 59% and Kazakhstan, where they dropped by 21% compared to the first quarter of 2016.  The biggest sales increase during the three months period was achieved in Georgia, where sales grew by 694%, The Netherlands, where sales grew by 271%, Italy, where sale grew by 120% and Germany, where sales increased by 99%. 

During the first quarter of 2017 significant changes have occurred to the structure of bestselling products, as Adaptol, which was the bestselling product in 1st quarter of 2016 is now only the third bestselling.  Soluble furagin products (Furamag and Furasol) have become the bestselling product of Olainfarm, leaving Neiromidin, the long-term bestseller in the second positions.  Overall, the distribution of sales between top 10 products has become more even as the leading product makes up only 16% of sales of Olainfarm products.

During the reporting period, registration processes were completed in Armenia, Albania and Azerbaijan.  Registration processed have been started in Nepal and continued in Turkey, Armenia, Myanmar and Vietnam. Synthesis development is completed for anticancer and antituberculosis substances new to the company.

It is proposed, that Annual meeting of shareholders of A/s “Olainfarm” to be convened on June 1, 2017 approves 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.  According to this unaudited report for 1st quarter of 2016, during the first three months 23% of annual sales target and 24% of annual profit target is met.