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Olainfarm Group’s financial performance in the first half reached new highs – sales were 66.4 million EUR; net profit jumps to 12.2 million EUR
Emitents Olainfarm, AS (213800WCG52W62ENOP27)
Veids 1.2 Pusgada finanšu pārskati un revīzijas ziņojumi / ierobežotas pārbaudes
Valoda EN
Statuss Publicēts
Versija
Datums 2019-08-30 16:23:34
Versijas komentārs
Teksts
  • Group sales in the first half 2019 were 66.4 million EUR, which is 7% higher than a year earlier
  • EBITDA margin for the first six month 2019 was 26%, up from 17% year ago
  • Strong liquidity and decrease in leverage support further investment needs

“Looking at the six months of Olainfarm’s financial year and its good financial position, three things should be noted: 1) the high profitability of the company; 2) a significant increase in the company’s liquidity to historically high levels; and 3) active negotiations with banks and to provide new loans. These are also key factors that provide a solid foundation for a new development stage for organising drug dossiers and conducting clinical trials for medicines,” says Lauris Macijevskis, Chairman of the Management Board of JSC Olainfarm.

During the 2nd quarter of 2019, consolidated sales of the Olainfarm Group reached 31 647 thousand EUR which is an increase by 592 thousand EUR euros or 2% if compared to similar period of 2018. In the 2nd quarter EBITDA was 6 422 thousand EUR that surpassed the figure of the 2nd quarter of 2018 by 1 497 thousand EUR or 30%. Profit for this year’s second quarter was 3 984 thousand EUR, which is an increase by 49% or 1 312 thousand EUR in comparison with the second quarter of 2018.

During the first six months of this year Group’s sales reached 66 392 thousand EUR, which is an increase by 7% or 4 548 thousand EUR comparing to the same period of 2018. Group’s EBITDA during this year’s first six months was 16 928 thousand EUR, which is by 64% or 6 589 thousand EUR more than the half year results of the last year. Group’s reporting period profit for the six month 2019 was 12 244 thousand EUR and it increased by 112% or 6 458 thousand EUR in comparison with half year of 2018. Half-year 2019 sales, EBITDA and net profit mark new record levels for the first six months period.

Reporting period profit was positively influenced by gross margin increase, selling expense decrease, income from currency rate fluctuations but negatively impacted by increase of administrative expenses. Administrative expenses rose due to investments in medicine registration dossiers and such costs may not always be possible to capitalize as well as with review of salaries and bonus payments to personnel (excluding the Supervisory Council and the Management Board).

In accordance with the approved plans for 2019 Group’s sales target is fulfilled by 50% and profit figure by 96%.

During the first six months of this year sales volumes of the main Olainfarm products continued to increase. The share of the leading product Noofen is 19%, which is by one percentage point more than a year before. The share of the three largest products (Noofen, Neiromidin and Furamag/Furasol) comprise 52% that is by one percentage point higher than a year before (51%).

In April this year JSC Olainfarm signed agreement with a unit of UN (UN Office for Project Services) about deliveries of PASS in the amount of 3 million EUR during 2019-2020, which will keep this medicine among top products also in the future.

Group introduced two new alternative performance indicators - Net debt to EBITDA ratio and Debt – Service Coverage Ratio (DSCR). Net debt to EBITDA improved from 1.4 to 0.6 and DSCR from 1.8 to 2.5.

The first half of 2019 was also significant due to rapid improvements in cash position from 2 689 thousand EUR at the beginning of the year to 10 623 thousand EUR, which allows to continue investments in updating medicine dossiers in the coming years.

During the second quarter of 2019, more than 731 thousand shares of JSC Olainfarm, with total value of 4.5 million euros, were traded on Nasdaq Riga. Compared to the same period in 2018, the number of traded shares was by 726% more, while traded value was higher by 511%.

 

Consolidated statement of comprehensive income

Group

Group

 

Q2 2019

Q2 2018

M6 2019

M6 2018

 

EUR '000

EUR '000

EUR '000

EUR '000

Revenue

       31 647

       31 055

       66 392

       61 844

Cost of goods sold

     (11 818)

     (12 117)

     (25 309)

     (24 895)

Gross Profit

       19 829

       18 938

       41 083

       36 949

Selling expense

       (8 740)

       (9 510)

     (17 021)

     (18 181)

Administrative expense

       (7 299)

       (5 790)

     (13 632)

     (11 431)

Other operating income

           672

           687

         1 134

         1 405

Other operating expense

          (449)

       (1 093)

          (704)

       (1 804)

Share of profit of an associate

             25

               7

           103

             75

Financial income

           279

             19

         1 842

             39

Financial expense

          (327)

          (501)

          (488)

       (1 091)

Profit Before Tax

         3 990

         2 757

       12 317

         5 961

Corporate income tax

              (5)

            (87)

            (72)

          (177)

Deferred corporate income tax

              (1)

               2

              (1)

               2

PROFIT FOR THE REPORTING PERIOD

         3 984

         2 672

       12 244

         5 786

Other comprehensive income for the reporting period

             62

             41

           217

             36

Total comprehensive income for the reporting period

         4 046

         2 713

       12 461

         5 822

Total comprehensive income attributable to:

       

The equity holders of the Parent Company

         4 046

         2 713

       12 461

         5 822

Non-controlling interests

               -

               -

               -

               -

         

Basic and diluted earnings per share, EUR

             0.28

             0.19

             0.87

             0.41

 

Condensed Consolidated Statement of Financial Position

Group

   

30.06.2019

31.12.2018

   

EUR '000

EUR '000

 

     ASSETS

   

NON-CURRENT ASSETS

   

Intangible assets

         36 388

         36 619

Property, plant and equipment

         44 832

         43 697

Right-of-use assets

           7 230

                   -

Investment properties

           3 510

           3 492

Other non-current assets

               868

               983

 

TOTAL NON-CURRENT ASSETS

         92 828

         84 791

CURRENT ASSETS

   

Inventories

         29 744

         25 794

Receivables

         29 785

         34 637

Cash

         10 623

           2 689

 

TOTAL CURRENT ASSETS

         70 152

         63 120

TOTAL ASSETS

       162 980

       147 911

     
 

           EQUITY AND LIABILITIES

   

EQUITY

   

Share capital

         19 719

         19 719

Share premium

           2 504

           2 504

Reserves

                 (7)

             (224)

Retained earnings

         93 914

         83 079

 

TOTAL EQUITY

       116 130

       105 078

LIABILITIES

   

Non-current liabilities

   

Borrowings and lease liabilities

           6 590

           1 793

Deferred income

           3 418

           2 878

 

Total Non-Current Liabilities

         10 008

           4 671

Current liabilities

   

Borrowings and lease liabilities

         19 015

         23 236

Trade payables and other liabilities

         16 047

         14 540

Dividends payable

           1 409

                   -

Deferred income

               371

               386

 

Total Current Liabilities

         36 842

         38 162

 

TOTAL LIABILITIES

         46 850

         42 833

TOTAL EQUITY AND LIABILITIES

       162 980

       147 911

 

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 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.

 

Additional information:

Jānis Dubrovskis

Investor Relations Advisor of JSC Olainfarm

Ph.: +371 29178878

E-mail: janis.dubrovskis@olainfarm.com

 

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