English Latvian
Published: 2017-11-30 16:17:42 CET
Olainfarm
Interim report (Q1 and Q3)

Sales of Olainfarm in Nine Months Reach 90.4 Million Euros

Unaudited Consolidated Income Statement of AS Olainfarm for nine months of 2017 shows that during this period the Group made net sales of 90.4 million euros and in terms of sales these have been the best nine months in corporate history. Sales have increased by 15% compared to nine months of 2016. Net profit of the company in nine months was 6.6 million euros, which represents a reduction by 15% compared to 2016. Major sales markets of AS Olainfarm during this period were Russia, Latvia, Belarus and Ukraine.

Olaine, 2017-11-30 16:17 CET -- AS Olainfarm just had its best third quarter in terms of sales, as company’s sales reached 27.7 million euros, representing an increase by 10%.  During this quarter, the company made a net profit of 0.9 million euros, which represents a reduction by 46% compared to third quarter of 2016. Profit was significantly adversely impacted by forex loss of 0.5 million euros as well as provisions for assets deriving from acquisitions of SIA Klīnika Diamed, NPK Biotest and SIA “Kiwi Cosmetics”.

 

„This is the year when we are investing considerably in integration of our daughter companies into our group and into expansion of chain our representative offices.  At the same time, the work at developing some products that are new to the company has also been rather intensive, with particular emphasis on several anticancer and antituberculosis preparations. We expect that some first of them might be commercialized in two years from now,” says Valerijs Maligins, Chairman of Board of AS Olainfarm.

 

In nine months of 2017, sales to all key markets of AS Olainfarm continued growing, except Ukraine, where sales shrunk by 40% compared to nine months of 2016.  Reduction of sales to Ukraine was mainly caused by deteriorating economic situation in Ukraine and falling purchasing power, but also by the fact that some antituberculosis products that previously were sold to Ukraine directly, this year were sold to Ukraine via World Health Organization. The biggest sales increases were achieved in Germany (by 200%) and The Netherlands (by 133%).  In total in nine months of 2017 products of Olainfarm were sold to 48 countries in five continents.

 

During the reporting period, registration processes were completed in Armenia and Azerbaijan.  Registration processed have been started in Nepal and continued in Turkey, Armenia, Myanmar, Cameroon and Vietnam. Registration of medicines produced by NPK Biotest continue in Belarus.  Parent company itself has submitted one more dossier in Turkey and is soon expected to launch several painkilling an anti-inflammatory medicines. Registration of new product Jogurt ACtio has started in several markets.

 

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.  According to this unaudited report for nine months of 2017, during this period 71% of annual sales target and 43% of annual profit target is met. Taking into account a considerable deviation in schedule to achieving the profit target after the second quarter, the Board decided in September to review profit guidances downwards, setting them at 13.5 million for consolidated profit and 11 million for standalone profit.

 

Because of worse than expected profitability during the third quarter, the Board has again reviewed the profit guidances downwards, setting it at 9 million euros for consolidated and standalone profit, with a possibility of increasing it to 10 million if the reversion of deferred tax acquired as a result of business combination will be recognized.

 

 

 

Condensed Consolidated Statement of  Financial Position Group
    30.09.2017 31.12.2016
    EUR '000 EUR '000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets           36 914           31 860
Property, plant and equipment           42 771           40 943
Investment properties             2 209             1 963
Financial assets             2 775             6 514
  TOTAL NON-CURRENT ASSETS           84 669           81 280
CURRENT ASSETS    
Inventories           24 367           24 011
Receivables           35 354           36 124
Cash             4 057             3 165
  TOTAL CURRENT ASSETS           63 778           63 300
TOTAL ASSETS         148 447         144 580
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital           19 719           19 719
Share premium             2 504             2 504
Reserves                  40                322
Retained earnings           71 656           74 081
Non-controlling interests                  38                  37
  TOTAL EQUITY           93 957           96 663
LIABILITIES    
Non-current liabilities    
Borrowings           19 829           18 800
Deferred corporate income tax             3 231             3 025
Deferred income             2 466             2 810
  Total Non-Current Liabilities           25 526           24 635
Current liabilities    
Borrowings             9 208             7 020
Trade payables and other liabilities           19 274           15 769
Deferred income                482                493
  Total Current Liabilities           28 964           23 282
  TOTAL LIABILITIES           54 490           47 917
TOTAL EQUITY AND LIABILITIES         148 447         144 580

 

 

 

 

 

 

 

 

 

Consolidated statement of comprehensive income Group Group
  Q3 2017 Q3 2016 M9 2017 M9 2016
  EUR '000 EUR '000 EUR '000 EUR '000
Net revenue            27 665             25 158               90 384            78 675
Cost of goods sold           (10 921)              (9 685)             (34 851)           (30 005)
Gross Profit            16 744             15 473               55 533            48 670
Selling expense             (8 377)              (6 716)             (27 008)           (21 340)
Administrative expense             (5 423)              (4 529)             (16 872)           (13 579)
Other operating income                 732                  427                 1 753              1 923
Other operating expense             (1 862)              (2 400)               (3 460)             (6 651)
Share of profit of an associate                   10                   (12)                      70                   27
Income from investments in subsidiaries                      -                       -                        -                      -
Financial income                   59                    55                    215              1 354
Financial expense                (573)                   (98)               (1 913)                (207)
Profit Before Tax              1 310               2 200                 8 318            10 197
Corporate income tax                (398)                 (536)               (1 806)             (2 631)
Deferred corporate income tax                  (17)                     (7)                      86                 207
PROFIT FOR THE REPORTING PERIOD                 895               1 657                 6 598              7 773
Other comprehensive income for the reporting period                      -                       -                        -                      -
Total comprehensive income for the reporting period                 895               1 657                 6 598              7 773
Total comprehensive income attributable to:        
The equity holders of the Parent Company                 896               1 653                6 597              7 764
Non-controlling interests                   (1)                      4                       1                     9
         
Basic and diluted earnings per share, EUR                0.06                 0.12                   0.47                0.55

 

 

 

 

 

 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


Olainfarm_III_2017_consolidated FS_ENG.pdf