Published: 2019-05-31 16:10:00 CEST
Olainfarm
Interim report (Q1 and Q3)

Olainfarm Group’s revenue in the first quarter reaches 34.7 million EUR; net profit tops 8.3 million EUR

During the 1st quarter of 2019, consolidated sales of the Olainfarm Group reached 34.7 million euros which is an increase by 4 million euros or 13% if compared to similar period of 2018. Such result marks a new record of first quarter revenues. Net profit for the 1st quarter is by far the largest in Olainfarm group’s history and reached 8.3 million euros. Earnings were positively affected by increase in revenues, smaller increase in costs of goods sold and administrative expenses and decline in selling expenses.

In the 1st quarter 2019 sales continued to climb in all the major markets. During the reporting period sales in Latvia and Belarus increased by over 900 thousand euros, in Russia – by around 880 thousand and in Ukraine – by close to 500 thousand euros.

During the first three months of this year sales of Olainfarm’s main products continued to increase. The bestselling product was Noofen with 18% share, which is the same as a year ago. Share of the three largest products was 49% that is less than last year (51%). Olainfarm started deliveries of PASS Sodium Salt to World Health Organization, which allowed this product to make in to the Top 10 products list.

In the 1st quarter of  2019, JSC Olainfarm has completed 3.4 mil. euro investments in production equipment, premises and software, as well as amended medicine registration documents and joined EU and regional Medicines Verification Organizations to comply with EU Directive on Falsified Medicinal Products (2011/62/ES) and EU Commission Delegated Regulation (EU 2016/161) requirements on safety indications and verification of medicinal products distributed in European markets.

JSC Olainfarm has received Latvian registration of generic final dosage form  Acetylcysteine Olainfarm for respiratory diseases treatment; has received European Pharmacopoeia’s Certificate of Sustainability (CEP) for active pharmaceutical ingredient Amantadine Hydrochloride produced by the company, as well as company’s active pharmaceutical ingredient Chlorobutanol Hydrate is registered for production of final dosage form product by cooperation partner in Germany.

On March 5, 2019 investor conference – webinar JSC Olainfarm has published the main financial indicators of the planned Group’s performance for the year 2019 - the Group’s net revenue for the year 2019 is planned 133.3 million euro and the Group’s net profit – 10.0 million euro. Based on the results of the 1st quarter the management has adjusted the plan by increasing net profit till 12.7 million euro, that are expected to be presented at the Annual General shareholders meeting. In accordance with this report on 1st quarter, 26% of net revenue annual plan is reached and 65% of net profit annual adjusted plan is reached.

During the first quarter of 2019, almost 157 thousand shares of AS “Olainfarm”, worth around 1.09 million euros, were traded on Nasdaq Riga. Compared to the same period in 2018, the number of traded shares was approximately the same while turnover was lower.

 

Condensed Consolidated Statement of  Financial Position
Group
   31.03.2019 31.12.2018
   EUR '000 EUR '000
    ASSETS   
NON-CURRENT ASSETS   
Intangible assets   36 496   36 619
Property, plant and equipment   43 520   43 697
Right-of-use assets   7 469   -
Investment properties   3 551   3 492
Other non-current assets   919   983
  TOTAL NON-CURRENT ASSETS   91 955   84 791
CURRENT ASSETS   
Inventories   27 403   25 794
Receivables   34 612   34 637
Cash   7 104   2 689
  TOTAL CURRENT ASSETS   69 119   63 120
TOTAL ASSETS   161 074   147 911
   
    EQUITY AND LIABILITIES   
EQUITY   
Share capital   19 719   19 719
Share premium   2 504   2 504
Reserves   (69)   (224)
Retained earnings   91 339   83 079
  TOTAL EQUITY   113 493   105 078
LIABILITIES   
Non-current liabilities   
Borrowings and lease liabilities   6 805   1 793
Deferred income   3 509   2 878
  Total Non-Current Liabilities   10 314   4 671
Current liabilities   
Borrowings and lease liabilities   21 055   23 236
Trade payables and other liabilities   15 841   14 540
Deferred income   371   386
  Total Current Liabilities   37 267   38 162
  TOTAL LIABILITIES   47 581   42 833
TOTAL EQUITY AND LIABILITIES   161 074   147 911





Consolidated statement of comprehensive income Group
  Q1 2019 Q1 2018
  EUR '000 EUR '000
Revenue   34 745   30 789
Cost of goods sold   (13 491)   (12 778)
Gross Profit   21 254   18 011
Selling expense   (8 281)   (8 671)
Administrative expense   (6 333)   (5 641)
Other operating income   462   718
Other operating expense   (255)   (711)
Share of profit of an associate   78   68
Financial income   1 563   20
Financial expense   (161)   (590)
Profit Before Tax   8 327   3 204
Corporate income tax   (67)   (90)
Deferred corporate income tax   -   -
PROFIT FOR THE REPORTING PERIOD   8 260   3 114
Other comprehensive income for the reporting period   155   (5)
Total comprehensive income for the reporting period   8 415   3 109
Total comprehensive income attributable to:   
The equity holders of the Parent Company   8 415   3 109
Non-controlling interests   -   -
   
Basic and diluted earnings per share, EUR   0.59   0.22


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
janis.dubrovskis@olainfarm.com

Attachment


Olainfarm_l_2019_consolidated FS_ENG.pdf