Published: 2019-10-15 08:44:00 CEST
Inside information

In September revenues increased by 30%, substantial increase in all major markets

JSC Olainfarm preliminary consolidated results for September 2019 indicate that revenues increased by 30% compared to the same month last year and reached 12.4 million euro. At the same time consolidated results for the first nine months of 2019 show that revenues reached 98.8 million euro which is an increase by 11%, compared to the nine-month period of 2018. Extraordinary rapid increase in sales was in Ukraine, Kazakhstan and Uzbekistan markets. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

Consolidated sales in September show revenue increase in all of the main markets. In Russia sales grew by 21%, in Latvia by 9%, in Belarus by 67%, in Ukraine by 137%, in Kazakhstan by 823%, in Moldova by 46%, in Uzbekistan by 542%, in Lithuania by 63% and in Poland by 45%. Brazil was among the largest markets where products were sold in amount of 151 thousand EUR.

In the nine months of 2019, the main sales markets of Olainfarm Group continued to contribute 78% of the total revenue – Latvia’s  and Russia’s share was 28%, Belarus (12% share) and Ukraine (8% share). Other major sales markets included Kazakhstan, Uzbekistan, the Netherlands, Germany, Tajikistan and Italy. The most rapid sales growth during this nine-month period was achieved in the Netherlands, where sales grew by 188% compared to the last year, and in Uzbekistan where sales grew by 50%. Sales in Russia improved by 10%, in Latvia by 12%, in Belarus by 9%, in Kazakhstan by 13%, in Tajikistan by 18% but in Italy by 40%. Amongst the largest sales outlets a decline was marked in Ukraine (-1%).

JSC "Olainfarm" continues to show strong sales results by increasing sales in all major markets in September. We are also expanding our cooperation with new foreign partners, such as those from Egypt and Brazil. Deliveries of the anti-tuberculosis drug PASS sodium will continue in October, according to the contract. With the aim of strengthening both production and export capacity, we are expanding our manufacturing facility, acquiring new equipment, and strengthening the company’s marketing team by attracting a professional with long-standing experience, “says Lauris Macijevskis, Chairman of the Management Board of JSC Olainfarm.

September 2019, consolidated sales  Sales, thous. EURShare in total salesChanges to September 2018
Russia4 84139%21%
Latvia3 21226%9%
Belarus1 1689%67%
Other1 1159%0%
Total12 404100%30%

9 months 2019, consolidated sales Sales, thous. EURShare in total salesChanges to 9 months 2018
Russia 28 97329%10%
Latvia28 37529%12%
Belarus11 90612%9%
Ukraine8 1218%-1%
Kazakhstan2 5553%13%
Uzbekistan2 4272%50%
Netherlands1 8022%188%
Germany1 4982%4%
Tajikistan1 2671%18%
Italy1 1021%40%
Other10 76911%4%
Total98 797100%11%

Unconsolidated sales – September and 9 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 9.5 million euros in September, which represents an increase by 37% compared to September, 2018. Sale of products improved in Russia (+27%), Latvia (+16%), Belarus (+9%), Ukraine (+95%), Kazakhstan (+736%), Uzbekistan (+542%) and Mongolia (722%). Active pharmaceutical ingredients were sold to clients in Brazil, Egypt and India.

The unconsolidated sales results for the first nine months of 2019 show that JSC Olainfarm sales reached 75 million euros, which represents an increase by 11% compared to the first nine months of 2018. During this reporting period, sales have increased in nine out of the ten major markets of Olainfarm – Russia (+16%), Latvia (+4%), Belarus (+6%), Uzbekistan (+50%), the Netherlands (+189%), Kazakhstan (+1%), Germany (+4%), Tajikistan (+16%) and in Italy (+47%). Revenues declined by 2% in Ukraine.

September 2019, unconsolidated sales Sales, thous. EURShare in total salesChanges to September 2018
Russia4 47647%27%
Latvia1 53416%13%
Kazakhstan 3544%736%
Total9 523100%37%

Nine months 2019 unconsolidated sales Sales, thous. EURShare in total salesChanges to nine months 2018
Russia26 39035%16%
Latvia12 90117%4%
Belarus9 63813%6%
Ukraine7 85610%-2%
Uzbekistan2 4273%50%
The Netherlands1 8022%189%
Kazakhstan1 5502%1%
Germany1 4872%4%
Tajikistan1 2152%16%
Italy1 1021%47%
Other8 55411%4%
Total74 923100%11%

Results of subsidiaries – September and the first nine months of 2019

The pharmacy chain SIA Latvijas Aptieka sales reached 2.2 million euros in September 2019, which represents a 11% increase compared to September 2018. 68 pharmacies were operating during this period. SIA Silvanols sales reached 0.6 million euros in September 2019, representing an increase by 4% vs. September 2018. The combined sales of Tonus Elast and Elast Medical in September 2019 were 0.8 million euros, which is by 1% less than this time last year. Olainmed and Diamed Medical Center sales reached 0.27 million euros, while the Belarus subsidiary NPK Biotest reached 0.28 million euros in sales in September that is higher by 43% than in September last year.

During the first nine month period of 2019, SIA Latvijas Aptieka sales amounted to 19.2 million euros, demonstrating an 8% increase in comparison to the same time period last year. Sales of SIA Silvanols reached 4.2 million euros which is 2% less than last year. The combined sales of Tonus Elast and Elast Medical during nine months this year totaled 7.1 million euros which is an increase by 1%. Medical Centers Diamed and Olainmed revenues were 2.3 million euros during the first nine months of this year and the Belarus company NPK Biotest sales were worth 2.3 million euros, improving the result of the last year by 33%.

 September 2019 9 months 2019
Sales markets of Olainfarm3345
Sales markets of the Group3854
Number of pharmacies68 
Sales of Latvijas Aptieka, thous. EUR2 16719 199
Sales of Medical centers, thous. EUR2642 316
Sales of NPK Biotest, thous. EUR2812 258
Sales of Tonus Elast and Elast Medical, thous. EUR8337 138
Sales of Silvanols, thous. EUR6074 179

According to the JSC Olainfarm budget, unconsolidated sales are planned to reach 99 million euros in 2019, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first nine months of 2019, 76% of annual target for unconsolidated sales and 74% of annual target for consolidated sales have been reached.

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
Phone: +371 29178878