Published: 2019-12-16 15:11:00 CET
Olainfarm
Inside information

In November Group’s revenues increased by 14%, revenues for the full year to exceed target

JSC Olainfarm preliminary consolidated results for November 2019 indicate that revenues increased by 14% compared to the same month last year and reached 12.4 million euro. At the same time consolidated results for the first eleven months of 2019 show that revenues reached 131.2 million euro, which is an increase by 17%, compared to the eleven-month period of 2018. Extraordinary rapid increase in sales was in Kirgizstan, Kazakhstan and Russian markets. Products of Olainfarm Group during this period were sold in 55 markets worldwide.

Consolidated sales in November show revenue increase in eight out of ten main markets. In Russia sales grew by 34%, in Belarus by 15%, in Ukraine by 2%, in Kazakhstan by 47%, in Moldova by 27%, in Kirgizstan by 335%. The sales resumed in Italy, where there were almost no sales a year before. Drop in sales was recorded in Latvia by 3% and in Uzbekistan by 19%.

Extra sales to pharmaceutical distributors in Russia continued also in November. It is important to notice that these revenues are achieved under commercial terms, which are customary to normal market practice and do not affect profitability.

In the eleven months of 2019 Olainfarm Group’s revenues were 131.2 million EUR that is 17% more than a year before. Contribution of the main sales markets of Olainfarm Group increased to 80% of the total revenue – Russia had the largest share of 34%, Latvia – 27%, Belarus – 11% and Ukraine – 8%. The Group’s other major sales markets include Kazakhstan, Uzbekistan, the Netherlands, Germany, Tajikistan and Lithuania. The most rapid sales growth during this eleven-month period was achieved in the Netherlands, where sales grew by 161% compared to the last year, and in Uzbekistan where sales grew by 33%. Sales in Russia improved by 30%, in Latvia and Belarus by 11% and in Kazakhstan by 15%, in Germany by 2% and in Tajikistan by 30%. Amongst the largest sales outlets a decline was marked in Ukraine (-1%) and in Lithuania (-21%).

Total sales forecasted for Olainfarm Group this year are in the amount of 133.3 million EUR, and it is fulfilled by 98%. Although December revenues will be lower than the last year’s results, nevertheless annual sales figure will exceed the result of 2018.

“With the approach of the end of this year, JSC Olainfarm Group’s forecasted turnover plan has been almost completed. The good results of this year allow us to look at the upcoming year with optimism. Additional sales to Russian drug distributors are continuing in November related to the application of the requirements regarding verification of medicinal products in Russia starting next year. Sales in this market are expected to be lower in the first months of the upcoming year. Next year, the main challenges for Olainfarm will be related to the changes in the regulation of the Eurasian Union drug market, the renewal of drug files according to markets, the increase of internal process efficiency as well as the implementation of a new strategy,” emphasizes Lauris Macijevskis, Member of the Management Board of JSC Olainfarm.

November 2019, consolidated sales  Sales, thous. EURShare in total salesChanges to November 2018
Russia4 64237%34%
Latvia3 19126%-3%
Ukraine1 33111%2%
Belarus1 0048%15%
Kazakhstan4293%47%
Croatia2162%N/A
Moldova1761%27%
Uzbekistan1581%-19%
Italy1501%16532%
Kirgizstan1411%335%
Other9688%-28%
Total12 407100%14%


11 months 2019, consolidated salesSales, thous. EURShare in total salesChanges to 11 months 2018
Russia43 96434%30%
Latvia35 21527%11%
Belarus14 78811%11%
Ukraine10 5458%-1%
Kazakhstan3 5163%15%
Uzbekistan2 9622%33%
Netherlands2 0302%161%
Germany1 8081%2%
Tajikistan1 6901%30%
Lithuania1 3461%-21%
Other13 36510%10%
Total131 228100%17%

Unconsolidated sales – November and 11 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 9.5 million euros in November, which represents an increase by 19% compared to November, 2018. Sale of products improved in Russia (+44%), Ukraine (+7%), Latvia (+3%), Belarus (+12%), Kazakhstan (+29%). The sales resumed in Italy and chemical substances in the amount of 216 thousand EUR were delivered to Croatia. The sales in November declined in Latvia by 9%, Uzbekistan by 19% and in Germany by 15%.

The unconsolidated sales results for the first eleven months of 2019 show that JSC Olainfarm sales reached 101.3 million euros, which represents an increase by 19% compared to the first ten months of 2018. During this reporting period, sales have increased in nine out of the ten major markets of Olainfarm – Russia (+40%), Latvia (+2%), Belarus (+9%), Uzbekistan (+33%), Kazakhstan (+2%), the Netherlands (+165%), Germany (+5%), Tajikistan (+27%) and in Italy (+69%). Revenues declined by 1% in Ukraine.

November 2019, unconsolidated salesSales, thous. EURShare in total salesChanges to November 2018
Russia4 35446%49%
Latvia1 46715%-9%
Ukraine1 33114%7%
Belarus7007%12%
Croatia2162%NA
Uzbekistan1582%-19%
Kazakhstan1542%29%
Italy1502%16532%
Germany1351%-15%
Kirgizstan1181%266%
Other7228%-33%
Total9 505100%19%


Eleven months 2019 unconsolidated salesSales, thous. EURShare in total salesChanges to eleven months 2018
Russia40 71740%40%
Latvia16 01316%2%
Belarus11 90312%9%
Ukraine10 27610%-1%
Uzbekistan2 9623%33%
Kazakhstan2 0382%2%
The Netherlands2 0522%165%
Germany1 8462%5%
Tajikistan1 6132%27%
Italy1 3151%69%
Other11 03511%6%
Total101 770100%19%

Results of subsidiaries – November and the first eleven months of 2019

The pharmacy chain SIA Latvijas Aptieka sales reached 2.3 million euros in November 2019, which represents a 7% increase compared to November 2018. 68 pharmacies were operating during this period. SIA Silvanols sales reached 0.6 million euros in November 2019, representing an increase by 17% vs. November 2018. The combined sales of Tonus Elast and Elast Medical in November 2019 were 0.8 million euros, which is by 26% less than this time last year. Olainmed and Diamed Medical Center sales reached 0.3 million euros, while the Belarus subsidiary NPK Biotest reached 0.3 million euros in sales in October that is higher by 31% than in November last year.

During the first eleven month period of 2019, SIA Latvijas Aptieka sales amounted to 23.8 million euros, demonstrating an 9% increase in comparison to the same time period last year. Sales of SIA Silvanols reached 5.4 million euros which is 1% less than last year. The combined sales of Tonus Elast and Elast Medical during eleven months this year totaled 8.8 million euros, which is a drop by 4%. Medical Centers Diamed and Olainmed revenues were 2.9 million euros during the first ten months of this year and the Belarus company NPK Biotest sales were worth 2.9 million euros, improving the result of the last year by 34%.

 November 201911 months 2019
Sales markets of Olainfarm2946
Sales markets of the Group3755
Number of pharmacies68 
Sales of Latvijas Aptieka, thous. EUR2 27123 841
Sales of Medical centers, thous. EUR2632 875
Sales of NPK Biotest, thous. EUR3042 864
Sales of Tonus Elast and Elast Medical, thous. EUR7808 842
Sales of Silvanols, thous. EUR6045 431

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 eleven months of 2019, 103% of annual target for unconsolidated sales and 98% 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
Email: janis.dubrovskis@olainfarm.com