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JSC Olainfarm Informs About Registration Of New Collateral

on June 17, 2019

To finance its daily activities and investments Olainfarm Group in the past attracted loan facilities from SEB and ABLV banks. Such information is disclosed in financial statements. This year existing credit agreements were prolonged and simultaneously, according to the credit agreement, JSC Olainfarm provided additional collateral in favor of SEB bank, pledging Silvanols and Latvijas aptieka shares, being subsidiaries of Olainfarm; and in favor of ABLV bank – JSC Olainfarm’s debtors and inventory, as well as Tonus Elast shares.

In order to ensure the performance of liabilities of JSC Olainfarm in favor of ABLV bank, subsidiary of JSC Olainfarm Tonus Elast pledged its real estate and all assets as a pool of things.

At the moment the registration process of the above-mentioned collateral is ongoing and is to be completed soon.

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.

 

Information prepared by:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

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JSC Olainfarm Informs About Registration Of New Collateral

Olainfarm Group sales in May increase by 20%

on June 14, 2019

Consolidated sales – May and 5 months

Preliminary consolidated results of JSC Olainfarm for May 2019, show that the Group has made sales worth 10.4 million euros, which represents an increase by 20% compared to May 2018. Preliminary results for the first five months of 2019 demonstrate an increase by 15%, compared to the five months period of 2018, reaching 57.7 million euros. Products of Olainfarm Group during this period were sold in 50 markets worldwide.

According to consolidated sales numbers for May, four major sales markets of the Group remain the same: Latvia, where sales increased by 21% compared to May last year, Russia, with 15% sales increase in the same period, Ukraine with the sales increase by 15%, and Belarus with the 1% decrease. The sales have been increasing amongst the ten largest markets in May, with substantial deliveries to Uzbekistan, Kazakhstan and Tajikistan. Georgia was also one of the top markets in May, deliveries there take place several times a year.

In the five months of 2019, the main sales markets of Olainfarm Group remained the same: Latvia and Russia (each with 28% share), Belarus (13% share) and Ukraine (9% share). Other major sales markets included the Netherlands, Uzbekistan, Kazakhstan, Germany, Tajikistan and Lithuania. The most rapid sales growth during this five-month period was achieved in the Netherlands, where sales grew by 669% compared to the last year, and in Uzbekistan where sale grew by 64%. Russia and Belarus have demonstrated 26% and 9% sales increase in the five months, respectably. Amongst the largest sales outlets decline has been marked in Ukraine (-1%), Kazakhstan (-4%), Germany (-3%) and Lithuania (-34%).

“Olainfarm Group has picked up its development speed in May, showing positive dynamics in almost all major sales outlets. In addition, the sales volume has grown for both of the biggest subsidiaries SIA “Latvijas aptieka” and SIA “Silvanols”. In order for to further its development to the next level, it is essential for the Company to keep increasing the sales volumes, as well as broadening the geography of trade ,” emphasizes Lauris Macijevskis, Chairman of the Board at JSC Olainfarm.

Unconsolidated sales – May and 5 months

According to preliminary unconsolidated numbers, sales of JSC Olainfarm in May reached 7.8 million euros, which represents an increase by 25% compared to May  2018. Result was positively influenced by the sales increase in Russia (by 31%), Ukraine (by 22%), Uzbekistan (by 63%), Germany (by 57%), Kazakhstan (by 43%) and Latvia (by 11%). Sales shrunk in Belarus (by 8%).

Unconsolidated sales results for five months 2019 show that sales of JSC Olainfarm reached 44.3 million euros, which represents an increase by 16% compared to first 5 month 2018. During the reporting period, sales have increased in all major sales markets of Olainfarm, except Ukraine, where sales shrunk by 5%, Kazakhstan (decrease by 23%) and Lithuania (decrease by 29%). In this 5-months period, sales of Olainfarm to Russia grew by 30%, the Netherlands grew by 1034%, sales to Uzbekistan increased by 64%.

Results of subsidiaries – May and five months of 2019

Sales of pharmacy chain of SIA Latvijas Aptieka in May 2019 reached  2.1 million euros, which represents 9% increase compared to May 2018. During this period 68 pharmacies operated. Sales of green pharmacy company SIA Silvanols in May reached 0.4 million euros, representing increase by 3% vs. May 2018. Combined sales of Tonus Elast and Elast Medical in May 2019 were 0.8 million euros, which is decrease by 8% compared to the same period last year. Medical centers of Olainmed and Diamed made sales worth 0.28 million euros, while Belarus daughter company NPK Biotest made sales of 0.2 million euros. 

During five month of 2019, SIA Latvijas Aptieka sales amounted to 10.9 million euros, demonstrating 11% increase over the same period last year, sales of SIA Silvanols reached 2.5 million euros remaining close to figures of the last year. Combined sales of Tonus Elast and Elast Medical was 3.7 million euros that is approximately the same as the last year. Medical centers Diamed and Olainmed revenues were 1.3 million euros during five months this year and Belarus’ company NPK Biotest sales were worth 1.2 million EUR, improving last year’s result.

According to the budget of JSC Olainfarm, unconsolidated sales of the company in 2019 are planned to reach 99 million euros, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first 5 months 2019, 45% of annual target for unconsolidated sales and 43% of the annual target for consolidated sales are reached.

Additional information please find in company announcement at Nasdaq Baltic.

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.

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Olainfarm Group sales in May increase by 20%

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

on May 31, 2019

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
31.03.201931.12.2018
EUR ‘000EUR ‘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 2019Q1 2018
EUR ‘000EUR ‘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
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Olainfarm Group’s revenue in the first quarter reaches 34.7 million EUR; net profit tops 8.3 million EUR

Olainfarm Group sales in April increase by 14%

on May 15, 2019

Consolidated sales – April and 4 months

Preliminary consolidated results of JSC Olainfarm for April 2019, show that the Group has made sales worth 12.6 million euros, which represents an increase by 14% compared to April 2018. The same increase demonstrate preliminary results for first four months of 2019, compared to the four months period of 2018, reaching 47.3 million euros. Products of Olainfarm Group during this period were sold in 50 markets worldwide.

According to consolidated sales numbers for April, four major sales markets of the Group remain the same: Russia, with 77% sales increase, Latvia, where the sales jumped by 10%, Ukraine with the sales decrease of 38%, and Belarus with the 17% decrease. Amongst the ten largest sales markets, the sales have been shrinking also in Lithuania (by 27%). All other major outlets demonstrated sales growth in April, with substantial deliveries to the Netherlands, Kazakhstan and Germany.

In the four months of 2019, the main sales markets of Olainfarm Group remained the same: Russia (30% share), Latvia (27% share), Belarus (14% share) and Ukraine (9% share). Other major sales markets included the Netherlands, Uzbekistan, Kazakhstan, Germany, Tajikistan and Lithuania. The most rapid sales growth during this four-month period was achieved in the Netherlands, where sales grew by 702% compared to the last year, and in Uzbekistan where sale grew by 64%. Russia and Belarus have demonstrated 27% and 12% sales increase in the four months, respectably. Amongst the largest sales outlets decline has been marked in Ukraine (-5%), Kazakhstan (-14%), Germany (-19%) and Lithuania (-34%).

“JSC Olainfarm four-month sales show good results, confirming the stable growth of the company. The key to the company’s success is effective manufacturing processes, knowledgeable and professional employees, as well as stable market outlets and cooperation partners. Currently, one of the most important tasks is the further development of company’s activities. We are working on a new medium-term strategy for the Group for 3-5 years, which will help to continue the successful growth of the company. This will allow us to maintain stable positions, both in existing markets and to acquire new ones,” emphasizes Lauris Macijevskis, Chairman of the Board at JSC Olainfarm.

April 2019, consolidated sales Sales, thsnd. EURShare in total salesChanges to April 2018
Russia4 91039%77%
Latvia3 12725%10%
Ukraine1 1859%-38%
Belarus1 1149%-17%
The Netherlands5855%5818%
Kazakhstan3233%33%
Germany1922%16%
Uzbekistan1731%
Armenia1401%3672%
Lithuania1281%-27%
Other7286%-22%
Total12 605100%14%

 

 

4 months 2019, consolidated sales Sales, thsnd. EURShare in total salesChanges to 4 months 2019
Russia13 98530%27%
Latvia12 91327%11%
Belarus6 61814%12%
Ukraine4 0379%-5%
The Netherlands1 3633%702%
Uzbekistan1 1242%64%
Kazakhstan9372%-14%
Germany7292%-12%
Tajikistan5211%17%
Lithuania5121%-32%
Other4 55610%10%

Total

47 294100%14%

Unconsolidated sales – April and 4 months

According to preliminary unconsolidated numbers, sales of JSC Olainfarm in April reached 10.0 million euros, which represents an increase by 15% compared to April 2018. Result was positively influenced by the sales increase in Russia (by 102%), the Netherlands (by 6047%), Kirgizstan (by 611%) and India (by 8559%). Sales shrunk in Ukraine (by 40%) and in Belarus (by 24%).

Unconsolidated sales results for four months 2019 show that sales of JSC Olainfarm reached 36.6 million euros, which represents and increase by 14% compared to first 4 month 2018. During the reporting period, sales have increased in all major sales markets of Olainfarm, except Ukraine, where sales shrunk by 11%, Uzbekistan (decrease by 23%) and Tajikistan (decrease by 34%). In this 4-months period, sales of Olainfarm to the Netherlands grew by 64%, but sales to Kazakhstan and Lithuania accordingly by 13% and 55%.

April 2019, unconsolidated sales Sales, thsnd. EURShare in total salesChanges to April 2018
Russia4 69947%102%
Latvia1 40214%4%
Ukraine1 14911%-40%
Belarus8609%-24%
The Netherlands5856%6047%
Germany1912%16%
Uzbekistan1732%
Kazakhstan1712%-29%
India1221%8559%
Kyrgyzstan1161%-30%
Other5275%-32%
Total9 996100%15%

 

Four months 2019 unconsolidated sales Sales, thsnd. EURShare in total salesChanges to four months 2018
Russia12 59134%30%
Latvia5 91916%6%
Belarus5 46615%9%
Ukraine3 74310%-11%
The Netherlands1 5823%64%
Uzbekistan1 1242%-23%
Kazakhstan5981%13%
Tajikistan5031%-24%
Lithuania4501%55%
Turkmenistan35412%1263%
Other4 23312%-5%
Total36 563100%14%

Results of Daughter companies – April and four months of 2019

Sales of pharmacy chain of SIA Latvijas Aptieka in April 2019 was close to 2.2 million euros, which represents 11% increase compared to April 2018. During this period 68 pharmacies operated. Sales of SIA Silvanols in April reached 0.47 million euros, representing increase by 3% vs. the April 2018. Combined sales of Tonus Elast and Elast Medical in April 2019 were 0.8 million euros, which is increase by 2%. Medical centers of Olainmed and Diamed made sales worth 0.28 million euros, while Belarus daughter company NPK Biotest made sales of 0.25 million euros.

During four month of 2019, SIA Latvijas Aptieka sales amounted to 8.7 million euros, demonstrating 12% increase over the same period last year, sales of SIA Silvanols reached 2.1 million euros (an increase by 6%). Combined sales of Tonus Elast and Elast Medical also grew by 6% to 2.9 million euros. Medical centers and NPK Biotest both sold services and products worth over 1.0 million EUR during four months 2019.

April 2019 4 months 2019
Sales markets of Olainfarm2542
Sales markets of the Group3550
Number of pharmacies68
Sales of Latvijas Aptieka, thsnd.2 1568 762
Sales of Medical centers, thsnd.2831 022
Sales of NPK Biotest, thsnd.2541 045
Sales of Tonus Elast and Elast Medical, thsnd.7652 933
Sales of Silvanols, thsnd.4742 115

According to the budget of JSC Olainfarm, unconsolidated sales of the company in 2019 are planned to reach 99 million euros, while consolidated sales are expected at 133 million euros. According to these preliminary sales figures, in the first 4 months 2019, 37% of annual target for unconsolidated sales and 35% of annual target for consolidated sales are 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.

 

Information prepared by:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

 

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Olainfarm Group sales in April increase by 14%

Organizing a Health Industry Conference in collaboration with Dienas Bizness

on May 8, 2019

In order to position Olainfarm as the industry leader in issues related to pharmacy and health care,  JSC Olainfarm, in cooperation with the publishing house Dienas Bizness, organizes a health care conference “When future is now – current trends in medical care and pharmacy”.

The focus of the conference will be on three areas: public psychiatric care; personalized medicine and innovative solutions; cooperation opportunities between business start-ups and pharmaceutical business.

Event Time and Place: June 6 | Riga, Balasta dambis 15, Swedbank central building, 2nd floor, hall “Lielupe”.

The target audience of the Conference  – health, medical, pharmaceutical and research industry, health policymakers, industry journalists, new business leaders, etc. interested in health issues.

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Organizing a Health Industry Conference in collaboration with Dienas Bizness

Olainfarm’s Group revenues in 2018 exceeded 124 million euros

on May 2, 2019

Audited consolidated revenues of JSC Olainfarm for 2018 exceeded 124 million euros. This represents an increase by 2% compared to sales of 2017 and is the new record in the company’s history. The profit before tax of Olainfarm Group last year reached 11.4 million euros, which is 21% more than a year before.

Olainfarm Group sold its products in 54 countries. Besides smaller (by 10% or by 4.0 million euros) sales to Russia, all the other main markets demonstrated sales increases – Belarus (+52%), Tajikistan (+32%), Latvia (+23%), making the home market the second largest in terms of turnover after Russia. Major sales markets of the Group in 2018 were Russia, Latvia, Belarus and Ukraine reaching 79% of total sales.

During the previous year, Olainfarm enhanced the product portfolios in already existing export markets as well as started the sale of chlorobutanol in China, and started export to new markets such as Portugal, Slovakia, Jordan, Bangladesh. Meldonium and Memantine became one of the Top 10 selling products, while shares of the most revenue generating products Noofen and Neiromidin were balanced.

Last year Olainfarm Group continued investments in intangible assets and property, plant and equipment. In total, almost 8 million euros were invested, which is by 1.1 million or 16% more than a year ago.

In 2018 Olainfarm paid close to 3 million euros or 0.21 euros per share in dividends from the net profit of 2017. Basing upon the results reflected in this annual report and upon the plans of the Group for 2019, the Management Board recommended the shareholders to decide on paying 1.4 million euros in dividends from earnings of 2018 or 0.10 euros per share.

During 2018, new registration processes for the Parent Company’s products were completed in Azerbaijan and Mongolia. Registration of two medicines produced by NPK Biotest in Belarus has also been completed. Registration processes are still ongoing in Turkey, Zimbabwe and Zambia.

The Parent Company by the end of 2018 completed four EU co-financed research projects in cooperation with Competence Centre of Pharmaceutical, Biomedical and Medical Technology: Drug safety and toxicokinetic study; Research of natural substances for development of new cosmetic product line; Development of a new anti-tuberculosis final dosage form; Development of new manufacturing technology for the racemic derivative of the Hinuclidine.

The Parent Company also continued implementation of EU co-financed project Experimental Technology Implementation for New Products Manufacturing in JSC Olainfarm with planned project completion in August, 2019.

Although the overall number of sales markets is increasing and sales diversity is improving, achieving even greater variety in sales geography, diversification of the markets remains one of the main challenges for the Group. One of priorities in 2019 and further years is to conduct additional clinical and preclinical research of top products not only to secure the presence of existing products in existing markets, but also to make accessibility to other markets easies in future. Since this research program is rather sizeable, it will remain among company’s priorities for the next two years.

More: https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=887598&messageId=1117210

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Olainfarm’s Group revenues in 2018 exceeded 124 million euros

Olainfarm signs a new 3 million euro worth supply contract with the World Health Organization

on April 29, 2019

JSC Olainfarm has won the International World Health Organization (WHO) tender for the supply of anti-tuberculosis agent PASS sodium in 2019 – 2020. Based on the results of the tender, WHO and Latvian pharmaceutical company Olainfarm has signed a contract for the delivery of this medicine for more than 3 million euros. The first delivery of PASS sodium will take place already in April.  “We are proud to be a cooperation partner with WHO for almost 10 years, proving the high quality of Olainfarm’s medicines. The safety of raw materials, high evaluation of the product quality, compliance with delivery terms and long-term positive cooperation experience are the criteria that has allowed Olainfarm to re-win the WHO tender for delivery of this anti-tuberculosis drug also in 2019 and 2020,” underscores Lauris Macijevskis, the Chairman of the Management Board of JSC Olainfarm.

The PASS sodium salt was one of the 15 most sold Olainfarm products in 2018. Besides the WHO, Olainfarm supplies Pass sodium salt also to specialized clinical centers in the Baltic States, international NGO Doctors without borders (Médecins Sans Frontières), and export to Moldova.The PASS sodium is one of the best-known anti-tuberculosis agents in the world, and has been widely used by WHO to treat tuberculosis in developing countries in Asia and Africa. Olainfarm has been producing this medicine since 2001, but since 2011 the company has qualified as a WHO partner in anti-tuberculosis program, regularly participating in WHO procurement tenders.

The first effective tuberculosis medicines were developed in the 1940s. In Western Europe and North America, cases of tuberculosis are very rare, but a large part of the world still has to deal with it every day. As evident from the WHO Global Tuberculosis Report 2018, there were about 10 million tuberculosis patients worldwide in 2017. 30 countries with the highest prevalence of tuberculosis accounted for 87% of all cases. Thanks to massive anti-tuberculosis initiatives implemented in the long term, the number of new diagnoses worldwide has been shrinking by an average of 2% annually; the 2020 target is to reduce the number of new cases by 4-5% every year.

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 60 countries worldwide, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

 

Information prepared by:

Dana Hasana
Head of Communication
JSC Olainfarm
dhasana@olainfarm.lv
+371 26355895

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Olainfarm signs a new 3 million euro worth supply contract with the World Health Organization

Olainfarm appoints new contact for investor relations – Jānis Dubrovskis

on April 16, 2019

JSC Olainfarm hereby informs that from now on, Investor Relations Advisor Jānis Dubrovskis will be the core contact person for shareholders and investors.

The contact details of Jānis Dubrovskis are following: contact e-mail: Janis.dubrovskis@olainfarm.com; contact phone: +371 29178878.

Jānis Dubrovskis has broad experience in capital markets and corporate finance fields. Since 2003 Mr. Jānis Dubrovskis held various positions at banks in Latvia including Member of the Board at AS BlueOrange Bank from 2017 to 2019.

JSC Olainfarm will continue to introduce investors to the consolidated and non-consolidated performance of the company by publishing information quarterly. The company will continue previous webinar practices, dates will be reported separately. At any other time investors are welcomed to have a dialog personally by contacting J. Dubrovskis.

 

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.

 

Information prepared by:

Dana Hasana, Head of PR
JSC Olainfarm
dana.hasana@olainfarm.com
+371 26355895

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Olainfarm appoints new contact for investor relations – Jānis Dubrovskis

Olainfarm Group sales increase by 14% in Q1 2019

on April 16, 2019

Consolidated sales – March and 3 months
Preliminary consolidated results of JSC Olainfarm for March 2019, show that the Group has made sales worth 10.8 million euros, which represents an increase by 3% compared to March of 2018. Preliminary results for first three months of Y2019 demonstrate 14% sales increase, compared to the Q1 of 2018, reaching 34.7 million euros. Products of Olainfarm Group during this period were sold in 47 markets worldwide.

According to consolidated sales numbers for March, three major sales markets were Latvia, with 4% sales increase, Russia, where the sales dropped by 23%, and Belarus with the sales increase of 26%. Sales volumes in Russia declined because the earlier scheduled volumes for March were ordered at the beginning of the year. Amongst the 10 largest sales markets, the sales have been shrinking also in Ukraine (by 24%).  All other major outlets demonstrated sales growth in March, with substantial deliveries to Uzbekistan, the Netherlands and Tajikistan.

In the 1Q of 2019, the main sales markets of Olainfarm Group remained the same: Latvia (28% share), Russia, (26% share), Belarus (16% share) and Ukraine (8% share). Other major sales markets included Uzbekistan, The Netherlands, Kazakhstan, Germany, Tajikistan and Lithuania. The most rapid sales growth during this three-month period was achieved in the Netherlands, where sales grew by 386% compared to last year, and in Uzbekistan where sale grew by 39%. Russia and Latvia have demonstrated 11% sales increase in Q1. Amongst the largest sales outlets decline has been marked in Kazakhstan (-27%), Germany (-19%) and Lithuania (-34%).

 March 2019, consolidated sales  

Sales, thsnd. EUR

Share in total sales

Changes to March 2018

Latvia

3 233

30%

4%

Russia

2 863

26%

-23%

Belarus

1 562

14%

26%

Uzbekistan

584

5%

100%

The Netherlands

424

4%

1015%

Tajikistan

413

4%

308%

Kazakhstan

381

4%

30%

Kirgizstan

242

2%

785%

Ukraine

172

2%

-24%

Mongolia

153

1%

1292%

Other

802

7%

-46%

Total

10 830

100%

3%

 

Q1 2019, consolidated sales

Sales, thsnd. EUR

Share in total sales

Changes to Q1 of 2018

Latvia

9 786

28%

11%

Russia

9 075

26%

11%

Belarus

5 504

16%

20%

Ukraine

2 852

8%

21%

Uzbekistan

951

3%

39%

The Netherlands

777

2%

386%

Kazakhstan

614

2%

-27%

Germany

537

2%

-19%

Tajikistan

413

1%

34%

Lithuania

384

1%

-34%

Other

3 796

11%

18%

Kopā

34 689

100%

14%

 

Unconsolidated sales – March and 3 months
According to preliminary unconsolidated numbers, sales of JSC Olainfarm in March reached 7.9 million euros, which represents an increase by 1% compared to March of 2018.  Result was positively influenced by the sales increase in the Netherlands (by 1038%), Kirgizstan (by 611%) and Tajikistan (by 290%). Sales shrunk in Russia (by 28%) and in Ukraine (by 17%).

Unconsolidated sales results for Q1 2019 show that sales of JSC Olainfarm reached 26,5 million euros, which represents and increase by 13% compared to first 3 month of 2018. During the reporting period, sales have increased in all major sales markets of Olainfarm, except Germany, where sales shrunk by 19%, Kazakhstan (decrease by 21%) and Lithuania (decrease by 37%). In this 3-months period, sales of Olainfarm to the Netherlands grew by 388%, but sales to Uzbekistan and Tajikistan accordingly by 39% and 28%.

March 2019, unconsolidated sales

Sales, thsnd. EUR

Share in total sales

Changes to March 2018

Latvia

2 439

31%

-28%

Russia

1 448

18%

1%

Belarus

1 253

16%

29%

Uzbekistan

584

7%

100%

The Netherlands

424

5%

1038%

Tajikistan

395

5%

290%

Kazakhstan

268

3%

264%

Kirgizstan

194

2%

611%

Ukraine

156

2%

-17%

Mongolia

153

2%

Other

549

7%

-57%

Total

7 864

100%

1%

 

Q1 2019. unconsolidated sales

Sales, thsnd. EUR

Share in total sales

Changes to Q1 2018

Russia

8 017

30%

9%

Belarus

4 606

17%

18%

Latvia

4 492

17%

1%

Ukraine

2 835

11%

22%

Uzbekistan

951

4%

39%

The Netherlands

777

3%

388%

Germany

533

2%

-19%

Kazakhstan

427

2%

-21%

Tajikistan

395

1%

28%

Lithuania

351

1%

-37%

Other

3 118

12%

20%

Total

26 502

100%

13%

 

Results of Daughter companies – March and three months of 2019
Sales of pharmacy chain of SIA Latvijas aptieka in March 2019 exceeded 2.1 million euros, which represents 2% decrease compared to March of 2018.  Sales of SIA Silvanols in March reached 0.58 million euros, representing increase by 7% vs. the March of 2018. Combined sales of Tonus Elast and Elast Medical in March 2019 were 0.9 million euros, which is increase by 8%. Medical centers of Olainmed and Diamed made sales worth 0.27 million euros, while Belarus daughter company NPK Biotest made sales of 0.24 million euros.

In Q1 of 2019, SIA Latvijas aptieka sales were 6.6 million euros, demonstrating 12% increase, sales of SIA Silvanols reached 1.6 million euros (an increase by 7%). Combined sales of Tonus Elast and Elast Medical also grew by 7% to 2.17 million euros. Medical centers sold services worth 0.74 million EUR, while NPK Biotest’s sales reached 0.79 million.

March 2019

3 months of 2019

Sales markets of Olainfarm

29

39

Sales markets of the Group

34

47

Number of pharmacies

71

Sales of Latvijas aptieka, thsnd.

2 137

6 606

Sales of Medical centers, thsnd.

268

738

Sales of NPK Biotest, thsnd.

244

792

Sales of Tonus Elast and Elast Medical, thsnd.

935

2 168

Sales of Silvanols, thsnd.

576

1 641

According to the budget of JSC Olainfarm, unconsolidated sales of the company in 2019 are planned to reach 99 million euros, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first 3 months of 2019, 27% of annual target for unconsolidated sales and 26 % of annual target for consolidated sales are 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.

 

Information prepared by:

Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

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Olainfarm Group sales increase by 14% in Q1 2019

Information on changes in the Management Boards of the subsidiaries of JSC Olainfarm and in authorization rights

on April 12, 2019

In addition to the previously published information on changes in the Management Board of JSC Olainfarm and of the recall of O. Grigorjevs, I. Krūkle, M. Raizbergs and V. Krušinskis from the position of a member of the Management Board, JSC Olainfarm announces following:

  • on April 9, 2019 Oļegs Grigorjevs and Žanete Eihmane have been recalled from the position of the Management Board members of JSC Olainfarm subsidiary company SIA Latvijas aptieka, reg.nr 40003094510. Consequently, they are not entitled to represent SIA Latvijas Aptieka;
  • on April 9, 2019 Ingus Balandins has been recalled from the position of the Management Board member of JSC Olainfarm subsidiary company SIA Silvanols, nr. 40003233170. Consequently, he is not entitled to represent SIA Silvanols.

JSC Olainfarm informs that it has withdrawn all authorizations, issued by SIA Latvijas aptieka until April 8, 2019, and all authorizations, issued by SIA Silvanols until April 11, 2019.

Referring to the above, JSC Olainfarm draws attention to the possible facts of substitution and invites to verify the validity of any representation rights granted through the authorizations, as well as thoroughly review any document and / or action taken by persons mentioned above during their term of office.

JSC Olainfarm indicates that any documents, transactions and / or actions carried out without a valid authorization/representation rights will not bound the relevant company (SIA Silvanols and SIA Latvijas aptieka) and it will not be liable for any loss that could be caused by these actions to a third party. JSC Olainfarm invites to check the rights of representation by contacting the Management Board of the respective companies.

 

Information prepared by:

Ludmila Baškirova
Head of Legal, JSC Olainfarm
lbaskirova@olainfarm.lv
Ph.+371 29949105

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Information on changes in the Management Boards of the subsidiaries of JSC Olainfarm and in authorization rights