Uncategorized

Announcement About Convening of the Extraordinary General Meeting of Shareholders of Joint Stock Company “Olainfarm”

on August 15, 2019

Management Board of the Joint Stock Company Olainfarm (JSC Olainfarm), unitary registration number. 40003007246, registered  address: Rupnicu iela 5, Olaine, LV-2114, announces that on August 2nd, 2019, request to convene an extraordinary general meeting of shareholders has been received from shareholder limited liability company “OLMAFARM”, representing 42,56% of the share capital of Joint Stock Company Olainfarm. Management Board of Joint Stock Copany Olainfarm based on the shareholder’s request in accordance with the article 270 of the Commercial law hereby convenes and announces that Extraordinary General Meeting of Shareholders of Joint Stock Company Olainfarm will be held on November 1st, 2019, at 11:00 at the  premises of JSC Olainfarm in Olaine, Rupnicu iela 5.

Agenda:

  1. Recall of the Council and Election of the new Council;
  2. Recall of the Auditing committee and election of the new Auditing committee.

Draft decisions has not been added by the shareholder limited liability company “OLMAFARM” to request on convene an extraordinary general meeting of shareholders.

Registration of the shareholders will take place on the day of the meeting, i.e. November 1st, 2019,  – from  10:00  until 10:45 on the venue.

The total number of shares and the total number of the voting shares of JSC „Olainfarm” is 14 085 078.

Date of the record for participation of the shareholders in the Extraordinary General Meeting of shareholders  of JSC „Olainfarm” is October 24th, 2019. Only those who are the shareholders at the date of record have the right to participate in the Extraordinary General Meeting of shareholders on November 1st, 2019, with the  number of shares held by them at the date of record.

Shareholders may participate in the General Meeting of shareholders either in person or  with a legal representative or represented through a proxy:
– When registering the shareholders must present either the passport or other  identification document;
– When registering the representatives or attorneys of the shareholders must present the passport or  other identification document, submit a written power of attorney by the represented shareholder (the  form of the power of attorney is available at JSC “Olainfarm” website http://www.olainfarm.com, website of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv; and website   of JSC  „NASDAQ Riga” http://www.nasdaqbaltic.com) or the legal representative has to present a document confirming the authority.

Shareholders have the following rights:
– shareholders that represent at least 1/20 of the capital of the company have the right within 7 days after the announcement is published to request the Management Board of JSC „Olainfarm”  to include additional items in the agenda. Shareholders that request inclusion of additional items in  the agenda of the Extraordinary General Meeting of shareholders must submit to the Management Board of JSC  „Olainfarm” draft decisions about the issues to be included in the agenda upon their request or  explanations about the item, if no decision is planned;
– within 7 days after the publishing of this announcement, submit draft decisions about the items of agenda.  Should all submitted draft decisions be reviewed and declined, shareholders may  submit their proposed draft decisions during the Extraordinary General Meeting of Shareholders itself;
– should the shareholder submit an inquiry at least 7 days before the Extraordinary General  Meeting of shareholders, the Management Board shall at least 3 days before the Extraordinary General Meeting  of shareholders provide the requested information about the items included in the agenda.

Shareholders may see the draft resolutions of the Extraordinary general Meeting of Shareholders from October 17th, 2019, on the web  page of JSC „Olainfarm”  http://www.olainfarm.com, web-page of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv and the web page of JSC „NASDAQ Riga” http://www.nasdaqbaltic.com , but on the day of the Extraordinary General Meeting – at the venue.

The  form of the power of attorney is available at web  page of JSC „Olainfarm”  http://www.olainfarm.com, web-page of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv and the web page of JSC „NASDAQ Riga” http://www.nasdaqbaltic.com.

In Olaine, on August 15th,2019

Management Board of Joint Stock Company “Olainfarm”

Additional information please find in company announcement at Nasdaq Baltic.

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

read more
Announcement About Convening of the Extraordinary General Meeting of Shareholders of Joint Stock Company “Olainfarm”

JSC Olainfarm will add senior level management with international experience in pharmacy. Lauris Macijevskis continues to work on the Board of JSC Olainfarm

on August 14, 2019

In order to strengthen the management team of JSC Olainfarm, the Supervisory Council  has decided to appoint a new candidate with international experience in pharmacy for the position of the Chairman of the Board of JSC Olainfarm. The change of the Chairman of the Board is a planned strategic decision in the direction of development of JSC Olainfarm in order to facilitate the acquisition of new markets and increase the international competitiveness of the company.

“Thanks to the management of the current Chairman of the Board, Lauris Macijevskis, the company has embarked on a major change management process that will ensure the company’s  long-term development. We highly value L. Macijevskis contribution and experience, which is why we will suggest he continues working for the company. Currently, in order for the company to achieve its goal to become a global player, it is necessary to continue strengthening the Board with internationally experienced pharmaceutical professionals with networks in the EU, this would open up further opportunities for strengthening the operation of  Olainfarm in existing markets as well as rapidly expanding its outlets in Europe and worldwide,” explains Gundars Bērziņš, Chairman of the Supervisory Council of JSC Olainfarm.

In order to facilitate the selection of candidates, Amrop Latvia, a top-level recruitment company with experience in the field, has been engaged.

“My task was to initiate a major change in the company – to create a new internal culture with a horizontal management model and a balanced decision-making structure to take the development of JSC Olainfarm to the next level. The foundation for the change management process has been established and now it is time to act according to the plan – bring in an experienced pharmaceutical professional with an international perspective, to take over the position of the Chairman of the Board. I will continue my work on the Board of JSC Olainfarm in close cooperation with the management team,” emphasizes Lauris Macijevskis, Chairman of the Board of JSC Olainfarm.

Recently, a new Director of the Finance Department, Jana Gridasova, has also joined Olainfarm’s senior management team. With more than 15 years of experience in the financial sector, J. Gridasova manages and organizes budget planning, financial resource flow, makes necessary changes in financial management processes, to increase efficiency and develop necessary competencies within the company.

Lauris Macijevskis will continue to work as the Chairman of the Board until a new manager is selected through tendering. The international tendering process for the position of Olainfarm Chairman of the Board is planned to be completed by the end of October. After appointing the new Chairman of the Board, Lauris Macijevskis will continue his work on the Board of JSC Olainfarm.

As reported before JSC Olainfarm preliminary consolidated results for July 2019 indicate that revenues increased by 14% compared to the same month last year and reached 9.5 million euro. At the same time consolidated results for the first seven months of 2019 show that revenues reached 75.9 million euro which is an increase by 8%, compared to the seven-month period of 2018. Positive tendencies are observed in all the main markets – Latvia, Russia, Belarus and Ukraine. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

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

read more
JSC Olainfarm will add senior level management with international experience in pharmacy. Lauris Macijevskis continues to work on the Board of JSC Olainfarm

In July revenues increased by 14%, significant growth in all the main markets

on August 12, 2019

JSC Olainfarm preliminary consolidated results for July 2019 indicate that revenues increased by 14% compared to the same month last year and reached 9.5 million euro. At the same time consolidated results for the first seven months of 2019 show that revenues reached 75.9 million euro which is an increase by 8%, compared to the seven-month period of 2018. Positive tendencies are observed in all the main markets – Latvia, Russia, Belarus and Ukraine. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

Consolidated sales in July show that historical major markets (Latvia, Russia, Ukraine and Belarus) had significant increase over July last year, where revenues in Latvia rose by 27%, in Russia by 9%, in Ukraine and Belarus by 26% and 42%, respectively. Sale of products also increased in Italy (by 1153%), in Turkmenistan (by 75%), in Moldova (by 46%) and in the Netherlands (by 62%). Out of the ten largest markets revenues declined only in Kazakhstan (by 42%) and in Germany (by 17%).

In the first seven months of 2019, the main sales markets of Olainfarm Group continued to contribute 78% of the total revenue – Latvia (29% share), Russia (27% share), Belarus (13% share) and Ukraine (9% share). Other major sales markets included Kazakhstan, Uzbekistan, the Netherlands, Germany, Tajikistan and Lithuania. The most rapid sales growth during this seven-month period was achieved in the Netherlands, where sales grew by 481% compared to the last year, and in Tajikistan where sales grew by 29%. Sales in Latvia improved by 13%, in Russia by 3%, in Belarus by 10% but in Uzbekistan by 21%. Amongst the largest sales outlets a decline was marked in Ukraine (-2%), in Kazakhstan (-2%), Germany (-7%) and Lithuania (-28%).

“The most recent sales data for July indicates significant increase, including in such target markets as Latvia and Russia. It shows wider picture about situation in the company and confirms that chosen development path  is successful. Olainfarm’s management team carefully analyses situation in strategic markets and we can confirm that short-term revenue drop in June was related to practical short-term factors on our partners’ side, and we continue to head according to the plan with confidence,” emphasizes Lauris Macijevskis, Chairman of the Board of JSC Olainfarm.

July 2019, consolidated sales    Sales, thous. EUR        Share in total sales      Changes to July 2018
Latvia3 17033%27%
Russia2 70728%9%
Ukraine1 00811%26%
Belarus8939%42%
Kazakhstan2092%-42%
Italy1331%1153%
Turkmenistan1221%75%
Germany1191%-17%
Moldova1181%46%
The Netherlands1161%62%
Other93710%-24%
Total9 533100%14%

 

7 months 2019, consolidated sales   Sales, thous. EUR     Share in total sales     Changes to 7 months 2018
Latvia22 23029%13%
Russia20 44827%3%
Belarus9 81813%10%
Ukraine6 7609%-2%
Kazakhstan1 8452%-2%
Uzbekistan1 8352%21%
The Netherlands1 6662%481%
Germany1 1351%-7%
Tajikistan1 0581%29%
Lithuania8201%-28%
Other8 24511%4%
Total75 859100%8%

Unconsolidated sales – July and 7 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 7 million euros in July, which represents an increase by 16% compared to July, 2018. Sale of products improved in Russia (+21%), Latvia (+18%), Ukraine (+25%), Belarus (+71%), Italy (+1153%), Turkmenistan (+75%) and in the Netherlands (+62%). The decline was observed Germany by 19% and in Poland by 31%. In July India was among the major markets.

The unconsolidated sales results for the first seven months of 2019 show that JSC Olainfarm sales reached 57.4 million euros, which represents an increase by 7% compared to the first 7 months of 2018. During this reporting period, sales have increased in seven out of the ten major markets of Olainfarm – Russia (+6%), Latvia (+2%), Belarus (+9%), Uzbekistan (+21%), the Netherlands (+483%), Tajikistan (+252%) and in Italy (+28%). Revenues declined by 1% in Ukraine, by 7% in Germany and by 23% in Kazakhstan.

July 2019, unconsolidated sales  Sales, thous. EUR    Share in total sales      Changes to July 2018
Russia2 52236%21%
Latvia1 41620%18%
Ukraine97814%25%
Belarus84712%71%
Italy1332%1153%
Turkmenistan1222%75%
Germany1162%-19%
The Netherlands1162%62%
India1092%N/A
Poland1051%-31%
Other5658%-46%
Total7 029100%16%

 

Seven months 2019 unconsolidated sales   Sales, thous. EUR   Share in total sales    Changes to seven months 2018
Russia18 56232%6%
Latvia10 00417%2%
Belarus8 15314%9%
Ukraine6 64512%-1%
Uzbekistan1 8353%21%
The Netherlands1 6663%483%
Germany1 1252%-7%
Tajikistan1 0052%252%
Kazakhstan9872%-23%
Italy7461%28%
Other6 71412%-8%
Total57 441100%7%

Results of subsidiaries – July and the first seven months of 2019

The pharmacy chain Ltd. Latvijas Aptieka sales reached 2.1 million euros in July 2019, which represents a 16% increase compared to July 2018. 68 pharmacies were operating during this period. Ltd. Silvanols sales reached 0.2 million euros in July 2019, representing a decline by 11% vs. July 2018. The combined sales of Tonus Elast and Elast Medical in July 2019 were 1.03 million euros, which is by 14% more than this time last year. Olainmed and Diamed Medical Center sales reached 0.27 million euros, while the Belarus subsidiary NPK Biotest reached 0.21 million euros in sales in July that is higher by 59% than in July last year.

During the first seven month period of 2019, Ltd. Latvijas Aptieka sales amounted to 15.0 million euros, demonstrating a 7% increase in comparison to the same time period last year, sales of Ltd. Silvanols reached 3.2 million euros which is 3% less than last year. The combined sales of Tonus Elast and Elast Medical during the seven months this year totaled 5.6 million euros which is an increase by 4%. Medical Centers Diamed and Olainmed revenues were 1.8 million euros during the first seven months of this year and the Belarus company NPK Biotest sales were worth 1.7 million euros, improving the result of the last year by 36%.

July 2019    7 months 2019
Sales markets of Olainfarm4647
Sales markets of the Group5354
Number of pharmacies68
Sales of Latvijas Aptieka, thous. EUR2 06015 028
Sales of Medical centers, thous. EUR2661 802
Sales of NPK Biotest, thous. EUR2111 726
Sales of Tonus Elast and Elast Medical, thous. EUR1 0255 564
Sales of Silvanols, thous. EUR2083 169

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 six months of 2019, 58% of annual target for unconsolidated sales and 57% 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
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

read more
In July revenues increased by 14%, significant growth in all the main markets

JSC Olainfarm Management Board will review OLMAFARM Ltd. request for an extraordinary shareholders’ meeting

on August 2, 2019

On 2 August, 2019 JSC Olainfarm has received a request from its largest shareholder OLMAFARM Ltd. to call for a shareholders’ meeting.

While fully respecting the rights of the largest shareholder of JSC Olainfarm to call for a shareholders’ meeting, we urge not to make any hasty conclusions and objectively assess the situation within the company, and to draw conclusions based on more than just two indicators, when looking at the entire positive development of the Group. The company is developing steadily – Olainfarm Group closed the first half of the year with a 7% turnover increase. We also encourage to wait for the July preliminary results.

JSC Olainfarm is operating successfully, according to the planned pace of development, which allows us to look at the future with optimism. In June, the annual general shareholders meeting approved the increase of the Group profit, proposed by the Board, from EUR 10 million to 12.7 million. Half way through the year we have reached 50% of the planned consolidated sales amount adding up to EUR 66.3 million. This is a positive forecasted result.

We encourage OLMAFARM Ltd. to examine the situation in its bank accounts, on Wednesday 31 July, dividend payment was made in accordance with the decision made during the shareholders’ meeting. The ability to pay dividends is a characteristic of a successfully operating company.

“A shareholder has the right to address the company and ask for a meeting with the Supervisory and Management Board in order to discuss issues of interest in person. OLMAFARM Ltd. has not shown such interest so far. We will definitely invite the management of OLMAFARM Ltd. to meet to discuss the issues of interest in person and to make sure that the company is developing steadily. I can confirm that JSC Olainfarm has received a request from OLMAFARM Ltd. regarding an extraordinary general shareholders’ meeting, which will be considered by the Board. The shareholders’ meeting will be convened in accordance with the law. The date for the Board meeting is not set as of now,” says Lauris Macijevskis, JSC Olainfarm Chairman of the Board.

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

read more
JSC Olainfarm Management Board will review OLMAFARM Ltd. request for an extraordinary shareholders’ meeting

Resignation of JSC Olainfarm member of the Management Board

on August 1, 2019

JSC Olainfarm has received the letter of resignation from Martins Tambaks whereby he steps down from his duties as a member of the Management Board as of 31 July 2019. JSC Olainfarm Management Board continues its work with six board members. M. Tambaks will continue to work at JSC Olainfarm.

“Martins Tambaks is an experienced colleague who has already devoted 6 years to Olainfarm. I understand and respect his decision to resign, and I am grateful to be able to continue our cooperation in achieving common goals,” emphasizes Lauris Macijevskis, Chairman of the Management Board of JSC Olainfarm.

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

read more
Resignation of JSC Olainfarm member of the Management Board

Olainfarm Group sales in the first half of the year increased by 7%

on July 15, 2019

Preliminary consolidated results for the first six months of 2019 demonstrate an increase by 7%, compared to the six-month period of 2018, reaching 66.3 million euros. Preliminary consolidated results of JSC Olainfarm for June 2019, show that the Company has made sales worth 8.6 million euros, which represents a decrease by 27% compared to June 2018 and were influenced by various on-off events. Products of Olainfarm Group during this period were sold in 52 markets, which are located in Europe, Asia, Africa, South and North America.

From the Top 10 markets the sales have been increasing in Kazakhstan (+55%), Tajikistan (+186%) and Mongolia (+113%). Egypt was amongst the largest markets in June, while also presenting the potential for developing a long-term cooperation. According to consolidated sales numbers for June, revenues were affected by seasonality and decreased in all major markets of the Group: Russia, with a 63% sales decline compared to June of last year, Ukraine with a sales drop by 39%, and Belarus with a 5% decrease. In Latvia the revenue was the same as the last year.

In the first six months of 2019, the main sales markets of Olainfarm Group contributed 78% of the total revenue– Latvia (29% share), Russia (27% 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 six-month period was achieved by the Netherlands, where sales grew by 620% compared to last year, and in Tajikistan where sales grew by 42%. Russia and Belarus have demonstrated 2% and 7% sales increases within six months, respectably. Amongst the largest sales outlets a decline was marked in Ukraine (-5%), Germany (-5%) and Lithuania (-33%).

“JSC Olainfarm key performance indicators are in line with the forecasted pace of development and allows us to look at our future with optimism. In the shareholders’ meeting this June, an overall profit forecast of EUR 12.7 million proposed by the Board was approved. Half way through the year we have reached 50% of the planned consolidated sales volume – EUR 66.3 million. This is a positive result as forecasted. In order to maintain the planned growth rate, we are going to review the efficiency of our sales activities and adjust accordingly to the goals set. In addition, our investment focus is shifting from equipment and buildings to investment in science and innovation. Consequently, the next steps are very clear. First of all, it is necessary to organise drug dossiers and conduct clinical trials for medications according to the market needs and trends. Secondly, we focus on increasing the efficiency and maximising the added value of the subsidiaries within the Group. And thirdly, it is necessary to evolve the direction of new chemical products, because in the pharmaceutical business developing a new product is not only expensive but also time consuming. Success in expanding this direction will be the basis of a new growth stage,” emphasises Lauris Macijevskis, Chairman of the Board of JSC Olainfarm.

June 2019, consolidated salesSales, thous. EURShare in total salesChanges to June 2018
Latvia2 80232%0%
Russia1 77721%-63%
Belarus1 17014%-5%
Kazakhstan4305%55%
Ukraine4085%-39%
Italy3464%-6%
Uzbekistan2423%-32%
Tajikistan2142%186%
Mongolia1742%113%
Egypt1492%N/A
Other92411%-19%
Total8 637100%-27%

 

6 months 2019, consolidated salesSales, thous. EURShare in total salesChanges to 6 months 2018
Latvia19 06029%11%
Russia17 74127%2%
Belarus8 92513%7%
Ukraine5 7529%-5%
Uzbekistan1 7403%37%
Kazakhstan1 6362%7%
The Netherlands1 5502%620%
Germany1 0162%-5%
Tajikistan9881%42%
Lithuania7191%-33%
Other7 20011%3%
Total66 326100%7%

 

Unconsolidated sales – June and 6 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 6.1 million euros in June, which represents a decline by 33% compared to June, 2018. The decline in Russia increased by 64%, Ukraine by 39%, Uzbekistan by 32%. Growth was observed in markets such as Tajikistan (+186%), Kazakhstan (+122%) and Mongolia (+113%). Out of the main markets sales in Latvia shrank by 8% and in Belarus by 5%.

The unconsolidated sales results for the first six months of 2019 show that JSC Olainfarm sales reached 50,4 million euros, which represents an increase by 5% compared to the first 6 months of 2018. During this reporting period, sales have increased in six out of the ten major markets of Olainfarm – Russia (+4%), Latvia (+0.2%), Belarus (+4%), Uzbekistan (+37%), the Netherlands (+623%) and in Tajikistan (+40%). Revenues declined by 5% in Ukraine and Germany, by 3% in Kazakhstan and by 37% in Lithuania.

June 2019, unconsolidated salesSales, thous. EURShare in total salesChanges to June 2018
Russia1 55125%-64%
Latvia1 18419%-8%
Belarus96016%-5%
Ukraine4087%-39%
Italy3466%-6%
Uzbekistan2424%-32%
Tajikistan2143%186%
Kazakhstan2123%122%
Mongolia1743%113%
Egypt1492%N/A
Other69711%-22%
Total6 137100%-33%

 

Six months 2019 unconsolidated salesSales, thous. EURShare in total salesChanges to six months 2018
Russia16 04032%4%
Latvia8 58817%0.2%
Belarus7 30514%4%
Ukraine5 66711%-5%
Uzbekistan1 7403%37%
The Netherlands1 5503%623%
Germany1 0092%-5%
Kazakhstan9872%-3%
Tajikistan9702%40%
Lithuania6431%-37%
Other5 89912%4%
Total50 398100%5%

Results of subsidiaries – June and the first six months of 2019

The pharmacy chain SIA Latvijas Aptieka sales reached 1.9 million euros in June 2019, which represents a 1% decrease compared to June 2018. 68 pharmacies were operating during this period. SIA Silvanols sales reached 0.46 million euros in June 2019, representing a decline by 8% vs. June 2018. The combined sales of Tonus Elast and Elast Medical in June 2019 were 0.8 million euros, which is at the same level as this time last year. Olainmed and Diamed Medical Center sales reached 0.24 million euros, while the Belarus subsidiary NPK Biotest reached 0.21 million euros in sales in June.

During the first six month period of 2019, SIA Latvijas Aptieka sales amounted to 13.0 million euros, demonstrating a 6% increase in comparison to the same time period last year, sales of SIA Silvanols reached 3 million euros which is 2% less than last year. The combined sales of Tonus Elast and Elast Medical totaled up to 4.5 million euros which is approximately the same as the last year. Medical Centers Diamed and Olainmed revenues were 1.5 million euros during the first six months of this year and the Belarus company NPK Biotest sales were worth 1.5 million euros, improving the result of last year.

June 20196 months 2019
Sales markets of Olainfarm3043
Sales markets of the Group3652
Number of pharmacies68
Sales of Latvijas Aptieka, thous. EUR1 90912 968
Sales of Medical centers, thous. EUR2371 536
Sales of NPK Biotest, thous. EUR2101 481
Sales of Tonus Elast and Elast Medical, thous. EUR7994 539
Sales of Silvanols, thous. EUR4582 962

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 six months of 2019, 51% of annual target for unconsolidated sales and 50% 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.

 

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

read more
Olainfarm Group sales in the first half of the year increased by 7%

Resolutions of the Extraordinary General Meeting of Shareholders of JSC Olainfarm

on June 21, 2019

June 21, 2019 in JSC Olainfarm held an Extraordinary General Meeting of Shareholders.

The agenda included issues concerning the recall of the Council and the election of a new Council, the recall of the Audit committee and the election of a new Audit committee.

The majority of Shareholders voted against the replacement of the Council and the Audit committee, expressing its trust in the existing JSC Olainfarm Council, which has been working professionally since April 1-st.

Additional information please find in company announcement at Nasdaq Baltic.

read more
Resolutions of the Extraordinary General Meeting of Shareholders of JSC Olainfarm

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

read more
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.

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