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JSC Olainfarm decide to gift Pauls Stradiņš Clinical University Hospital artificial lung ventilation devices in the worth of EUR 100 thousand

on March 26, 2020

In order to support the treatment of people infected by Covid-19 and considering the declared state of emergency in Latvia, on 25 March JSC Olainfarm made the decision to support State-owned limited liability company Pauls Stradins Clinical University Hospital. JSC Olainfarm has started a EUR 100 000 purchase of artificial lung ventilation equipment, which will be gifted to the hospital in order to ensure the treatment of people infected by the Covid-19 virus. In addition, JSC Olainfarm will provide half a tonne of isopropyl alcohol solution free of charge, to be used for disinfecting purposes and to limit the spread of the Covid-19 outbreak.

“We have a great responsibility not only towards JSC Olainfarm and the employees of the entire Group, but, as one of the largest pharmaceutical companies in the Baltics, also towards our country and the overall health of its citizens. The spread of coronavirus needs to be limited and we have to prepare crisis solutions. We have implemented strict procedures within the company in order to prevent Covid-19 from spreading and to take care of our employees’ health along with the uninterruption in supplying products manufactured by Olainfarm. Today we are going a step further and want to help our society by deciding to donate artificial lung ventilation devices, which are vital in saving the lives of people with severe cases of coronavirus,” says  Milana Beleviča, JSC Olainfarm Member of the Management Board.

“This is a time during which we are especially grateful for help and the gift that will help us save the lives of our patients! The specialists at Pauls Stradiņš Clinical University Hospital are ready to help anyone in need and, although we all hope that Latvia will not be majorly affected by this crisis, we are also preparing for a scenario where many will need help,” profesor Eva Strīķe, Pauls Stradiņš Clinical University Hospital Main doctor, says with gratitude.

Artificial lung ventilation devices to Pauls Stradiņš Clinical University Hospital are planned to be delivered in May, a total of four HAMILTON C1 medical devices will be purchased and supplied by Arbor Medical Corporation Ltd., which offers high quality medical products from globally recognised manufacturers and works in accordance with international standardization certificates and ethical principles.

Tonus Elast, a JSC Olainfarm subsidiary, led by social responsibility has started the production of face masks in a short period of time, since the beginning of March. Face masks are handmade and qualify as a tool of personal protection serving as a barrier against dust, tiny particles and droplets. Such masks are currently a deficit. For the purposes of increasing production capacity, Tonus Elast is transferring its technological knowledge to partners in Latvia who are prepared to start the production of the masks.

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JSC Olainfarm decide to gift Pauls Stradiņš Clinical University Hospital artificial lung ventilation devices in the worth of EUR 100 thousand

JSC OlainFarm appoints a new member of the Management Board of Latvijas aptieka

on March 19, 2020

The Management Board of JSC OlainFarm decided to make changes in the Management Board of Latvijas aptieka Ltd. by appointing Marina Serpova, whose professional experience in business management and financial management will contribute to achieving the company’s goals, as a Member of the Management Board. JSC OlainFarm is gradually improving the activities of its subsidiaries and is gradually moving towards the signing of the OlainFarm Group agreement.

The current members of the Management Board of Latvijas aptieka Ltd. will continue to perform their duties as usual with the new Management Board structure.

Marina Serpova has two degrees – technical and financial. She has 18 years of experience as a CFO, as well as in corporate and financial management in various sectors in Latvia and also abroad. Until now, Serpova has developed important skills in financial and accounting matters, team leadership and motivation. Serpova does not own any JSC OlainFarm shares.

“The goal of OlainFarm is to further strengthen the quality of our subsidiaries and move towards uniform management practices across the group. We are on the way to concluding a group agreement in order to ensure proper and joint management. Our goal is to guide the OlainFarm Group towards further sustainable development in line with modern risk management and our ambitious goals of becoming one of the TOP10 pharmaceutical companies. I highly value the OlainFarm Group’s corporate team and I am convinced that the knowledge provided by a new team member is valuable for further successful development,” emphasizes Milana Beļeviča, member of the Management Board of JSC OlainFarm.

Last year 68 pharmacies were operating in 20 Latvian cities within the Latvijas aptieka Ltd. network of pharmacies owned by JSC OlainFarm. According to preliminary financial data during the entire 2019,  Latvijas aptieka sales amounted to EUR 26.1 million, demonstrating an 8% increase in comparison to 2018.

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 the 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

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JSC OlainFarm appoints a new member of the Management Board of Latvijas aptieka

February sales in several markets exceeded prior year results; procedures are in place to limit the spread of coronavirus

on March 18, 2020

Olainfarm group’s indicative consolidated sales in February reached EUR 11 million, which is a decline by 4% compared to February last year. Latvia’s share in total revenue was 30%, Belarus’ was 21% and Russia’s was 20%. Sales increased in Latvia by 4%, in Belarus by 36%, in Central Asia and in Caucasian countries by 100% and 43%, respectively. In the EU countries sales rose by 10%. At the same time, in Russia there was a drop by 30% and in Other countries by 22%. In March the Group started cooperation with one of the largest pharmaceutical distributors in Ukraine, which will allow to reach substantial results in the long-term.

Taking into account the announcement by the World Health Organization on March 11, 2020 that Covid-19 has been declared a pandemic, the Latvian government has, on March 12, declared a state of emergency, thereby limiting and seeking to reduce the spread of the virus by reduction of direct contact between people. Olainfarm has strict procedures in place to prevent the spread of the virus in order to protect employees and to continue production.

JSC Olainfarm has sufficient inventory of raw materials and excipients in place to secure manufacturing process and is on a regular base in contact with companies delivering raw materials and excipients from outside Latvia for future manufacturing needs. JSC Olainfarm conducts daily health monitoring of employees to guarantee the production planning of the products and have put precautionary measures in place regarding health and transport of the employees. Group is also on a daily base in contact with the distributors and partners abroad to secure product flow in their markets.

During the first two months of 2020, Olainfarm group’s indicative consolidated sales amounted to EUR 18.5 million. It is by 22% less than in 2019 due to additional volumes sent to Russia in amount of EUR 6 million in the second half of 2019 when wholesalers anticipated introduction of serialization requirements and it has been taken into consideration in the forecasts for 2020. At the beginning of this year Latvia’s market has the largest share of revenues (36%), Belarus’ share was (23%) and Russia’s share was 12%. The fastest increase in revenue during the two-month period was in the Central Asian and Caucasian regions where the sales were 76% and 88% more than a year ago, in Latvia revenue increased by 2% but in Belarus by 9%. At the same time sales declined in Russia (-63%), in the EU countries (-6%) and in Other countries (-8%).

“February results show a positive trend, with sales in Russia picking up, we expect the results of the first quarter to be on in line with budget for 2020. Olainfarm is ready for the challenges related to Covid-19 restrictions worldwide, we have sufficient raw materials for the coming months so that the restrictions related to the spread of coronavirus do not affect the availability of the company’s raw materials. To ensure long-term competitiveness, we are investing significantly in the planning of clinical trials in order to start one Phase 1 and three Phase 3 clinical trials this year and early 2021 needed to remain compliant with our core products to regulatory requirements, while continuing to providing customers with top-quality formulations,” said Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.

February 2020, consolidated results         Sales, mil. EUR       Share in total sales       Compared to February 2019
Latvia3.29430%4%
Belarus2.31621%36%
Russia2.22520%-30%
Central Asia1.10710%100%
EU countries1.08810%95%
Other countries0.7427%-22%
Caucasian countries0.1762%43%
Ukraine0.0050%-100%
Total10.953100%-4%

 

Two months 2020, consolidated sales       Sales, mil. EUR        Share in total sales       Changes to two months 2019
Latvia6.67436%2%
Belarus4.29723%9%
Russia2.27512%-63%
Central Asia1.90810%76%
EU countries1.85610%-6%
Other countries1.1186%-8%
Caucasian countries0.3782%88%
Ukraine0.0060%-100%
Total18.512100%-22%

The Central Asian region includes Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, Mongolia and Turkmenistan.
The EU country region includes all of the European Union member states except for Latvia;
Other countries include all of the countries in the world, which are not included in any other groups;
The Caucasian countries are Georgia, Armenia and Azerbaijan.

Unconsolidated sales in February and two months

According to the preliminary unconsolidated figures, JSC Olainfarm sales reached EUR 8 million in February 2020 which represents a decrease by 8% compared to February, 2019. Sales of products in February improved in Belarus by 40%, in Central Asian countries by 126%, in the EU countries by 93%, in the Caucasian countries by 72% and in Latvia by 3%. Sales in February declined in Russia by 32% and in Other countries by 31%. As announced before there were additional sales to Russia in the second half of 2019 due to anticipated regulatory requirements on serialization scheduled for 2020.

During the first two months of this year JSC Olainfarm preliminary revenue declined by 31% and was EUR 12.9 million. The largest sales outlet was Belarus where the revenue climbed up by 7% compared to the two-month period a year ago, in Latvia sales were flat, in Central Asia there was an increase by 84% and in Caucasian countries by 46%. At the same time revenue declined in Russia by 69% and in the EU countries by 10%.

February 2020, unconsolidated sales       Sales, mil. EUR      Share in total sales       Compared to February 2019
Belarus1.99925%40%
Russia1.87123%-32%
Latvia1.44318%3%
Central Asia0.94612%126%
EU countries0.93612%93%
Other countries0.6518%-31%
Caucasian countries0.1762%72%
Ukraine00%-100%
Total8.022100%-8%

 

Two months 2020, unconsolidated sales       Sales, mil. EUR        Share in total sales         Changes to two months 2019
Belarus3.58428%7%
Latvia3.03823%0%
Russia1.7413%-69%
Central Asia1.72113%84%
EU countries1.56212%-10%
Other countries1.028%-9%
Caucasian countries0.2642%46%
Ukraine0.0020%-100%
Total12.931100%-31%

Results of subsidiaries in February and two months

The pharmacy chain Latvijas Aptieka sales reached EUR 2.2 million in February 2020, which represents a 2% increase compared to February, 2019. 68 pharmacies were operating during this period. Silvanols sales reached EUR 0.5 million in February 2020, representing a decrease by 15% versus February, 2019. The combined sales of Tonus Elast and Elast Medical in February 2020 were EUR 0.8 million, which is 11% more than this time last year. Olainmed and Diamed Medical Center sales reached EUR 0.3 million, while the Belarusian subsidiary NPK Biotest reached EUR 0.31 million in sales in February, which is 11% higher than in February of  last year.

During the first two month period of 2020, Latvijas Aptieka sales amounted to EUR 4.6 million, demonstrating a 2% increase in comparison to the same time period last year. Sales of SIA Silvanols reached EUR 0.9 million which is 16% less than last year. The combined sales of Tonus Elast and Elast Medical during the first two months of this year totaled up to EUR 1.3 million, which is an increase by 6%. Medical Center Diamed and Olainmed revenue was EUR 0.6 million during the first two months of this year and the Belarusian company NPK Biotest sales were worth EUR 0.6 million, improving the result of last year by 8%.

February 2020       Two months 2020
Sales markets of Olainfarm3036
Sales markets of the Group3441
Number of pharmacies68
Sales of Latvijas aptieka, mil. EUR2.1644.55
Sales of Tonus Elast and Elast Medikl, mil. EUR0.7841.304
Sales of Silvanols, mil. EUR0.4950.896
Sales of Medical centers, mil. EUR0.2930.596
Sales of NPK Biotest, mil. EUR0.3120.593

According to the JSC Olainfarm 2020 budget, unconsolidated sales are planned to reach EUR 97.3 million in 2020, while consolidated sales are expected at EUR 135.5 million.  According to these preliminary sales figures, in the first two months of 2020, 13% of annual target for unconsolidated sales and 14% of annual target for consolidated sales have been reached.

JSC Olainfarm has reviewed announcement procedure of monthly revenue data. In April this year sales data for March is planned to be released, afterwards revenue data will be disclosed on quarterly basis, starting from the second quarter sales figures.

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 the 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

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February sales in several markets exceeded prior year results; procedures are in place to limit the spread of coronavirus

Thanks to the donation of JSC Olainfarm, Riga Stradiņš University Faculty of Law will implement virtual reality technologies

on March 10, 2020

JSC Olainfarm donation (EUR 10 000) will ensure the promotion of digitalization of the study process for the law students of Riga Stradiņš University (RSU). Thanks to the donation, RSU Faculty of Law will digitalize the range of study courses offered using virtual reality technology in the learning process.

“Modernization and digitalization of the study process is important in all fields of study including specific courses implemented by Riga Stradiņš University such as Medical Law, Health Care Organizational Law, Biomedical Legal Problems and Pharmaceutical Law. The donation given by JSC Olainfarm is an invaluable support in getting as many students as possible to obtain an education matching all modern requirements,” said the Dean and professor Dr. iur Andrejs Vilks, Faculty of Law Riga Stradiņš University. The formal event was also attended by Rīgas Stradiņš University  study protector Prof. Dr. habil. paed. Tatjana Koķe.

“The key to any success is hard work, courage, true dedication as well as good education. JSC Olainfarm is pleased to be able to support the modernization of the learning program, because we are convinced that innovations and high quality of production go hand in hand with our investment in new talents. We are grateful to Riga Stradiņš University for the high-level specialists that we would be glad to see amongst our colleagues in future. If any young person is still trying to decide on his or her future career, pharmacy and chemistry combined with jurisprudence are definitely promising fields,” says JSC Olainfarm Member of the Management Board Milana Beleviča, who has completed Law program at Riga Stradiņš University.

Modernization of study programs

With the help of the donated funds, the Faculty of Law will purchase virtual reality goggles and a virtual reality platform will be developed that will allow to create the experience of legal situations. In this way, students studying pharmaceutical law will have the opportunity to develop and strengthen their theoretical knowledge, skills and competences on the nature of the legal issues specific to pharmaceutical law as well as conduct appropriate case studies.

Whereas, by using the virtual reality goggles and virtual reality platforms, students in the field of medical law will be able to gain practical and theoretical knowledge, skills and competences concerning patient and health professionals’ legal relationships.

Riga Stradiņš University Faculty of Law provides a full cycle of law studies – an academic bachelor’s degree, academic and professional master’s degree, as well as doctoral study programs.

JSC Olainfarm social responsibility activities are aimed at the community – supporting health care and a healthy lifestyle, science and education, culture and succession of employees.

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Thanks to the donation of JSC Olainfarm, Riga Stradiņš University Faculty of Law will implement virtual reality technologies

JSC Olainfarm strengthens its presence in Russia and establishes a subsidiary

on March 4, 2020

In February of this year, Olainfarm made a strategic decision and established a subsidiary in Moscow, Russia. Russia is one of Olainfarm key focus markets and strategic priority for market presence. The new entity will enable Olainfarm to conduct in-depth market research and collect customers’ insights, better respond to customer needs and manage promotion and trade processes. Until now, JSC Olainfarm did not have direct market access and provided products to the markets of CIS countries through partnership agreements.

“The Olainfarm brand is well known in Russia, our products are important to patients’ health, especially in neurology, psychiatry, and urinary tract infections. Based on market research agencies, every year about 1,8 million of Russian patients use Olainfarm medications to treat various health conditions including inflammation, pain, depression, cognitive disorders in order to be able to enjoy life again,” explains Elena Bushberg a member of the Management Board and CEO of OlainFarm, a part of Olainfarm Group of companies.

The Russian subsidiary will be managed by a professional expert in sales, marketing, and commercial excellence with more than 20 years of experience in international pharmaceutical companies.

“This is a strategic step for Olainfarm long-term presence in Russia demonstrating our commitment to Russian healthcare needs and patients well-being. Our aim is also to ensure sustainability and transparency of all operations, enhance the good reputation for Olainfarm, and create value for our employees, business partners, society, shareholders and the organization as a whole,” adds Elena Bushberg. “We are currently actively recruiting for our new sales and marketing organization and looking for young and ambitious talents to join our Russian team”.

In 2019, Olainfarm group’s sales reached 137 253 thousand EUR, which is an increase by 10% or 12 997 thousand EUR. Profit for the last quarter of 2019 was 8 245 thousand EUR, which is an increase by 152% in comparison with the same period 2018. Olainfarm sales if compared to 2018 results – sales to Russia increased by 23%, Latvia by 5%, Belarus by 10%, the Central Asian region by 13%, the EU countries by 12%, sales to Other countries by 10%.

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JSC Olainfarm strengthens its presence in Russia and establishes a subsidiary

Olainfarm Group’s net profit in 2019 increased by 156% and exceeded 27 million EUR; reviewed commercial processes will improve sales of products in the main markets

on March 2, 2020
  • In 2019, Group’s sales reached 137 253 thousand EUR, which is an increase by 10% or 12 997 thousand EUR.
  • Group’s EBITDA was 37 192 thousand EUR, which is by 84% higher.
  • Group’s profit reached 27 443 thousand EUR, which is the largest profit amount in history.
  • In 2020, Group forecasts revenues of 135 500 thousand EUR and net profit of 14 200 thousand EUR.

“The year 2019 is the financial best year for Olainfarm Group as well as in sales revenue as net profit. These great results are a good platform to continue to grow and with our products bring value for more and more patients. With the establishment of our new subsidiary in Russia we plan to strengthen our positions in our key markets. We are also well on our way to becoming in the top 10 of pharmaceutical manufacturers in Central Eastern Europe,” said Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.

Group’s sales during the 4th quarter of 2019 were 38 479 thousand EUR and that is by 11% more than in the last quarter of 2018 when sales were 34 751 thousand EUR. In the 4th quarter 2019 EBITDA was 10 935 thousand EUR that surpassed the figure of the last quarter of 2018 by 5 036 thousand EUR or 85%. Profit for the last quarter of 2019 was 8 245 thousand EUR, which is an increase by 152% in comparison with the same period 2018.

During the full year of 2019 Group’s sales reached 137 253 thousand EUR, which is an increase by 10% or 12 997 thousand EUR compared to 2018. Group’s EBITDA figure in 2019 was 37 192 thousand EUR, which is by 84% or 16 964 thousand EUR more than the results of 2018. Group’s net profit in 2019 was 27 443 thousand EUR, which is the largest net profit amount in history of the Group. Profit increased by 156% or 16 712 thousand EUR in comparison with 2018.

The reporting period profit was favorably affected by the increase in gross profit by 9 973 thousand EUR, which is related to the major final dosage forms manufacturing in larger quantities, decrease in selling expense by 7 132 thousand EUR due to review of relations with marketing partners and income from foreign exchange fluctuations (2 187 thousand EUR) against losses of 2 368 thousand EUR from foreign exchange fluctuations in 2018. Additional net profit of approximately 4 750 thousand EUR was generated due to extraordinary sales to Russia. The net profit was negatively affected by increase in administrative expenses and impairments.

Group’s successful operations allowed to accumulate 15 225 thousand EUR at the end of 2019 and that will be one of the main sources of financing for fixed assets purchases and investments as well as investments into research and development activities linked for accomplishing clinical trials.

According to the approved Dividend policy the Management Board for 2019 will recommend dividend payout of 20% of Parent audited net profit.

Group’s Debt service coverage ratio (DSCR) during 2019 increased from 2.1 to 3.1. Net Debt-to-EBITDA ratio has been improving for the third year in a row and was 0.2 at the end of 2019.

The Group’s main business segment is final dosage forms that are manufactured by Parent in Olaine. In 2019 pharmaceutical products worth 80 991 thousand EUR were sold, which is an increase by 14% or 10 044 thousand EUR if compared to 2018.

Parent’s sales to various countries and regions during 2019 had mostly positive trend. If compared to 2018 results, sales to Russia increased by 23%, Latvia by 5%, Belarus by 10%, the Central Asian region by 13%, the EU countries by 12%, sales to Other countries by 10%. Decline in sales was in Ukraine and the Caucasian region by 4% and 3%, respectively.

Throughout 2019 sales of JSC Olainfarm main final dosage forms continued to increase. A share of the best sold product Noofen increased to 20% that is by one percentage point more than a year before. The share of the three largest products: Noofen, Neiromidin and Furamag/Furasol comprised 56% that is also by one percentage point higher than a year before. At the same time in the 4th quarter this year the bestselling product was Noofen with 22% share, followed by Neiromidin with 21% and Furamag/Furasol group with 17%.

Pharmacies segment in 2019 generated revenue increase by 7% compared to 2018 and reached 25 417 thousand EUR. During the 4th quarter 2019 sales of pharmacies were 6 776 thousand EUR, which is 6% increase in comparison with the same period in 2018.

Revenues of Compression materials segment in 2019 were 8 793 thousand EUR that is 8% or 713 thousand EUR less than a year before. Sales of compression goods during the last quarter of 2019 were 2 349 thousand EUR, which is a drop by 13% against the fourth quarter of the previous year.

Revenues of Wholesale segment from external customers were 5 382 thousand EUR, which is a decline by 2% or 104 thousand EUR. Wholesale revenues in the 4th quarter 2019 were 11% more than during the same period 2018 and reached 1 485 thousand EUR.

The Chemical segment’s income in 2019 was 16% higher than in 2018 and reached 5 124 thousand EUR. Revenues from chemical products in the 4th quarter of 2019 were 1 097 thousand EUR, which is a decline by 20% if compared to the last quarter of 2018.

Other segment combines Silvanols, Diamed and Olainmed medical facilities, Belarussian manufacturing company Biotest and other, and this segment generated 11 546 thousand EUR in revenues in 2019, which is 15% more than in 2018. During the last quarter of 2019 sales increased by 4% and were 3 128 thousand EUR.

According to the previous plan a set of pre-clinical and clinical trials was conducted in 2019. Throughout 2019 five 1st phase clinical trials (pharmakinetics and bioavailability) were started with completion of trial planning, drafting required documentation and issue of permits. Trials are set to close and final reports to be received in the 1st to 3rd quarters, 2020.

At the same time in 2019 planning and preparation phase for 3rd phase clinical trials for two final dosage forms took place, with a plan to start the trials in 2020. Implementation of clinical trials for peripheral nervous system diseases is planned for the 1st quarter, 2020.

During 2020 substantial investments are intended  for planning of clinical trials in order to start one 1st phase clinical trial and three 3rd phase clinical trials in the period of 4th quarter 2020 – 1st quarter 2021.

For 2020, Group estimates revenues to be 135.5 million EUR and net profit of 14.3 million EUR as well as EPS of 1 EUR. JSC Olainfarm forecast revenues in amount of 97.3 million EUR and net profit of 13.4 million EUR.

During this year the Group’s capital expenditures are planned in amount of 19.5 million EUR, incl. 9.4 million EUR in product development. Strong cash position and high forecasted operating cash flows allow the Group to finance investments and to continue repayment of borrowings.

At the same time Group estimates that in the 1st quarter 2020 revenues and net profit will be lower than the results in 2019, however, accelerated in-market performance in the following quarters will allow to reach annual forecasts.

Condensed Consolidated Statement of  Financial Position

 Group
 31.12.2019        31.12.2018
 EUR ‘000EUR ‘000
   ASSETS 
NON-CURRENT ASSETS 
Intangible assets38 68836 619
Property, plant and equipment42 46343 697
Right-of-use assets7 069
Investment properties3 4283 492
Other non-current assets 801 983
TOTAL NON-CURRENT ASSETS92 449  84 791
CURRENT ASSETS 
Inventories28 65525 794
Receivables36 03134 637
Cash15 2252 689
TOTAL CURRENT ASSETS79 911  63 120
TOTAL ASSETS172 360147 911
 
 EQUITY AND LIABILITIES 
EQUITY 
Share capital19 71919 719
Share premium2 5042 504
Reserves(12)(224)
Retained earnings109 11383 079
TOTAL EQUITY131 324  105 078
LIABILITIES 
Non-current liabilities 
Borrowings and lease liabilities12 0211 793
Deferred income3 1942 878
Total Non-Current Liabilities15 215  4 671
Current liabilities 
Borrowings and lease liabilities9 73223 236
Trade payables and other liabilities15 59414 540
Deferred income 495 386
Total Current Liabilities25 821  38 162
TOTAL LIABILITIES41 036  42 833
TOTAL EQUITY AND LIABILITIES172 360147 911

Consolidated statement of comprehensive income

 GroupGroup
 Q4 2019             Q4 2018M12 2019           M12 2018
 EUR ‘000EUR ‘000EUR ‘000EUR ‘000
Revenue 38 479 34 751 137 253 124 256
Cost of goods sold(13 975)(13 596)(52 424)(49 400)
Gross Profit  24 504  21 155  84 829  74 856
Selling expense(7 803)(10 576)(30 159)(37 291)
Administrative expense(6 203)(7 312)(26 670)(24 427)
Other operating income740612 2 317 2 559
Other operating expense(2 812)734(4 074)(1 726)
Share of profit of an associate62398106
Financial income16719 2 26076
Financial expense (223) (994) (926)(2 788)
Profit Before Tax 8 376 3 661 27 675 11 365
Corporate income tax (179) (380) (279) (630)
Deferred corporate income tax48 (4)47 (4)
PROFIT FOR THE REPORTING PERIOD 8 245 3 277 27 443 10 731
Other comprehensive income for the reporting period (59) (67)212 (150)
Total comprehensive income for the reporting period 8 186 3 210 27 655 10 581
Total comprehensive income attributable to: 
The equity holders of the Parent Company 8 186 3 210 27 655 10 581
Non-controlling interests
 
Basic and diluted earnings per share, EUR 0.59 0.23 1.95 0.76

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

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Olainfarm Group’s net profit in 2019 increased by 156% and exceeded 27 million EUR; reviewed commercial processes will improve sales of products in the main markets

2019 Annual Medicine Awards top sponsor JSC Olainfarm urges people to vote

on February 19, 2020

This year, the Annual Medicine Awards will take place for the tenth time, organised by the Latvian Medical Association. As the main sponsor of this key healthcare industry event, JSC Olainfarm joins the call for the people of Latvia to celebrate medical professionals and vote  for our country’s best physicians by 1 March.

‘We cannot measure the immense contribution of doctors, nurses and other medical workers who invest all their time, effort, energy and health in their profession, in purely monetary terms. The Annual Medicine Awards make it possible for every person in Latvia to vote and express their respect to people working in this field. We are truly proud of getting the chance to sponsor the biggest event in the healthcare industry, which serves as a moral incentive and endorsement for medical professionals. I urge every person in Latvia to join the voting, because physicians in this country need our encouragement and support,’ said JSC Olainfarm Member of the Supervisory Council Gundars Bērziņš.

This year, the Annual Medicine Awards will be issued in 14 categories: Family Physician of the Year, Specialist Physician of the Year, Dentist of the Year, Medical Assistant of the Year, Pharmacist of the Year, Nurse of the Year, Obstetrician of the Year, Functional Specialist of the Year, and Hospital of the Year.

As usual, the Annual Medicine Awards also include the Person of the Year in Medicine, the Medical Event of the Year, and Medical Lifetime Achievement Award of the Year. Experts from the Latvian Medical Association will determine the winners in these categories. Finally, the medical students of the Riga Stradiņš University and the University of Latvia will vote for their professors in the Instructor of the Year category.

About Annual Medicine Awards

The first Annual Medicine Awards were issued in 2008. The awards have grown in prominence over the years, currently being the most important event of the year for the healthcare industry. There has also been more public involvement, and people send applications even from abroad, because they want recognition for top physicians. Because of the economic crisis, no awards were issued in 2010, and this tradition was restored in 2012. Almost 13 thousand people voted for the 2019 Annual Medicine Awards in Latvia, with awards in 15 categories. Metal artist Armands Jēkabsons originally created the Annual Medicine Awards.

About Olainfarm

JSC OlainFarm is one of the largest pharmaceutical companies in the Baltic States with more than 45 years of experience in production of medicines and chemical and pharmaceutical products. The basic principle of the company is to produce reliable and effective top-quality products for Latvia and the global market. JSC OlainFarm exports its products to more than 60 countries worldwide, including the Baltic States, Russia, other CIS countries, Europe, North America, Asia and Australia.

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2019 Annual Medicine Awards top sponsor JSC Olainfarm urges people to vote

17 students visited JSC OlainFarm during “Ēnu diena”

on February 14, 2020

On 12 February, during the “Ēnu diena”, a career education initiative for students, JSC OlainFarm hosted 17 students who showed an in-depth interest about the pharmaceutical sector. Students representing 10 local schools took the opportunity to familiarise themselves with the everyday work of the Manufacturing Department, Technical Department, the Laboratory of finished dosage forms, Chromatography Centre, the Central Laboratory of the Factory, the Commercial Department and Human Resources Management specialists at JSC OlainFarm.

“I am pleased that students have the opportunity to get an in-depth knowledge of the professions they are interested in as part of their education. Thanks to all the colleagues who provided the opportunity for students! I am proud that we are able to inspire the young people in Latvia to link their future to caring for others’ health. Nowadays salary isn’t the only criterion for people seeking a place to work, especially for young people. Work environment and growth opportunities play a big role. Encouraging employee growth in a learning environment is one of the directions of development for JSC OlainFarm” says Jeroen Weites, Chairman of the Board of JSC OlainFarm.

Students in grades 9 – 12 from the Riga State Gymnasium No. 1, Riga State Gymnasium No. 2, Riga State Technical School No. 47, Riga Jugla Secondary School, Olaine Secondary School No. 1, Riga Pardaugava Elementary School, Riga Secondary School No. 63, RTU Olaine College of Technology and Lubana Secondary School observed the daily tasks of JSC OlainFarm experts, students got a chance to take a closer look at what a career in the pharmaceutical industry would entail.

The survey conducted by Junior Achievement Latvia on student future careers shows a significant increase in students’ interest in the medical and healthcare sectors – 17% of the respondents would like to work in healthcare ranking it as one of the TOP3 most popular career choices alongside with social studies, commercial science and jurisprudence (22%) as well as humanities and the arts (17%).

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17 students visited JSC OlainFarm during “Ēnu diena”

JSC OlainFarm introduces experimental technologies to manufacture new products

on February 12, 2020

The implementation and audit of the project “Introduction of experimental technology for manufacturing of new products at JSC OlainFarm” was successfully completed in January of this year. As part of the project launched in May, 2017, altogether 253 components of an experimental production line were delivered and installed. Their total value was EUR 6.4 mln, including EUR 2.2 mln financing from the European Regional Development Fund.

It is planned that the new experimental production line and its components will be used for research and development of production technologies to make new products – intermediates, active pharmaceutical ingredients, final dosage forms, as well as for production technology transfer, manufacturing of new products and quality control, including in production of a new antituberculosis medication.

“Manufacturing is an important pillar within OlainFarm. Bringing innovation to the manufacturing process is critical for OlainFarm to build a sustainable future with new products we anticipate to launch as part of our growth strategy. I am proud OlainFarm is cooperation with the World Health Organization in supplying our anti-tuberculosis medication to devel

oping countries in Asia and Africa to improving the quality of life and life expectancy of the local population,” says Jeroen Weites, Chairman of the Management Board of JSC OlainFarm.

Marina Vorobjova-Vaisla, Director of the Entrepreneurship and Innovation Department of the Central Finance and Contracting

Agency approvingly evaluates OlainFarm’s strategic approach to investing the European Union (EU) funds: “OlainFarm is a company with many years of experience and continuous development, which invests the EU funds strategically, strengthening international competitiveness. Promoting business innovation is one of the most important goals nationally being supported by EU funds – we are pleased that there are companies that can make these goals achievable through their activities.”

Currently under development is a generic anti-tuberculosis product – one of the new OlainFarm products. The anti-tuberculosis drug is being transferred from the laboratory to the manufacturing and scaling at the industrial installations. Successful processes could lead to commercialization of the product as early as 2023.

“OlainFarm has a historically established expertise in the development and manufacture of anti-tuberculosis drugs, and we are confident that our product will help people all around the world dealing with this illness,” emphasizes Jeroen Weitess, Chairman of the Management Board of OlainFarm.

JSC OlainFarm makes active use of the opportunities and support offered by the EU funds through investments in research, innovations and technologies. The support provided by the EU funds has positive effects on the operations of JSC OlainFarm.

JSC OlainFarm is one of the largest pharmaceutical companies in the Baltic states with more than 45 years of experience in production of medicines and chemical and pharmaceutical products. The basic principle of the company is to produce reliable and effective top-quality products for Latvia and the global market. JSC OlainFarm exports its products to more than 60 countries worldwide, including the Baltic states, Russia, other CIS countries, Europe, North America, Asia and Australia.

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JSC OlainFarm introduces experimental technologies to manufacture new products

Joint Stock Company “Olainfarm” January 24, 2020 Extraordinary Shareholders Meeting has not been held due to lack of quorum

on January 24, 2020

Today, 24 January, JSC Olainfarm Extraordinary Shareholders meeting which was convened at the request of the company’s largest shareholder, OLMAFARM Ltd, did not take place due to lack of quorum. The Shareholders registered for the JSC Olainfarm Extraordinary Shareholders meeting represented 2 978 701 shares in total with voting rights or 21.15% of the voting capital. As a result, the Extraordinary Shareholders meeting did not have the quorum required.

According to the articles of association of the company, the Shareholder meeting cannot be held if the specified number of shareholders with the rights to vote on the items covered on the agenda is not represented. In order for the Shareholders meeting to be valid, it must be held in accordance with the articles of association of the company. As publicly stated in September, the District Court of Zemgale upheld the request to temporarily deny OLMAFARM the right to vote in the Shareholders meetings of JSC Olainfarm until the dispute is resolved.

Due to Extraordinary Shareholders meetings becoming a regularity, the order of these meetings has been improved. The registration for the Shareholders meeting took place immediately upon entering the company building, avoiding the need for the Shareholders to have to register twice. In addition, employees’ daily agendas were not altered allowing them to use the only canteen on the premises of the company.

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

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Joint Stock Company “Olainfarm” January 24, 2020 Extraordinary Shareholders Meeting has not been held due to lack of quorum