Consolidated Sales Of Olainfarm In 2018 Exceed 124 Million, Marking The New Record

on March 1, 2019

Consolidated profit and loss calculation of JSC Olainfarm for 2018 shows that with the sales worth more than 124 million euros the Group has set the new annual sales record. In 2018 the net profit of Olainfarm Group reached 10.3 million euros, which is a reduction by almost 5% compared to the net earnings of 2017. The products of the Group were sold in 54 markets worldwide.

Based upon the annual results, the Board will recommend the shareholders to decide on paying 1.4 million euros in dividends from earnings of 2018, that equals approximately 0.10 euros per share.

In 2018, compared to 2017, the sales volumes have increased by more than 2 million euros or by almost 2% and exceeded 124 million euros.  Although the Group failed to achieve the previously announced sales target of 130 million, it has set the new annual sales record.  During the last quarter, EBITDA for twelve months has grown significantly, reaching EUR 20.5 million. EBITDA profitability in the past 12 months also reached 17%. Both of these indicators are the highest since the beginning of 2016.

In 2018, the company has managed to reduce its sales costs and grow in almost all major sales markets, except for Russia, where sales fell by 5% due to previously anticipated fluctuations of the Russian ruble. On the other hand, increased presence in both Latvian and Belarusian markets has resulted into significant increase in sales in both markets. The largest sales growth of 54% was achieved in Belarus, and also in Tajikistan, where sales grew by 32%. Sales in Latvia also grew by 23%, making the home market the second largest in terms of turnover after Russia.

During the 4th quarter of 2018, compared to 4th quarter of 2017, sales of the Company increased by more than 3 million euros or by almost 10%, reaching 34.8 million euros and making this the best quarter in terms of sales in corporate history.

Since 2017, some significant changes have occurred to the sales structure of bestselling products of Olainfarm.  Remantadine and PASA were replaced by Meldonium and Memantine, while shares of Noofen and Neiromidin have become comparable.

Despite the growing number of export markets, diversification of sales markets remains one of the main challenges for Olainfarm Group. In 2018, the company also focused on conducting additional researches to ensure the presence of its products in existing sales markets and preparing to open new ones in the future.

Annual meeting of shareholders of JSC Olainfarm, convened on June 5, 2018 approved operating plan of the Group for 2018.  According to it, sales of the Group in 2018 are planned to be 130 million euros, but the net profit will reach 11.5 million euros.  According to the unaudited report of 2018, during the year 96% of annual sales target and 90% of annual profit target is met.

Condensed Consolidated Statement of Financial PositionGroup
  EUR ‘000EUR ‘000
Intangible assets36 61937 034
Property, plant and equipment43 69841 892
Investment properties3 4923 526
Financial assets9852 609
Inventories25 26524 161
Receivables34 33734 049
Cash2 6893 158
TOTAL ASSETS147 085146 429
Share capital19 71919 719
Share premium2 5042 504
Other components of equity(224)(74)
Retained earnings82 65675 675
 TOTAL EQUITY104 65597 824
Non-current liabilities  
Borrowings10 39815 878
Deferred income2 7562 347
 Total Non-Current Liabilities13 15418 225
Current liabilities  
Borrowings14 63214 013
Trade payables and other liabilities14 26015 892
Deferred income384475
 Total Current Liabilities29 27630 380


Consolidated statement of comprehensive incomeGroupGroup
 Q4 2018Q4 2017M12 2018M12 2017
 EUR ‘000EUR ‘000EUR ‘000EUR ‘000
Net revenue34 75631 692124 261122 076
Cost of goods sold(13 626)(12 380)(49 430)(47 231)
Gross Profit21 13019 31274 83174 845
Selling expense(10 376)(11 117)(37 091)(38 125)
Administrative expense(7 251)(6 781)(24 366)(23 653)
Other operating income9999442 9462 697
Other operating expense(339)(967)(2 799)(4 427)
Share of profit of an associate2443107113
Financial income193076236
Financial expense(994)(395)(2 788)(2 299)
Profit Before Tax3 2121 06910 9169 387
Corporate income tax(359)(171)(609)(1 977)
Deferred corporate income tax13 29313 379
Other comprehensive income for the reporting period(67)(114)(150)(114)
Total comprehensive income for the reporting period2 7874 07710 15810 675
Total comprehensive income attributable to:    
The equity holders of the Parent Company2 7874 07810 15810 675
Non-controlling interests(1)
Basic and diluted earnings per share, EUR0.200.300.730.77


JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with over 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:
Inga Krūkle
Member of the Board JSC Olainfarm
Ph.: +371 28698449


Consolidated Sales Of Olainfarm In 2018 Exceed 124 Million, Marking The New Record