In August revenues increased by 14%, strong growth in Latvia and Russia

on September 17, 2019

JSC Olainfarm preliminary consolidated results for August 2019 indicate that revenues increased by 14% compared to the same month last year and reach 10.5 million euro. At the same time consolidated results for the first eight months of 2019 show that revenues reached 86.4 million euro which is an increase by 9%, compared to the eight-month period of 2018. Rapid increase in Russia compensates drop in Belarus and Ukraine. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

Consolidated sales in August show revenue increase in seven of the main markets. In Russia sales grew by 52% and by 10% in Latvia. Material change in sales were in Uzbekistan (+484%) and in Italy (+269%). Out of top 10 markets sales increased also in Kazakhstan and Tajikistan by 10% and 15%, respectively. Sales decreased in Belarus by 31% and in Ukraine by 43% but in the Netherlands by 66%.

In the eight months of 2019, the main sales markets of Olainfarm Group continued to contribute 78% of the total revenue – Latvia (29% share), Russia (28% share), Belarus (12% share) and Ukraine (8% share). Other major sales markets included Uzbekistan, Kazakhstan, the Netherlands, Germany, Tajikistan and Italy. The most rapid sales growth during this eight-month period was achieved in the Netherlands, where sales grew by 185% compared to the last year, and in Uzbekistan where sales grew by 42%. Sales in Latvia improved by 12%, in Russia by 8%, in Belarus by 5% but in Tajikistan by 27%. Amongst the largest sales outlets a decline was marked in Ukraine (-7%) and in Kazakhstan (-1%).

“August sales results continue to show a positive increase in the majority of sales markets. In August, similarly to July, sales in Latvia and Russia, as well as in other target markets, increased rapidly. As indicated, monthly sales results have had short-term fluctuations in certain markets, related to previously purchased volumes of the business partners and their planned sales,” says Lauris Macijevskis, the Chairman of JSC Olainfarm Management Board.

August 2019, consolidated sales       Sales, thous. EUR     Share in total sales    Changes to August 2018
Russia3 68435%52%
Latvia2 93328%10%
Total10 535100%14%


8 months 2019, consolidated sales     Sales, thous. EUR   Share in total sales    Changes to 8 months 2018
Latvia25 16329%12%
Russia24 13228%8%
Belarus10 73812%5%
Ukraine7 3138%-7%
Uzbekistan2 2463%42%
Kazakhstan2 1643%-1%
Netherlands1 7822%185%
Germany1 3772%13%
Tajikistan1 2061%27%
Italy1 0911%153%
Other9 18211%-2%
Total86 394100%9%

Unconsolidated sales – August and 8 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 8 million euros in August, which represents an increase by 17% compared to August, 2018. Sale of products improved in Russia (+82%), Latvia (+3%), Uzbekistan (+484%), Italy (+269%) and Tajikistan (36%). At the same time revenues declined in Belarus by 46%, in Ukraine by 43%, Kazakhstan by 6% and in the Netherlands by 66%. Germany was also among the largest markets in August.

The unconsolidated sales results for the first eight months of 2019 show that JSC Olainfarm sales reached 65.4 million euros, which represents an increase by 8% compared to the first eight months of 2018. During this reporting period, sales have increased in eight out of the ten major markets of Olainfarm – Russia (+14%), Latvia (+2%), Belarus (+2%), Uzbekistan (+42%), the Netherlands (+185%), Germany (+13%), Tajikistan (+24%) and in Italy (+61%). Revenues declined by 6% in Ukraine and by 20% in Kazakhstan.

August 2019, unconsolidated sales    Sales, thous. EUR    Share in total sales    Changes to August 2018
Russia3 35242%82%
Latvia1 36317%3%
Total7 958100%17%


Eight months 2019 unconsolidated sales    Sales, thous. EUR    Share in total sales    Changes to eight months 2018
Russia21 91434%14%
Latvia11 36717%2%
Belarus8 75113%2%
Ukraine7 19311%-6%
Uzbekistan2 2463%42%
The Netherlands1 7823%185%
Germany1 3662%13%
Kazakhstan1 1962%-20%
Tajikistan1 1532%24%
Italy1 0912%61%
Other7 34111%-6%
Total65 399100%8%

Results of subsidiaries – August and the first eight months of 2019

The pharmacy chain SIA Latvijas Aptieka sales reached 2 million euros in August 2019, which represents a 7% increase compared to August 2018. 68 pharmacies were operating during this period. SIA Silvanols sales reached 0.4 million euros in August 2019, representing a decline by 5% vs. August 2018. The combined sales of Tonus Elast and Elast Medical in August 2019 were 0.7 million euros, which is by 18% less than this time last year. Olainmed and Diamed Medical Center sales reached 0.25 million euros, while the Belarus subsidiary NPK Biotest reached 0.25 million euros in sales in August that is higher by 10% than in August last year.

During the first eight month period of 2019, SIA Latvijas Aptieka sales amounted to 17.0 million euros, demonstrating a 7% increase in comparison to the same time period last year, sales of SIA Silvanols reached 3.6 million euros which is 3% less than last year. The combined sales of Tonus Elast and Elast Medical during eight months this year totaled 6.3 million euros which is an increase by 1%. Medical Centers Diamed and Olainmed revenues were 2.1 million euros during the first eight months of this year and the Belarus company NPK Biotest sales were worth 2 million euros, improving the result of the last year by 32%.

August 2019    8 months 2019
Sales markets of Olainfarm3145
Sales markets of the Group3654
Number of pharmacies68
Sales of Latvijas Aptieka, thous. EUR2 00816 998
Sales of Medical centers, thous. EUR2512 052
Sales of NPK Biotest, thous. EUR2481 978
Sales of Tonus Elast and Elast Medical, thous. EUR7416 304
Sales of Silvanols, thous. EUR4033 572

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 eight months of 2019, 66% of annual target for unconsolidated sales and 65% 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

In August revenues increased by 14%, strong growth in Latvia and Russia