In March Olainfarm group sales increased by 22%; manufacturing and distribution processes are operating normally

on April 20, 2020

Olainfarm group’s indicative consolidated sales in March reached EUR 13.2 million, which is an increase by 22% compared to March last year. Revenues in Latvia improved by 29% year-on-year, in Ukraine sales rose by 963%, in Belarus by 1%, in the EU countries by 49%, in Caucasus countries by 126% and in other countries by 35%. Revenues in Russia and Central Asia declined by 28% and 6%, respectively. In March the Group started cooperation with one of the largest pharmaceutical distributors in Ukraine, which already demonstrates substantial results.

Despite the spread of COVID-19 to most countries in the world including Latvia, the Group has continued to operate normally with limited impact. The Group companies have taken safety measures in accordance with local regulations. Employees at JSC Olainfarm and the major subsidiaries regularly check their health condition to limit potential spread of the coronavirus among employees. Employees who can perform tasks remotely are working from home. Business trips have been canceled, face-to-face meetings have been limited whenever possible and online meetings are encouraged instead. Because of travel restrictions, the Group’s medical representatives are conducting promotional calls via video conference or by phone to stay connected with their customers.

The Group companies source raw materials from various countries and have established plans to expand the list of suppliers. At the moment, the Group has sufficient inventory for the foreseeable future, which enables it to plan production without interruptions. The manufacturing processes and product deliveries at JSC Olainfarm have not been significantly affected. More shipments of products to clients are done by trucks instead of air traffic.

During the first three months of 2020, Olainfarm group’s indicative consolidated sales amounted to EUR 31.7 million. It is by 9% 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. The increase in revenue during the three-month period was in Latvia by 11%, Belarus by 7%, the Central Asian and Caucasian regions where the sales were 25% and 103% more than a year ago, in the EU countries revenue increased by 11%. At the same time sales declined in Russia (-52%), in Ukraine (-36%) and in other countries (-3%).

“The change of direction in the sales strategy of the main markets has delivered the expected results shown by the turnover in March, exceeding the indicators of March of last year. We expect that the cooperation with drug distributors will continue to deliver the annual plan in both Russia and the Ukraine, as well as in other markets. Despite the spread of COVID-19 to most countries in the world including Latvia, the Group continues to operate normally with limited impact.  The Olainfarm Group continues to work in strict compliance with all the measures related to the control of the coronavirus. Due to state-imposed limitations, healthcare facilities of Diamed and Olainmed have been closed since the end of March. The largest Group companies continue to operate without any changes,” said Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.

March 2020, consolidated results           Sales, mil. EUR         Share in total sales         Compared to March 2019
Latvia 4.184 32% 29%
Russia 2.067 16% -28%
Ukraine 1.823 14% 963%
Central Asia 1.686 13% -6%
Belarus 1.582 12% 1%
EU countries 1.294 10% 49%
Other countries 0.303 2% 35%
Caucasian countries 0.274 2% 126%
Total 13.214 100% 22%


Three months 2020, consolidated sales          Sales, mil. EUR          Share in total sales          Changes to three months 2019
Latvia 10.858 34% 11%
Belarus 5.879 19% 7%
Russia 4.343 14% -52%
Central Asia 3.594 11% 25%
EU countries 3.122 10% 11%
Ukraine 1.829 6% -36%
Other countries 1.417 4% -3%
Caucasian countries 0.653 2% 103%
Total 31.694 100% -9%

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 March and three months

According to the preliminary unconsolidated figures, JSC Olainfarm sales reached EUR 10.4 million in March 2020, which represents an increase by 33% compared to March, 2019. Sales of products in March improved in Latvia by 67%, Ukraine by 1067%, in Central Asia by 2%, in the EU countries by 56%, in Caucasus countries by 221% and in other countries by 37%. Revenues declined in Russia by 28% and in Belarus by 2% if compared to the same months  a year ago.

During the first three months of this year JSC Olainfarm preliminary revenue declined by 12% and was EUR 23.3 million. The largest sales outlet was Latvia where the revenue climbed up by 21% compared to the three-month period a year ago, in Belarus sales were up by 4%, in Central Asia there was an increase by 32%, in the EU countries revenues increased by 10% and Caucasus countries there was growth by 89%. At the same time revenue declined in Russia by 56%, in Ukraine by 36% and in other countries by 7%.

March 2020, unconsolidated sales           Sales, mil. EUR         Share in total sales          Compared to March 2019
Latvia 2.416 23% 67%
Ukraine 1.823 17% 1067%
Russia 1.765 17% -28%
Central Asia 1.646 16% 2%
Belarus 1.223 12% -2%
EU countries 1.168 11% 56%
Other countries 0.210 2% 37%
Caucasus countries 0.188 2% 221%
Total 10.438 100% 33%


Three months 2020, unconsolidated sales          Sales, mil. EUR          Share in total sales          Changes to Three months 2019
Latvia 5.455 23% 21%
Belarus 4.807 21% 4%
Russia 3.505 15% -56%
Central Asia 3.367 14% 32%
EU countries 2.726 12% 10%
Ukraine 1.824 8% -36%
Other countries 1.201 5% -7%
Caucasian countries 0.451 2% 89%
Total 23.336 100% -12%

Results of subsidiaries in March and three months

The pharmacy chain Latvijas Aptieka sales reached EUR 2.9 million in March 2020, which represents a 37% increase compared to March, 2019. Silvanols sales reached EUR 0.8 million in March 2020, representing a growth by 33% versus March, 2019. The combined sales of Tonus Elast and Elast Medical in March 2020 were EUR 0.7 million, which is 27% less than this time last year. Olainmed and Diamed Medical Center sales reached EUR 0.24 million, while the Belarusian subsidiary NPK Biotest reached EUR 0.31 million in sales in March, which is 28% higher than in March of last year.

During the first three month period of 2020, Latvijas Aptieka sales amounted to EUR 7.5 million, demonstrating a 14% increase in comparison to the same time period last year. Sales of SIA Silvanols reached EUR 1.7 million which is 1% more than last year. The combined sales of Tonus Elast and Elast Medical during the first three months of this year totaled up to EUR 2 million, which is a decline by 8%. Medical Center Diamed and Olainmed revenue was EUR 0.8 million during the first three months of this year and the Belarusian company NPK Biotest sales were worth EUR 0.9 million, improving the result of last year by 15%.

March 2020        Three months 2020
Sales of Latvijas Aptieka, mil. EUR 2.938 7.499
Sales of Silvanols, mil. EUR 0.768 1.663
Sales of Tonus Elast and Elast Medikl, mil. EUR 0.686 1.990
Sales of Medical centers, mil. EUR 0.244 0.840
Sales of NPK Biotest, mil. EUR 0.314 0.907

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 three months of 2020, 24% of annual target for unconsolidated sales and 23% of annual target for consolidated sales have been reached.

JSC Olainfarm has reviewed announcement procedure of monthly revenue data. In the future 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 50 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

In March Olainfarm group sales increased by 22%; manufacturing and distribution processes are operating normally