News

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