Olainfarm Group sales in May increase by 20%

on June 14, 2019

Consolidated sales – May and 5 months

Preliminary consolidated results of JSC Olainfarm for May 2019, show that the Group has made sales worth 10.4 million euros, which represents an increase by 20% compared to May 2018. Preliminary results for the first five months of 2019 demonstrate an increase by 15%, compared to the five months period of 2018, reaching 57.7 million euros. Products of Olainfarm Group during this period were sold in 50 markets worldwide.

According to consolidated sales numbers for May, four major sales markets of the Group remain the same: Latvia, where sales increased by 21% compared to May last year, Russia, with 15% sales increase in the same period, Ukraine with the sales increase by 15%, and Belarus with the 1% decrease. The sales have been increasing amongst the ten largest markets in May, with substantial deliveries to Uzbekistan, Kazakhstan and Tajikistan. Georgia was also one of the top markets in May, deliveries there take place several times a year.

In the five months of 2019, the main sales markets of Olainfarm Group remained the same: Latvia and Russia (each with 28% share), Belarus (13% share) and Ukraine (9% share). Other major sales markets included the Netherlands, Uzbekistan, Kazakhstan, Germany, Tajikistan and Lithuania. The most rapid sales growth during this five-month period was achieved in the Netherlands, where sales grew by 669% compared to the last year, and in Uzbekistan where sale grew by 64%. Russia and Belarus have demonstrated 26% and 9% sales increase in the five months, respectably. Amongst the largest sales outlets decline has been marked in Ukraine (-1%), Kazakhstan (-4%), Germany (-3%) and Lithuania (-34%).

“Olainfarm Group has picked up its development speed in May, showing positive dynamics in almost all major sales outlets. In addition, the sales volume has grown for both of the biggest subsidiaries SIA “Latvijas aptieka” and SIA “Silvanols”. In order for to further its development to the next level, it is essential for the Company to keep increasing the sales volumes, as well as broadening the geography of trade ,” emphasizes Lauris Macijevskis, Chairman of the Board at JSC Olainfarm.

Unconsolidated sales – May and 5 months

According to preliminary unconsolidated numbers, sales of JSC Olainfarm in May reached 7.8 million euros, which represents an increase by 25% compared to May  2018. Result was positively influenced by the sales increase in Russia (by 31%), Ukraine (by 22%), Uzbekistan (by 63%), Germany (by 57%), Kazakhstan (by 43%) and Latvia (by 11%). Sales shrunk in Belarus (by 8%).

Unconsolidated sales results for five months 2019 show that sales of JSC Olainfarm reached 44.3 million euros, which represents an increase by 16% compared to first 5 month 2018. During the reporting period, sales have increased in all major sales markets of Olainfarm, except Ukraine, where sales shrunk by 5%, Kazakhstan (decrease by 23%) and Lithuania (decrease by 29%). In this 5-months period, sales of Olainfarm to Russia grew by 30%, the Netherlands grew by 1034%, sales to Uzbekistan increased by 64%.

Results of subsidiaries – May and five months of 2019

Sales of pharmacy chain of SIA Latvijas Aptieka in May 2019 reached  2.1 million euros, which represents 9% increase compared to May 2018. During this period 68 pharmacies operated. Sales of green pharmacy company SIA Silvanols in May reached 0.4 million euros, representing increase by 3% vs. May 2018. Combined sales of Tonus Elast and Elast Medical in May 2019 were 0.8 million euros, which is decrease by 8% compared to the same period last year. Medical centers of Olainmed and Diamed made sales worth 0.28 million euros, while Belarus daughter company NPK Biotest made sales of 0.2 million euros. 

During five month of 2019, SIA Latvijas Aptieka sales amounted to 10.9 million euros, demonstrating 11% increase over the same period last year, sales of SIA Silvanols reached 2.5 million euros remaining close to figures of the last year. Combined sales of Tonus Elast and Elast Medical was 3.7 million euros that is approximately the same as the last year. Medical centers Diamed and Olainmed revenues were 1.3 million euros during five months this year and Belarus’ company NPK Biotest sales were worth 1.2 million EUR, improving last year’s result.

According to the budget of JSC Olainfarm, unconsolidated sales of the company in 2019 are planned to reach 99 million euros, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first 5 months 2019, 45% of annual target for unconsolidated sales and 43% of the annual target for consolidated sales are reached.

Additional information please find in company announcement at Nasdaq Baltic.

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.

Olainfarm Group sales in May increase by 20%