Audited consolidated revenues of JSC Olainfarm for 2018 exceeded 124 million euros. This represents an increase by 2% compared to sales of 2017 and is the new record in the company’s history. The profit before tax of Olainfarm Group last year reached 11.4 million euros, which is 21% more than a year before.
Olainfarm Group sold its products in 54 countries. Besides smaller (by 10% or by 4.0 million euros) sales to Russia, all the other main markets demonstrated sales increases – Belarus (+52%), Tajikistan (+32%), Latvia (+23%), making the home market the second largest in terms of turnover after Russia. Major sales markets of the Group in 2018 were Russia, Latvia, Belarus and Ukraine reaching 79% of total sales.
During the previous year, Olainfarm enhanced the product portfolios in already existing export markets as well as started the sale of chlorobutanol in China, and started export to new markets such as Portugal, Slovakia, Jordan, Bangladesh. Meldonium and Memantine became one of the Top 10 selling products, while shares of the most revenue generating products Noofen and Neiromidin were balanced.
Last year Olainfarm Group continued investments in intangible assets and property, plant and equipment. In total, almost 8 million euros were invested, which is by 1.1 million or 16% more than a year ago.
In 2018 Olainfarm paid close to 3 million euros or 0.21 euros per share in dividends from the net profit of 2017. Basing upon the results reflected in this annual report and upon the plans of the Group for 2019, the Management Board recommended the shareholders to decide on paying 1.4 million euros in dividends from earnings of 2018 or 0.10 euros per share.
During 2018, new registration processes for the Parent Company’s products were completed in Azerbaijan and Mongolia. Registration of two medicines produced by NPK Biotest in Belarus has also been completed. Registration processes are still ongoing in Turkey, Zimbabwe and Zambia.
The Parent Company by the end of 2018 completed four EU co-financed research projects in cooperation with Competence Centre of Pharmaceutical, Biomedical and Medical Technology: Drug safety and toxicokinetic study; Research of natural substances for development of new cosmetic product line; Development of a new anti-tuberculosis final dosage form; Development of new manufacturing technology for the racemic derivative of the Hinuclidine.
The Parent Company also continued implementation of EU co-financed project Experimental Technology Implementation for New Products Manufacturing in JSC Olainfarm with planned project completion in August, 2019.
Although the overall number of sales markets is increasing and sales diversity is improving, achieving even greater variety in sales geography, diversification of the markets remains one of the main challenges for the Group. One of priorities in 2019 and further years is to conduct additional clinical and preclinical research of top products not only to secure the presence of existing products in existing markets, but also to make accessibility to other markets easies in future. Since this research program is rather sizeable, it will remain among company’s priorities for the next two years.