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Consolidated Sales Of Olainfarm In 2018 Exceed 124 Million, Marking The New Record

on March 1, 2019

Consolidated profit and loss calculation of JSC Olainfarm for 2018 shows that with the sales worth more than 124 million euros the Group has set the new annual sales record. In 2018 the net profit of Olainfarm Group reached 10.3 million euros, which is a reduction by almost 5% compared to the net earnings of 2017. The products of the Group were sold in 54 markets worldwide.

Based upon the annual results, the Board will recommend the shareholders to decide on paying 1.4 million euros in dividends from earnings of 2018, that equals approximately 0.10 euros per share.

In 2018, compared to 2017, the sales volumes have increased by more than 2 million euros or by almost 2% and exceeded 124 million euros.  Although the Group failed to achieve the previously announced sales target of 130 million, it has set the new annual sales record.  During the last quarter, EBITDA for twelve months has grown significantly, reaching EUR 20.5 million. EBITDA profitability in the past 12 months also reached 17%. Both of these indicators are the highest since the beginning of 2016.

In 2018, the company has managed to reduce its sales costs and grow in almost all major sales markets, except for Russia, where sales fell by 5% due to previously anticipated fluctuations of the Russian ruble. On the other hand, increased presence in both Latvian and Belarusian markets has resulted into significant increase in sales in both markets. The largest sales growth of 54% was achieved in Belarus, and also in Tajikistan, where sales grew by 32%. Sales in Latvia also grew by 23%, making the home market the second largest in terms of turnover after Russia.

During the 4th quarter of 2018, compared to 4th quarter of 2017, sales of the Company increased by more than 3 million euros or by almost 10%, reaching 34.8 million euros and making this the best quarter in terms of sales in corporate history.

Since 2017, some significant changes have occurred to the sales structure of bestselling products of Olainfarm.  Remantadine and PASA were replaced by Meldonium and Memantine, while shares of Noofen and Neiromidin have become comparable.

Despite the growing number of export markets, diversification of sales markets remains one of the main challenges for Olainfarm Group. In 2018, the company also focused on conducting additional researches to ensure the presence of its products in existing sales markets and preparing to open new ones in the future.

Annual meeting of shareholders of JSC Olainfarm, convened on June 5, 2018 approved operating plan of the Group for 2018.  According to it, sales of the Group in 2018 are planned to be 130 million euros, but the net profit will reach 11.5 million euros.  According to the unaudited report of 2018, during the year 96% of annual sales target and 90% of annual profit target is met.

Condensed Consolidated Statement of Financial Position Group
    31.12.2018 31.12.2017
    EUR ‘000 EUR ‘000
       ASSETS    
NON-CURRENT ASSETS    
Intangible assets 36 619 37 034
Property, plant and equipment 43 698 41 892
Investment properties 3 492 3 526
Financial assets 985 2 609
  TOTAL NON-CURRENT ASSETS 84 794 85 061
CURRENT ASSETS    
Inventories 25 265 24 161
Receivables 34 337 34 049
Cash 2 689 3 158
  TOTAL CURRENT ASSETS 62 291 61 368
TOTAL ASSETS 147 085 146 429
     
             EQUITY AND LIABILITIES    
EQUITY    
Share capital 19 719 19 719
Share premium 2 504 2 504
Other components of equity (224) (74)
Retained earnings 82 656 75 675
  TOTAL EQUITY 104 655 97 824
LIABILITIES    
Non-current liabilities    
Borrowings 10 398 15 878
Deferred income 2 756 2 347
  Total Non-Current Liabilities 13 154 18 225
Current liabilities    
Borrowings 14 632 14 013
Trade payables and other liabilities 14 260 15 892
Deferred income 384 475
  Total Current Liabilities 29 276 30 380
  TOTAL LIABILITIES 42 430 48 605
TOTAL EQUITY AND LIABILITIES 147 085 146 429

 

Consolidated statement of comprehensive income Group Group
  Q4 2018 Q4 2017 M12 2018 M12 2017
  EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
Net revenue 34 756 31 692 124 261 122 076
Cost of goods sold (13 626) (12 380) (49 430) (47 231)
Gross Profit 21 130 19 312 74 831 74 845
Selling expense (10 376) (11 117) (37 091) (38 125)
Administrative expense (7 251) (6 781) (24 366) (23 653)
Other operating income 999 944 2 946 2 697
Other operating expense (339) (967) (2 799) (4 427)
Share of profit of an associate 24 43 107 113
Financial income 19 30 76 236
Financial expense (994) (395) (2 788) (2 299)
Profit Before Tax 3 212 1 069 10 916 9 387
Corporate income tax (359) (171) (609) (1 977)
Deferred corporate income tax 1 3 293 1 3 379
PROFIT FOR THE REPORTING PERIOD 2 854 4 191 10 308 10 789
Other comprehensive income for the reporting period (67) (114) (150) (114)
Total comprehensive income for the reporting period 2 787 4 077 10 158 10 675
Total comprehensive income attributable to:        
The equity holders of the Parent Company 2 787 4 078 10 158 10 675
Non-controlling interests (1)
         
Basic and diluted earnings per share, EUR 0.20 0.30 0.73 0.77

 

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with over 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.

Information prepared by:
Inga Krūkle
Member of the Board JSC Olainfarm
Ph.: +371 28698449
inga.krukle@olainfarm.com

 

Consolidated Sales Of Olainfarm In 2018 Exceed 124 Million, Marking The New Record