JSC Olainfarm sales during the 1st quarter of 2013 have reached 12.6 million lats (17.9 million euro), which represents a 4% year-on-year growth. Thus, based on sales figures, Q1 2013 has been the most successful first quarter of the year in the company’s history. The biggest increases in sales during Q1 2013 were achieved in Kyrgyzstan (+78%), Belarus (+72%), Uzbekistan (+64%) and Great Britain (+51%).
“This year, we are planning to expand our operations by acquiring new pharmacies and other pharmaceuticals-related companies. The first step is our purchase of shares in Silvanols Ltd., which will allow Olainfarm to involve itself more actively in medical equipment and food supplement sub-segments. JSC Olainfarm recently received a corporate income tax exemption for approved investments in our project “Introduction of new products and improved exporting capacity”, which is a significant government-level acclaim of our work. We will continue to strengthen our positions and to develop by ensuring that announcements of Olainfarm record-breaking quarterly results become a regular occurrence,” says Valērijs Maligins, Chairman of the Board of JSC Olainfarm.
During the 1st quarter of 2013 JSC Olainfarm sales continued to increase in all of the company’s main markets, except for Ukraine, where they decreased by 71% year-on-year. However, JSC Olainfarm had already expected import difficulties in the Ukraine market and made extra shipments to the country in the 4th quarter of 2012. Major sales markets of JSC Olainfarm during Q1 2013 were Russia, Ukraine, Latvia, Belarus and the UK.
JSC Olainfarm consolidated profit and loss statement for the 1st quarter of 2013 shows that the company has made a net profit of 1.95 million lats (2.78 million euro), which is a 19% year-on-year decrease. Reduction of sales to Ukraine has made a significant impact on the company’s profitability.
During the 1st quarter of 2013 4 products have been registered in Ukraine, Turkmenistan, Russia and Belarus. These include Kapikor (Olvazol), a heart drug which can be used for strengthening the heart and cardiovascular system in acute cases of myocardial infarction or stroke. The company has also reached an agreement about the commencement of product registration process in Turkey, while work has been started on developing several new final dosage forms.
JSC Olainfarm budget and operating plan for 2013 sets targets for consolidated sales to reach 59 million lats (84 million euro) and net profit to reach 11.5 million lats (16.4 million euro). According to the unaudited report, during the 1st quarter of 2013 21% of the annual sales target and 17% of the annual profit target have been met.
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 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 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by:
Member of the Board
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