Profit of JSC Olainfarm during the first quarter of this year has reached 0.7 million lats (1 million euros), but the sales exceed 6.1 million lats (8.6 million euros). For Olainfarm this has been the best ever beginning of the year (first quarter) and it can be explained with significant increase in exports, today 95% of company’s sales are made abroad. In some export markets the sales increase exceeds 100%, but in Uzbekistan Olainfarm’s sales have grown even by 1500% compared to the first quarter of 2009.
“Because of work we did for product promotion, introduction and for entering new markets, the first quarter of 2010 has been historically best beginning of the year for Olainfarm’s financials. We are particularly glad to be performing so well in the countries of Central Asia: Uzbekistan, Kyrgyzstan, Kazakhstan and Tajikistan. Sales to these countries have grown particularly strongly and this gives me the reason to say that Olainfarm now has caught the wave of growth”, says Valerijs Maligins, Chairman of the Board of Olainfarm.
During the first quarter of 2010 sales of Olainfarm have grown by about 10%, but profit by 50% compared to the first quarter of 2009.
Sales to some export markets have been growing particularly strongly in the first three months of 2010. Some untypical sales markets, like the UK and Australia have appeared among Olainfarm’s top 10 countries during this period. The biggest sales growth was experienced in Uzbekistan, where the sales grew very considerably – by 1 457%. Kyrgyzstan, despite political unrest in this country, has shown the increase by 192%, Kazakhstan by 117%, Tajikistan by 60%, Azerbaijan by 25%, Russia by 15%, Belarus by 12%, and Ukraine by 10%. This resulted in Belarus becoming the third biggest market for the Company (after Russia and Ukraine) and exports increasing to 95% of the total sales.
During the 1st quarter of 2010 7 registration cases have been finished, including registration of company’s new product Midolat® in Latvia, registration of ampouled form of Vazonat® in Ukraine and registration of 5 products in Albania. This market is completely new for the Company and the first shipments to this market are planned for the nearest months. Also several registration files have been submitted to other markets that are untypical for the company, including Indonesia and Serbia. During the
reporting period pilot tests of R-Fenotropil have also been successfully completed and the work has been launched to identify the optimal drug form for this molecule.
Annual General Meeting of Shareholders of Olainfarm held on April 29, 2010 approved the operating plan of the company. According to it, the forecast sales of Olainfarm for 2010 are 24.5 million lats (34.9 million Euro), but the net profit is forecast at 2.7 million lats (3.8 million Euro). Sales of the Concern during the first quarter of 2010 were 24% of the annual target, while the net profit was 26% of it. Therefore, during the first quarter the company has been rather precisely following its annual forecast.
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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