JSC Olainfarm Concludes Year 2017 With The Highest Turnover Of The Company's History And Expands Globally

April 27, 2018

JSC Olainfarm Concludes Year 2017 With The Highest Turnover Of The Company's History And Expands Globally

Audited consolidated financial statement of JSC Olainfarm for 2017 shows that the sales of the Group exceeded 122 million euros.  This represents an increase by 10% compared to sales of 2016 and is by far the largest turnover in the company's history. The profit of Olainfarm Group last year reached 10.8 million euros.

The company has successfully expanded its export by adding new markets and selling its products now to 66 countries worldwide. Russia, Latvia, Ukraine and Belarus remain the largest product markets.

Together with the consolidated financial data, JSC Olainfarm this year also submitted for the first time a non-financial report, which informs about the company's environmental and social responsibility, quality management and corporate governance practice. The non-financial report is based on the Nasdaq ESG guidelines for the Nordic and Baltic markets.

Turnover growth was mostly ensured by the increase in sales of subsidiaries, as the sale of the Parent company in 2017 actually remained at the level of year 2016, increasing by a half percentage point.

The company has added 4 new markets to its product geography in 2017 and commenced sales in Argentina, Colombia, Hong Kong and Romania. In total, the Group exported its products to more than 60 countries worldwide.

In 2017, the share of Russia in total sales increased from 34% to 35%, while due to the changing economic situation, the sales in Ukraine decreased from 13% to 10%. Decline in sales volumes has been also experienced in Great Britain, while significant growth by 103% was reached in Germany, the Netherlands (+ 57%) and Belarus (+ 21%).

In 2017 JSC Olainfarm has successfully completed the registration of its products in Latvia, Kyrgyzstan, Armenia, Azerbaijan and Moldova. Registration processes are still ongoing in Nepal, Armenia, Turkey, Myanmar, Cameroon and Vietnam.

The best sold products of the Parent company in 2017 were CNS medicines Neiromidin, Noofen and Adaptol, antibacterial preparations of Furamag and Furasol, antiarrhythmic medicine Etacizin, antituberculosis products PASS Sodium salt and antiallergic medicine Fenkarol.  

A slight change over the year has occurred in the proportion of the most sold products. The proportion of soluble Furagin products has increased from 13% to 15%, the share of Etacizin has increased from 8% to 10%, while the proportion of PASS Sodium Salt has decreased from 8% to 5%. The list of 10 the most-selling pharmaceutical products has remained unchanged.

The Annual meeting of shareholders of JSC Olainfarm on June 1, 2017 approved operating plan of the Group for 2017. According to it, sales of the Group in 2017 were planned to be 127 million euros, the parent company's turnover was expected to reach 96 million euros, while net profit - 15.5 million euros. Taking into account the unsatisfactory profitability in the third quarter, the company's board reviewed its 2017 earnings outlook, stating that the expected 2017 consolidated and non-consolidated profit is 9 million euros with potential to increase it to 10 million euros. According to the financial results of the consolidated financial statements, the Group's annual sales plan is executed at 96%, while the revised Group's annual profit plan is overflowing by 8%.  The Parent company’s sales target is executed at 95%, while the profit plan is fulfilled by 93%.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with 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 50  countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Information prepared by:
        
         Salvis Lapins
         JSC Olainfarm
         Member of the Management Board
         Rupnicu iela 5, Olaine, Latvia, LV 2114
         Phone: +371 6 7013 717
         Fax: +371 6 7013 777
         E-mail: Salvis.Lapins@olainfarm.lv

Attachments

• OlainfarmZinojums_ENG
• Olainfarm_2017_Consolidated and Parent FS_ENG