Olainfarm Sales In The First 4 Month Face 8% Increase

Olainfarm Sales In The First 4 Month Face 8% Increase

Consolidated Results April and 4 Months of 2018

Preliminary consolidated results of JSC Olainfarm for April 2018 show that Groups’ sales in April reached 11,03 million euros, which represents a slight decrease by 2% compared to sales of April 2017. The largest sales markets of the Company remain Russia, Latvia, Ukraine and Belarus. The first deliveries to Jordan were made in April.  In total Olainfarm Group products we sold to 33 markets worldwide.

The massive increase in April was achieved in Kirgizstan and Belarus where sales grew accordingly by 234% and 173%. Positive results in Belarus were reached due to effective operations of the Belarusian subsidiary NPK Biotest, which JSC Olainfarm acquired in 2016. Sales to Germany increased by 61%, sales to Ukraine also demonstrated positive dynamics in April and grew by 58%.  The major reduction, however, was experienced in Russia, where sales dropped by 41%. The Company justifies it with atypically high sales figures last April.

Sales of pharmacies of SIA Latvijas Aptieka in April 2018 reached 1,9 million euros, which represents an increase of 17% compared to the same period of 2017.  Sixty-nine pharmacies were operating during March. Sales of Silvanols in April reached 0,46 million euros which is decrease in 4%. Combined sales of Tonus Elast and its Russian sales arm Elast Medical were 0.75 million euros.  Combined sales of health care companies Diamed and Olainmed were 0.22 million euros, while sales of NPK Biotest reached 0.20 million euros.

Consolidated sales of JSC Olainfarm in four months of 2018 reached 41,5 million euros, which represents an increase by 8% compared to the same period of 2017.  The biggest sales increase during this period was achieved in Japan, where sales grew by 1690%, vs. the passive period of year 2017.   The significant sales increase was also reached in Uzbekistan, Tajikistan, Germany and Belarus. Sales in Russia faced 11% reduction versus to atypically high sales figures in the first 4 month of Y2017.   

Sales of pharmacies of SIA Latvijas aptieka in four months of 2018 were 7.8 million euros, which represents an increase by 14% compared to the same period of 2017.  Sales of SIA Silvanols in four months of 2018 were 2 million euros, which is a decrease of 4% compared to the same period of 2017.  Sales of SIA Tonus Elast in four months reached 2.8 million euros, representing increase of 12%.

Unconsolidated results April and 4 months of 2018

According to unconsolidated preliminary results, sales of AS Olainfarm in April 2018 reached 8.7 million euros, which represents a decrease by 7% compared to April 2017. Products of JSC Olainfarm were sold to 26 countries in five continents.

The largest markets remained: Russia, representing 27% of total sales volume; Ukraine -22%; Latvia- 16% and Belarus -13%. The biggest sales increase was achieved in Belarus where sales grew by 131%, Kirgizstan +263% and Tajikistan +842%. Sales in Russia faced a 46% decrease in April compared to the same period of 2017 that is rooted into atypically high sales figures last April.

Unconsolidated 4-month sales of JSC Olainfarm in 2018 reached 32,2 million euros, which represents an increase by 5% compared to the same period of 2017.  The biggest sales increase has been achieved in Japan, where sales grew by 1690%, vs. the passive period of year 2017. Sales have increased by 276% in Uzbekistan and by 175% in Tajikistan. Visible growth has been reached in all core markets except the Russia, where sales dropped by 14% vs. the same period of last year and was mostly influenced by April results.

In total during this four months period AS Olainfarm sold its products to 39 countries in five continents.  

According to sales guidance of AS Olainfarm, in 2018 the company plans to reach unconsolidated sales 96 million euros and consolidated sales of 130 million euros.  According to these preliminary results, in 4 months of 2018  34% of annual guidance for unconsolidated sales and 32% of annual guidance for consolidated sales have been met.

 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 40 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