Olaine, 2017-04-28 17:22 CEST (GLOBE NEWSWIRE) --
Group’s audited profit for the year 2016 compared to the preliminary results reported on February 28 for Q4 2016 has been improved by 1,500 thousand euros. The main reason of the profit increase is accrued selling expense reversal. Consequently this also affected retained earnings and accrued expenses captions in the statement of financial position.
Sales of the Parent company in 2016 reached 91.1 million euros, which represents an increase by 8% compared to 2015, when Parent Company’s sales were 84.7 million euros. In 2016 the Parent company made a net profit of 9.6 million euros, which is a reduction by 34% compared to 2015, when the net profit of the Parent company was 14.6 million euros.
The most rapid sales increase of the Group in 2016 was achieved in Uzbekistan, where sales grew by 65%. In 2016 Lithuania became one of the ten biggest markets of the Group, replacing Tajikistan. The biggest sales markets of the Group on 2016 were Russia, Latvia, Ukraine and Belarus.
The most rapid sales increase of the Parent company in 2016 was achieved in Uzbekistan, where sales grew by 65%. Sales to Lithuania grew by 34% and sales to Belarus and the UK, each grew by 17%. The biggest sales reduction took place in The Netherlands, where sales shrunk by 56%. In 2016 Lithuania became one of the ten biggest markets also for the Parent company, as it replaced Turkmenistan. The biggest sales markets of the Parent company in 2016 were Russia, Ukraine Latvia and Belarus.
The best sold products of the Parent company in 2016 were CNS medicines Neiromidin, Noofen and Adaptol, antibacterial preparations of Furamag and Furasol, antiarrhythmic medicine Etacizin, antituberculosis products PASA Sodium salt and antiallergic medicine Fenkarol. Share of company’s bestselling product Neiromidin in total sales of the Parent company increased from 18% to 20% in 2016.
During the reporting period, registration processes of Parent company’s products continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam.
Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Ukraine, Mongolia, Armenia, Turkmenistan and Bosnia and Herzegovina. Registration processes of several other products were launched in Turkey.
Annual meeting of shareholders of JSC Olainfarm held on June 7, 2016 approved operating plan of the Group for 2016. According to it, sales of the Group in 2016 were planned to be 100 million euros, but the net profit was expected reach 10 million euros. According to this audited report for 2015, during this period 111% of annual sales target is met and annual profit target is exceeded by 16%. At the same meeting targets for Parent company’s operations were approved, stating that Parent company’s sales target is 86 million euros, but the profit target is 9 million euros. According to these accounts, Parent company met 106% of sales target and exceeded its profit target by 7%.
| Statement of Financial Position | Group | Parent company | |||
| 31.12.2016 | 31.12.2015 | 31.12.2016 | 31.12.2015 | ||
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Intangible assets | 31 860 | 20 591 | 2 253 | 2 210 | |
| Property, plant and equipment | 40 943 | 35 579 | 35 402 | 34 047 | |
| Investment properties | 1 963 | - | - | - | |
| Financial assets | 6 514 | 4 910 | 45 322 | 22 382 | |
| TOTAL NON-CURRENT ASSETS | 81 280 | 61 080 | 82 977 | 58 639 | |
| CURRENT ASSETS | |||||
| Inventories | 24 011 | 20 990 | 17 447 | 18 979 | |
| Receivables | 36 124 | 30 487 | 32 531 | 31 178 | |
| Cash | 3 165 | 5 574 | 2 163 | 5 015 | |
| TOTAL CURRENT ASSETS | 63 300 | 57 051 | 52 141 | 55 172 | |
| TOTAL ASSETS | 144 580 | 118 131 | 135 118 | 113 811 | |
| EQUITY AND LIABILITIES | |||||
| EQUITY | |||||
| Share capital | 19 719 | 19 719 | 19 719 | 19 719 | |
| Share premium | 2 504 | 2 504 | 2 504 | 2 504 | |
| Reserves | 322 | 322 | 322 | 322 | |
| Retained earnings | 74 081 | 65 773 | 73 012 | 65 921 | |
| Non-controlling interests | 37 | 30 | - | - | |
| TOTAL EQUITY | 96 663 | 88 348 | 95 557 | 88 466 | |
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Borrowings | 18 686 | 8 560 | 17 709 | 8 051 | |
| Deferred corporate income tax | 3 025 | 1 947 | 1 278 | 635 | |
| Deferred income | 2 810 | 2 656 | 2 706 | 2 604 | |
| Other liabilities | 114 | - | 68 | - | |
| Total Non-Current Liabilities | 24 635 | 13 163 | 21 761 | 11 290 | |
| Current liabilities | |||||
| Borrowings | 7 020 | 4 258 | 6 362 | 3 593 | |
| Trade payables and other liabilities | 15 769 | 11 562 | 11 039 | 9 677 | |
| Deferred income | 493 | 800 | 399 | 785 | |
| Total Current Liabilities | 23 282 | 16 620 | 17 800 | 14 055 | |
| TOTAL LIABILITIES | 47 917 | 29 783 | 39 561 | 25 345 | |
| TOTAL EQUITY AND LIABILITIES | 144 580 | 118 131 | 135 118 | 113 811 | |
| Statement of comprehensive income | Group | Parent company | ||
| 2016 | 2015 | 2016 | 2015 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | |
| Net revenue | 110 693 | 97 392 | 91 096 | 84 746 |
| Cost of goods sold | (40 855) | (32 315) | (29 678) | (25 979) |
| Gross Profit | 69 838 | 65 077 | 61 418 | 58 767 |
| Selling expense | (31 733) | (28 202) | (25 336) | (23 742) |
| Administrative expense | (19 735) | (18 965) | (18 020) | (18 118) |
| Other operating income | 3 080 | 2 715 | 2 363 | 2 487 |
| Other operating expense | (9 766) | (1 957) | (10 675) | (1 864) |
| Share of profit of an associate | 63 | 118 | - | - |
| Income from investments in subsidiaries | - | - | 27 | 300 |
| Financial income | 3 479 | 262 | 3 355 | 261 |
| Financial expense | (307) | (1 404) | (285) | (1 352) |
| Profit Before Tax | 14 919 | 17 644 | 12 847 | 16 739 |
| Corporate income tax | (2 883) | (2 110) | (2 564) | (1 976) |
| Deferred corporate income tax | (450) | (245) | (643) | (197) |
| PROFIT FOR THE REPORTING PERIOD | 11 586 | 15 289 | 9 640 | 14 566 |
| Other comprehensive income for the reporting period | - | - | - | - |
| Total comprehensive income for the reporting period | 11 586 | 15 289 | 9 640 | 14 566 |
| Total comprehensive income attributable to: | ||||
| The equity holders of the Parent Company | 11 579 | 15 281 | 9 640 | 14 566 |
| Non-controlling interests | 7 | 8 | - | - |
| Basic and diluted earnings per share, EUR | 0.82 | 1.08 | 0.68 | 1.03 |
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 35 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
