Olainfarm Group's turnover in the first quarter exceeds 30 million euros. Noofen becomes the sales leader
Consolidated sales of JSC Olainfarm in first quarter of 2018 reached 30,8 million euros, which represents an increase by 8% compared to the first quarter of 2017, and this is the best quarterly turnover figure for the Group's past performance. Net profit in the 1st quarter was 3.1 million euro, which is 15% less than in the same period of 2017. The company is explaining the profit reduction with unfavorable volatility of the Russian ruble exchange rate at the beginning of the year.
The largest product markets in this period were Latvia, Russia, Belarus, Ukraine, and also Kazakhstan.
During the 1 st quarter of 2018 sales of JSC Olainfarm demonstrated growth in all its major sales markets. The biggest increase was reached in Latvia and Belarus, where sales increased by 1.4 million euros in each of the markets. Good performance was demonstrated also in Uzbekistan where sales grew by 0.57 million and in Russia – increase by 0.51 million.
In the 1 st quarter of 2018, Olainfarm has undergone significant changes in the structure of the company's most demanded products. The prescription medicine for the health of the nervous system, Noofen, has become the most popular drug, which accounted for 18%, while Neiromidin, the leader of Y2017, is only the third amongst the most demanded products this year. Meldonium and Memantine replaced PASS and Remantadine in the list of best- sellers.
Annual meeting of shareholders of JSC Olainfarm, which will be convened on June 5, 2018, is proposed to approve the operating plan of the Group for 2018. According to it, sales of the Group in 2018 are planned to be 130 million euros, but the net profit will reach 11.5 million euros. According to this unaudited report for 1st quarter of 2018, during the first three months the annual sales plan is executed by 23.7%, but the annual profit plan is executed by 27.1%.
During the first quarter of 2018, nearly 160 thousand of JSC Olainfarm shares of were sold for more than 1.3 million euros at the Nasdaq Riga Stock Exchange. Compared to the first quarter of last year both, the number of traded shares and turnover, has more than tripled.
| Condensed Consolidated Statement of Financial Position | Group | ||
| 31.03.2018 | 31.12.2017 | ||
| EUR '000 | EUR '000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 37 011 | 37 034 | |
| Property, plant and equipment | 42 153 | 41 892 | |
| Investment properties | 3 567 | 3 526 | |
| Financial assets | 1 016 | 2 609 | |
| TOTAL NON-CURRENT ASSETS | 83 747 | 85 061 | |
| CURRENT ASSETS | |||
| Inventories | 25 036 | 24 161 | |
| Receivables | 33 908 | 34 049 | |
| Cash | 4 417 | 3 158 | |
| TOTAL CURRENT ASSETS | 63 361 | 61 368 | |
| TOTAL ASSETS | 147 108 | 146 429 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 19 719 | 19 719 | |
| Share premium | 2 504 | 2 504 | |
| Other components of equity | (79) | (74) | |
| Retained earnings | 78 420 | 75 675 | |
| Non-controlling interests | - | - | |
| TOTAL EQUITY | 100 564 | 97 824 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 14 933 | 15 878 | |
| Deferred corporate income tax | - | - | |
| Deferred income | 2 621 | 2 347 | |
| Total Non-Current Liabilities | 17 554 | 18 225 | |
| Current liabilities | |||
| Borrowings | 12 817 | 14 013 | |
| Trade payables and other liabilities | 15 714 | 15 892 | |
| Deferred income | 459 | 475 | |
| Total Current Liabilities | 28 990 | 30 380 | |
| TOTAL LIABILITIES | 46 544 | 48 605 | |
| TOTAL EQUITY AND LIABILITIES | 147 108 | 146 429 | |
| Consolidated statement of comprehensive income | Group | |
| Q1 2018 | Q1 2017 | |
| EUR '000 | EUR '000 | |
| Net revenue | 30 789 | 28 571 |
| Cost of goods sold | (12 778) | (11 463) |
| Gross Profit | 18 011 | 17 108 |
| Selling expense | (8 671) | (8 025) |
| Administrative expense | (5 641) | (5 414) |
| Other operating income | 718 | 449 |
| Other operating expense | (711) | (743) |
| Share of profit of an associate | 68 | 32 |
| Income from investments in subsidiaries | - | - |
| Financial income | 20 | 1 158 |
| Financial expense | (590) | (102) |
| Profit Before Tax | 3 204 | 4 463 |
| Corporate income tax | (90) | (839) |
| Deferred corporate income tax | - | 54 |
| PROFIT FOR THE REPORTING PERIOD | 3 114 | 3 678 |
| Other comprehensive loss for the reporting period | (5) | - |
| Total comprehensive income for the reporting period | 3 109 | 3 678 |
| Total comprehensive income attributable to: | ||
| The equity holders of the Parent Company | 3 109 | 3 673 |
| Non-controlling interests | - | 5 |
| Basic and diluted earnings per share, EUR | 0.22 | 0.26 |
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 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
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