Unaudited Consolidated Income Statement of AS Olainfarm for first six months of 2018 shows that the sales of the Group have reached 61.8 million euros, which represents a slight decrease of 1% compared to the same period of 2017. The net profit of 6 months was 5.78 million euros, which represents an increase by 1% compared to the first half of 2017. The major sales markets of AS Olainfarm during this period remained Russia, Latvia, Belarus and Ukraine. The company's products in the first half of the year were sold in 50 markets worldwide.
In the first half of the year, the Group’s sales volumes continued to increase in all of its major markets, with the exception of Russia and Kazakhstan, which recorded a 5% drop. The significant increase in sales volumes (+ 26%) was achieved in Belarus. In Uzbekistan, sales increased by 38%, the growth was also noted in Latvia and Ukraine. The company's main sales markets in the first half of the year remained unchanged.
The 1% reduction in sales compared to the first half of 2017 was influenced by high sales of anti-tuberculosis "PASS sodium salt" to the WHO last year. Although in the second quarter of 2018 the sales volume was slightly lower, in terms of profitability, the Group achieved improvements in comparison with the corresponding period of the previous year.
Two best selling Olainfarm products during this period were CNS medicines Neiromidin and Noofen. The share of soluble furan products has slightly increased, as did the proportion of "Adaptol".
During the reporting period, registration processes of several Olainfarm products to be produced in Belorussia by subsidiary NPK Biotest continued. In case of successful outcome, it would further help The Group to strengthen its position in Belorussian market.
The Annual meeting of shareholders of JSC Olainfarm convened on June 5, 2018 approved operating plan of the Group for 2018. According to it, sales of the Group in 2018 are planned in the amount of 130 million euros, but the net profit will reach 11.5 million euros. According to this unaudited report for the first half of 2018, during the first six months 47.5% of annual sales target and 50% of annual profit target is met.
| Condensed Consolidated Statement of Financial Position | Group | ||
| 30.06.2018 | 31.12.2017 | ||
| EUR '000 | EUR '000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 37 068 | 37 034 | |
| Property, plant and equipment | 42 772 | 41 892 | |
| Investment properties | 3 510 | 3 526 | |
| Financial assets | 1 034 | 2 609 | |
| TOTAL NON-CURRENT ASSETS | 84 384 | 85 061 | |
| CURRENT ASSETS | |||
| Inventories | 25 774 | 24 161 | |
| Receivables | 36 221 | 34 049 | |
| Cash | 2 583 | 3 158 | |
| TOTAL CURRENT ASSETS | 64 578 | 61 368 | |
| TOTAL ASSETS | 148 962 | 146 429 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 19 719 | 19 719 | |
| Share premium | 2 504 | 2 504 | |
| Other components of equity | (38) | (74) | |
| Retained earnings | 78 134 | 75 675 | |
| Non-controlling interests | - | - | |
| TOTAL EQUITY | 100 319 | 97 824 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 14 999 | 15 878 | |
| Deferred corporate income tax | - | - | |
| Deferred income | 2 522 | 2 347 | |
| Total Non-Current Liabilities | 17 521 | 18 225 | |
| Current liabilities | |||
| Borrowings | 11 503 | 14 013 | |
| Trade payables and other liabilities | 16 221 | 15 892 | |
| Dividends payable | 2 958 | - | |
| Deferred income | 440 | 475 | |
| Total Current Liabilities | 31 122 | 30 380 | |
| TOTAL LIABILITIES | 48 643 | 48 605 | |
| TOTAL EQUITY AND LIABILITIES | 148 962 | 146 429 | |
| Consolidated statement of comprehensive income | Group | Group | ||
| Q2 2018 | Q2 2017 | M6 2018 | M6 2017 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | |
| Net revenue | 31 055 | 34 148 | 61 844 | 62 719 |
| Cost of goods sold | (12 117) | (12 467) | (24 895) | (23 930) |
| Gross Profit | 18 938 | 21 681 | 36 949 | 38 789 |
| Selling expense | (9 510) | (10 606) | (18 181) | (18 631) |
| Administrative expense | (5 790) | (6 035) | (11 431) | (11 449) |
| Other operating income | 687 | 572 | 1 405 | 1 021 |
| Other operating expense | (1 093) | (855) | (1 804) | (1 598) |
| Share of profit of an associate | 7 | 28 | 75 | 60 |
| Income from investments in subsidiaries | - | - | - | - |
| Financial income | 19 | 79 | 39 | 156 |
| Financial expense | (501) | (2 319) | (1 091) | (1 340) |
| Profit Before Tax | 2 757 | 2 545 | 5 961 | 7 008 |
| Corporate income tax | (87) | (569) | (177) | (1 408) |
| Deferred corporate income tax | 2 | 49 | 2 | 103 |
| PROFIT FOR THE REPORTING PERIOD | 2 672 | 2 025 | 5 786 | 5 703 |
| Other comprehensive income for the reporting period | 41 | - | 36 | - |
| Total comprehensive income for the reporting period | 2 713 | 2 025 | 5 822 | 5 703 |
| Total comprehensive income attributable to: | ||||
| The equity holders of the Parent Company | 2 713 | 2 028 | 5 822 | 5 701 |
| Non-controlling interests | - | (3) | - | 2 |
| Basic and diluted earnings per share, EUR | 0.19 | 0.14 | 0.41 | 0.40 |
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 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 60 countries worldwide, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by: Lauris Macijevskis
JSC Olainfarm Member of the Management Board Rupnicu iela 5, Olaine, Latvia, LV 2114 Phone: +371 29112225 Email: lauris.macijevskis@olainfarm.lv
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