Olainfarm Group sales in April increase by 45%

Consolidated sales – April and 4 months

Preliminary consolidated results of JSC Olainfarm for April 2019, show that the Group has made sales worth 12.6 million euros, which represents an increase by 45% compared to April 2019. Preliminary results for first four months of 2019 demonstrate 14% sales increase, compared to the four months period of 2018, reaching 47.3 million euros.  Products of Olainfarm Group during this period were sold in 50 markets worldwide.

According to consolidated sales numbers for April, four major sales markets of the Group remain the same : Russia, with 111% sales increase, Latvia, where the sales jumped by 113%, Ukraine with the sales decrease of 38%, and Belarus with the slight 2% decrease.   Amongst the ten largest sales markets, the sales have been shrinking also in Lithuania (by 22%). All other major outlets demonstrated sales growth in April, with substantial deliveries to the Netherlands, Kazakhstan and Germany.  

In the four months of 2019, the main sales markets of Olainfarm Group remained the same: Russia (30% share), Latvia (27% share), Belarus (14% share) and Ukraine (9% share). Other major sales markets included the Netherlands, Uzbekistan, Kazakhstan, Germany, Tajikistan and Lithuania. The most rapid sales growth during this four-month period was achieved in the Netherlands, where sales grew by 702% compared to the last year, and in Uzbekistan where sale grew by 64%. Russia and Belarus have demonstrated 27% and 12% sales increase in the four months, respectably. Amongst the largest sales outlets decline has been marked in Ukraine (-5%), Kazakhstan (-14%), Germany (-19%) and Lithuania (-34%).

“JSC Olainfarm four-month sales show good results, confirming the stable growth of the company. The key to the company’s success is effective manufacturing processes, knowledgeable and professional employees, as well as stable market outlets and cooperation partners. Currently, one of the most important tasks is the further development of company’s activities. We are working on a new medium-term strategy for the Group for 3-5 years, which will help to continue the successful growth of the company. This will allow us to maintain stable positions, both in existing markets and to acquire new ones,” emphasizes Lauris Macijevskis, Chairman of the Board at JSC Olainfarm.

April 2019, consolidated sales   Sales, thsnd. EUR Share in total sales Changes to April 2018
Russia 4 910 39% 111%
Latvia 3 127 25% 131%
Ukraine 1 185 9% -38%
Belarus 1 114 9% -2%
The Netherlands 585 5% 5818%
Kazakhstan 323 3% 33%
Germany 192 2% 17%
Uzbekistan 173 1%
Armenia 140 1% 3672%
Lithuania 128 1% -22%
Other 728 6% -5%
Total 12 605 100% 45%

4 months 2019, consolidated sales Sales, thsnd. EUR Share in total sales Changes to 4 months 2019
Russia 13 985 30% 27%
Latvia 12 913 27% 11%
Belarus 6 618 14% 12%
Ukraine 4 037 9% -5%
The Netherlands 1 363 3% 702%
Uzbekistan 1 124 2% 64%
Kazakhstan 937 2% -14%
Germany 729 2% -12%
Tajikistan 521 1% 17%
Lithuania 512 1% -32%
Other 4 556 10% 10%
Kopā 47 294 100% 14%

Unconsolidated sales – April and 4 months

According to preliminary unconsolidated numbers, sales of JSC Olainfarm in April reached 10.0 million euros, which represents an increase by 15% compared to April  2018.  Result was positively influenced by the sales increase in Russia (by 102%), the Netherlands (by 6047%), Kirgizstan (by 611%) and India (by 8559%). Sales shrunk in Ukraine (by 40%) and in Belarus (by 24%).

Unconsolidated sales results for four months 2019 show that sales of JSC Olainfarm reached 36.6 million euros, which represents and increase by 14% compared to first 4 month 2018. During the reporting period, sales have increased in all major sales markets of Olainfarm, except Ukraine, where sales shrunk by 11%, Uzbekistan (decrease by 23%) and Tajikistan (decrease by 34%).   In this 4-months period, sales of Olainfarm to the Netherlands grew by 64%, but sales to Kazakhstan and Lithuania accordingly by 13% and 55%.

April 2019, unconsolidated sales Sales, thsnd. EUR Share in total sales Changes to April 2018
Russia 4 699 47% 102%
Latvia 1 402 14% 4%
Ukraine 1 149 11% -40%
Belarus 860 9% -24%
The Netherlands 585 6% 6047%
Germany 191 2% 16%
Uzbekistan 173 2%
Kazakhstan 171 2% -29%
India 122 1% 8559%
Kyrgyzstan 116 1% -30%
Other 527 5% -32%
Total 9 996 100% 15%

Four months 2019 unconsolidated sales Sales, thsnd. EUR Share in total sales Changes to four months 2018
Russia 12 591 34% 30%
Latvia 5 919 16% 6%
Belarus 5 466 15% 9%
Ukraine 3 743 10% -11%
The Netherlands 1 582 3% 64%
Uzbekistan 1 124 2% -23%
Kazakhstan 598 1% 13%
Tajikistan 503 1% -24%
Lithuania 450 1% 55%
Turkmenistan 354 12% 1263%
Other 4 233 12% -5%
Total 36 563 100% 14%

Results of Daughter companies – April and four months of 2019

Sales of pharmacy chain of SIA Latvijas Aptieka in April 2019 was close to 2.2 million euros, which represents 11% increase compared to April 2018.  During this period 68 pharmacies operated. Sales of SIA Silvanols in April reached 0.47 million euros, representing increase by 3% vs. the April 2018. Combined sales of Tonus Elast and Elast Medical in April 2019 were 0.8 million euros, which is increase by 2%. Medical centers of Olainmed and Diamed made sales worth 0.28 million euros, while Belarus daughter company NPK Biotest made sales of 0.25 million euros.

During four month of 2019, SIA Latvijas Aptieka sales amounted to 8.7 million euros, demonstrating 12% increase over the same period last year, sales of SIA Silvanols reached 2.1 million euros (an increase by 6%). Combined sales of Tonus Elast and Elast Medical also grew by 6% to 2.9 million euros. Medical centers and NPK Biotest both sold services and products worth over 1.0 million EUR during four months 2019.

  April 2019 4 months 2019
Sales markets of Olainfarm 25 42
Sales markets of the Group 35 50
Number of pharmacies 68  
Sales of Latvijas Aptieka, thsnd. 2 156 8 762
Sales of Medical centers, thsnd. 283 1 022
Sales of NPK Biotest, thsnd. 254 1 045
Sales of Tonus Elast and Elast Medical, thsnd. 765 2 933
Sales of Silvanols, thsnd. 474 2 115

According to the budget of JSC Olainfarm, unconsolidated sales of the company in 2019 are planned to reach 99 million euros, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first 4 months 2019, 37% of annual target for unconsolidated sales and 35% of annual target for consolidated sales are reached.

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 of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Information prepared by:
       
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com