Corrected - Olainfarm Group sales in April increase by 14%
This is corrected release of previous announcement. Correction relate to comparison to 2018 figures in consolidated sales in April.
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 14% compared to April 2018. The same increase demonstrate preliminary results for first four months of 2019, 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 77% sales increase, Latvia, where the sales jumped by 10%, Ukraine with the sales decrease of 38%, and Belarus with the 17% decrease. Amongst the ten largest sales markets, the sales have been shrinking also in Lithuania (by 27%). 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% | 77% |
| Latvia | 3 127 | 25% | 10% |
| Ukraine | 1 185 | 9% | -38% |
| Belarus | 1 114 | 9% | -17% |
| The Netherlands | 585 | 5% | 5818% |
| Kazakhstan | 323 | 3% | 33% |
| Germany | 192 | 2% | 16% |
| Uzbekistan | 173 | 1% | - |
| Armenia | 140 | 1% | 3672% |
| Lithuania | 128 | 1% | -27% |
| Other | 728 | 6% | -22% |
| Total | 12 605 | 100% | 14% |
| 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% |
| Total | 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.:
