Olainfarm
Half Year financial report

“OlainFarm” Sets Another Sales and Profits Record

OlainFarm's unaudited profit and loss statement for the first half of 2013 shows that the company had a turnover of 24.3 million lats (34.6 million euros). It is 7% more than in the same period last year. Consequently, the first half of 2013 is the most successful in terms of turnover of “OlainFarm” history.

Olaine 30.08.2013, 2013-08-30 19:01 CEST -- "In the first half of the year “OlainFarm” has managed to achieve yet another sales record. We plan to retain this acceleration and increase it, because the seasonality affects the pharmaceutical industry in a way that the second half of the year is more successful. Strategically we will continue to develop in the same direction - introduce new products, will acquire and strengthen our presence in the pharmaceutical markets. This will be achieved by closer co-operation with other manufacturers for product distribution in the CIS and other countries. Simultaneously we are expanding the "Latvijas aptieka” network and we are actively engaging in medical device and food supplements sub segment that is possible after “OlainFarm” acquired the stocks of  “Silvanols”," says Valerijs Maligins, Chairman of OlainFarm’s Board.

“OlainFarm” profit after tax during this period was 3.63 million lats (5.16 million euros). Particularly successful and thus also the most profitable 2nd quarter in company’s history has been the 2nd quarter of 2013, in which the net profit reached 1.68 million lats (2.39 million euros), which is an increase by almost 30% compared to the same period last year.

In the first half of 2013 there have been 18 completed registrations of “OlainFarm” products in 7 different countries, as well as started the registration processes in Turkey and Mongolia. The work also continues on a number of new drug form developments including clinical studies of injectible form of Kapikor (Olvazol).

“OlainFarm” in May 2013, received a discount of 5,21 million lats to the corporate income tax (CIT) for long term investments programme.

In the first half of 2013 “OlainFarm” became the main stockholder in the third biggest Latvian pharmaceutical company “Silvanols” by acquiring 70,88% stock.

Sales volumes continued to grow in all key business markets, except Ukraine, where it fell by 63% compared to the first half of 2012. This is due to the fact that AS "OlainFarm" overshipped products to Ukraine in the 4th quarter of 2012, resulting in sales to Ukraine in 2013 being smaller than usual. The most rapid growth in the first half of 2013 was achieved in The Netherlands where sales increased by 1982%. In Canada, it has almost tripled, while in Belarus sales increased by 33% Latvia by 32% and Russia by 26%. “OlainFarm’s” biggest markets in the first half of 2013 were Russia, Belarus, Latvia, Ukraine and the United Kingdom.

Annual meeting of shareholders of AS “OlainFarm” held on April 29, 2013 approved operating plan of the Concern.  According to it, sales of the Concern in 2013 are planned to be 59 million lats  (84 million euros), but the net profit will reach 11,5 million lats (16,4 million euros).  According to this unaudited report for 2 quarters of 2013, 41% of annual sales plan and 32% of annual profit target have been achieved.

AS OlainFarm is one of the biggest pharmaceutical companies in Latvia with 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 30 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

         Information prepared by:
         Salvis Lapins
         Member of the Board
         AS „OlainFarm”
         Tel: +371 6 7013 717
         e-mail: Salvis.Lapins@OlainFarm.lv