Latvians sense money
Latvian medicines producer Olainfarm turned over 110.7 million Euros and made an 11.6 million Euro profit in 2016, according to the company’s audited consolidated 2016 statement to Nasdaq Riga.
According to the statement, the pharmaceutical group’s annual sales grew 14 per cent last year to 110.7 million Euros. The group’s net profit in 2016 was 11.6 million Euros, which represents a reduction of 24 per cent compared to 2015, when the profit record of 15.3 million Euros was set. The profit of 2016 was considerably adversely influenced by provisions of about 7 million Euros doubtful receivables, according to the report.
Sales of the parent company in 2016 reached 91.1 million Euros, which represents an increase of 8 per cent compared to 2015, when the parent company’s sales were 84.7 million Euros. In 2016, the parent company made a net profit of 9.6 million Euros, which is a reduction by 34 percent compared to 2015, when the net profit of the parent company was 14.6 million Euros.
The most rapid sales increase of the Olainfarm Group in 2016 was achieved in Uzbekistan, where sales grew by 65 per cent. In 2016 Lithuania became one of the ten biggest markets of the group, replacing Tajikistan. The biggest sales markets of the group in 2016 were Russia, Latvia, Ukraine and Belarus.
The most rapid sales increase of the parent company in 2016 was achieved in Uzbekistan, where sales grew by 65 per cent. Sales to Lithuania grew by 34 per cent and sales to Belarus and the UK, each grew by 17 per cent. The biggest sales reduction took place in the Netherlands, where sales shrunk by 56 per cent. In 2016 Lithuania became one of the ten biggest markets also for the parent company, as it replaced Turkmenistan. The biggest sales markets of the parent company in 2016 were Russia, Ukraine Latvia and Belarus.
The best-selling products of the parent company in 2016 were CNS medicines Neiromidin, Noofen and Adaptol, antibacterial preparations of Furamag and Furasol, antiarrhythmic medicine Etacizin, antituberculosis products PASA Sodium salt and antiallergic medicine Fenkarol. The share of the company’s best-selling product Neiromidin in total sales of the parent company increased from 18 per cent to 20 per cent in 2016.
During the reporting period, registration processes of parent company’s products continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam.
Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Ukraine, Mongolia, Armenia, Turkmenistan and Bosnia and Herzegovina. Registration processes of several other products were launched in Turkey.
The annual meeting of shareholders of Olainfarm held on June 7, 2016 approved an operating plan of the Olainfarm Group for 2016. According to the plan, sales of the group in 2016 were planned to be 100 million Euros, but the net profit was expected to reach 10 million Euros. According to the audited report for 2016, during this period 111 per cent of the annual sales target was met and the annual profit target was exceeded by 16 per cent.
At the same meeting targets for parent company’s operations were approved, stating that the parent company’s sales target is 86 million Euros, and the profit target is 9 million Euros. According to these accounts, the parent company met 106 per cent of sales target and exceeded its profit target by 7 per cent.
Olainfarm makes medicines, food supplements, active pharmaceutical ingredients and chemical substances. Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange. The company’s key owner is its Board Chairman Valerijs Maligins.