Olainfarm Sales In The First Five Months Increase by 2%

Olaine, June 18, 2018

Olainfarm Sales In The First Five Months Increase by 2%  

Consolidated Results May and 5 months of 2018

Preliminary consolidated Olainfarm Group sales in May 2018 were 8,67 million euros, which represents a decrease by 20% compared to sales of May 2017. The major sales markets of the Company remained Russia, Latvia, Ukraine and Belarus, representing 78% of total sales volume.  In May 2018 Olainfarm Group was selling its products to 35 markets worldwide.

The largest increase in sales compared to May of last year was noted in Poland (+ 137%) and Armenia (+ 107%), which are new and growing Olainfarm sales markets. 19% increase in sales vs. the same period of year 2017 was reached in the home market.   Compared to May of last year, sales decreased by 49% in Russia.  The decrease was also noted in several Central Asian markets, due to the cyclic nature of orders.

Sales of pharmacies of SIA Latvijas Aptieka in May 2018 reached 1,9 million euros, which represents an increase of 12% compared to the same period of 2017.  Sixty-eight pharmacies were operating during May.  Sales of Silvanols in May reached 0,38 million euros and remained at the level of the previous year.  Combined sales of Tonus Elast and its Russian sales arm Elast Medical were 0.88 million euro, representing 6% increase.  Combined sales of health care companies Diamed and Olainmed in May reached 0.23 million euros, while sales of NPK Biotest reached 0.15 million euros.

Consolidated sales of JSC Olainfarm in five months of 2018 reached 50 million euros, which represents an increase by 2% compared to the same period of 2017.  In the reporting period Olainfarm Group was selling its products to 49 markets.

The significant growth in the five months of this year was noted in Japan, where the volume of sales has grown by 1748% against the corresponding period of last year, when the export dynamics was passive. Sales in Uzbekistan in reporting period increased by 78%, by 46% in Germany and by 32% in Lithuania. Sales in Russia fell by 19% over the past five months, largely influenced by the results of May. The Group's largest outlets in the 5 months of 2018 were Latvia, Russia, Belarus and Ukraine.

Sales of pharmacies of SIA Latvijas aptieka in 5 months of 2018 reached 9,8 million euros, which represents an increase by 15% compared to the same period of 2017.  Sales of SIA Silvanols in five months of 2018 were 2,4 million euros and remained at the level of the previous year. Sales of SIA Tonus Elast in five months reached 3,7 million euros, representing increase of 19%. Combined sales of health care companies Diamed and Olainmed in 5 months reached 1 million euros, but sales of NPK Biotest was 0.98 million euros.

Unconsolidated results May and 5 months of 2018

Unconsolidated preliminary sales of JSC Olainfarm in May 2018 reached 6,2 million euros, which represents a decrease by 32% compared to the May of 2017. The sales volumes were mostly influenced by the performance in Russia and in several Central Asian markets, where the decrease was observed. Turnover in Latvia grew by 16%.  During this reporting period, the company sold its products in 29 countries.

Unconsolidated 5-months sales of JSC Olainfarm reached 38,4 million euros, which represents a decrease by 3% compared to the same period of 2017.  Positive sales dynamics has been achieved in Japan, where sales grew by 1748%, vs. the same period of year 2017. Sales have also increased Latvia, Lithuania, Uzbekistan, Germany and Ukraine.  On the contrary, 5-months sales in Russia dropped by 24% vs. the same period of last year and this result was mostly influenced by the performance in May.

In total during this five months period JSC Olainfarm sold its products to 41 countries.

According to the estimates of JSC Olainfarm, the unconsolidated turnover of the company in 2018 could reach 96 million euros, while the consolidated turnover - 130 million euros. According to the preliminary turnover figures published here, in the 5 months of 2018, 41% of the total unconsolidated turnover planned for 2018 and 38.5% of the planned annual consolidated turnover has been achieved.

 JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with 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 50 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Information prepared by:

         Salvis Lapins

         JSC Olainfarm

         Member of the Management Board

         Rupnicu iela 5, Olaine, Latvia, LV 2114

         Phone: +371 6 7013 717

         Fax: +371 6 7013 777

         E-mail: Salvis.Lapins@olainfarm.lv