JSC „Olainfarm” not-audited financial report 2005 and plans for year 2006

28/02/2006

JSC „Olainfarm” has combined results of activity in year 2005 and made an not-audited consolidated financial report. The full text of the report is available at Riga Stock Exchange home page.


The total profit of the Concern in year 2005 has amounted to 0,370 millions of lats (0,572 mil. EUR). The profit of the holding company of the Concern in year 2005 has amounted to 0,507 mil. of lats (0,721 mil. EUR). The Concern’s earn per share in year 2005 formed Ls 0,036 (0,051 EUR), which shall be valued highly positively comparing to the negative value of this index in year 2004 – Ls -0,07 (-0,11 EUR) per one share.

The total net turnover of the Concern in year 2005 amounted to 13 mil. of lats (18,5 mil. EUR), which is by 22% superceding results of year 2004. Increase of turnover of the Concern is mainly affected by the growth of the holding company’s turnover by 46%, or 3,88 mil. Ls (5,53 mil. EUR). The total turnover of JSC „Olainfarm” in the reporting period amounted to 12,26 mil. of lats (17,45 mil. EUR), which overruns the company’s prognosis in the beginning of year 2005. At the end of 2005it has been reported that prognosis of JSC „Olainfarm” turnover has been raised up to 13 mil. of lats (18,49 mil. EUR), but this increased prognosis couldn’t be fulfilled due to postponement of the some planned seasonal medications delivery to the first quarter of year 2006.

In total the management of the company is evaluating year 2005 very positively. The achieved turnover results are the best in the past ten years. The growth of turnover is related to the choice and implementation of the successful marketing policy and dynamic activity of JSC „Olainfarm” on all traditional markets. Thus, according to IMS Health data, when compared by the turnover on the Latvian pharmaceuticals market in 2005 JSC „Olainfarm” has taken the 9th place among all the companies represented in Latvia and has shown the best result among the domestic Latvian manufacturers. Turnover of JSC „Olainfarm” on the Latvian market in year 2005 has amounted to 3,27 mil. of lats (4,7 mil. EUR), increasing by 51% comparing to year 2004. The company’s share of the Latvian market has also increased by 33% comparing to year 2004 and reached 2,76%. JSC „Olainfarm” turnover on other markets has also increased substantially.

Along with growth of products’ sales amounts the JSC „Olainfarm” products’ manufacturing amounts have increased. The amount of the products manufactured in year 2005 has by 23% superceded the amount manufactured in 2004.

In 2006 it is planed to raise amounts of manufacturing not only for finished drug forms, but also for chemical products. In year 2006 it is planned to complete reconstruction of chemical manufacturing and certification in accordance with standards of Good Manufacturing Practice, and begin manufacturing of 6 new chemical half-products and 4 new substances.

In year 2006 JSC „Olainfarm” is planning to raise the turnover by approximately 31%, reaching turnover amounts of 16,1 mil. of lats (22,91 mil. EUR). In its turn, planned profit of year 2006 is 0,95 mil. of lats (1,36 mil. EUR).