Olainfarm makes 1.3 million lats profit in 9 months
Consolidated profit and loss statement of Olainfarm for nine months of this year shows the net profit of 1 279 106 lats (1 820 004 euros). In the third quarter alone Olainfarm has made 454 399 lats (646 552 euros). Improvement in financial performance reflects the successful operations of Olainfarm in Latvian and export markets and proves the efficiency of sales promotion activities that the company has been conducting and still continues in Russia and other CIS markets.
Unaudited profit and loss statement for 9 months shows AS “Olainfarm” shows the company#ins_quot2#s sales of 15.2 million lats (21.6 million euros), which is only by 0.5% less than in nine months of 2008 when sales reached 15.3 million lats (21.7 million euros). After tax profit of the company during this period was 1 279 106 lats (1 820 004 euros), while a year ago the company worked with the net los of 1 352 930 lats (1 925 046 euros).
“Olainfarm” has managed to achieve the record profits in times when most of our export markets are shrinking. To a large extent this is the result of timely investments in product promotion in Russian and other CIS markets, successful work at introduction of new products and cooperation with partners that has resulted in several sizeable contracts. Third quarter covers only a portion of such contract with Poland. Remaining sales of medicines to Poland and Bulgaria, as well as supplies of chemical products to our clients in the UK, with the total value exceeding 1 million euros have already taken place in the fourth quarter and will be covered by our annual report,” says Valerijs Maligins, Chairman of Olainfarm#ins_quot2#s Management Board.
The development of 9 months also confirms the increase in sales to countries where strengthened marketing effort has been made. Nine months sales to Moldova have increased by 21%, Russia by 27%, Kazakhstan by 42% and Azerbaijan even by 104%. Small increase has been achieved even in Latvia, where 9 months sales have increased by 0.5% compared to similar period of 2008.
The biggest decreases in sales to the regular markets of Olainfarm have been seen in Belarus (by 4%), Ukraine (by 13%) and Uzbekistan (by 16%). Some decrease in sales has also been observed in some other markets with smaller influence on overall sales of Olainfarm, including Estonia, Lithuania and Tajikistan. In all of major Olainfarm#ins_quot2#s markets the trend has been that even if Olainfarm#ins_quot2#s sales to these countries have fallen, the pharmaceutical markets of these countries themselves have fallen even sharper.
JSC Olainfarm is one of the biggest companies in the Baltic States with more than 35 years of experience in production of medicines and chemical and pharmaceutical products. The basic principle of Company#ins_quot2#s operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Currently the products of JSC Olainfarm are being exported to more than 30 countries worldwide, including the Baltics, Russia, CIS, Scandinavian and other Western European countries, Asia and the USA.
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