Olainfarm’s profit almost doubles


Consolidated financial accounts of AS „Olainfarm” for 2010 show that the Company has set yet another record in profits by making the net profit of 6.8 million lats (9.7 million euros). This represents nearly 93% increase compared to the net profit of 2010, when AS “Olainfarm” made the net profit of 3.53 million lats (5.02 million euros).

Unaudited profit and loss statement of AS „Olainfarm” for 2011 shows that the company made sales of 36.71 million lats (52.24 million euros). Concern’s after tax profit during this period was 6 833 082 lats (9 722 600 euros). In 2010 AS “Olainfarm” made net profit of 3 539 451 lats (5 036 185 euros).

“Last year we started to build our retail pharmacy network in Latvia, and this year we are going to expand it. We are going to continue establishing our position as a steadily growing manufacturer of high-quality pharmaceuticals. Forty years of production experience helps us to create pharmaceuticals that will be the flagship in the particular product range. The skill of acquiring new markets while consolidating the existing markets, which has been developed during recent years, is going to help promote the sales volume growth,” announced Valerijs Maligins, Olainfarm’s Chairman of the Board.
During 2011 sales have grown in all main sales markets of the company, except in Georgia, where, compared to 2010, the sales were by 20% smaller. In other markets growth rate varied from 17% in Russia to 1710% in The Netherlands. Even in Belarus, which faced several local currency difficulties during 2011 and experienced several devaluations, AS “Olainfarm” managed to increase its sales by more than 25%. Main sales markets of AS “Olainfarm” during 2011 were Russia, Ukraine, Belarus, Latvia, Kazakhstan and United Kingdom.

During 2011 39 registration cases of products of AS “Olainfarm” were completed and 4 products were registered in system of the WHO. Among others, registration of Olvazol® capsules in Ukraine is still waiting its completion.

Annual General Meeting of Shareholders of „Olainfarm” held on April 29, 2011 approved the operating plan of the company. According to it, the forecast sales of the Concern for 2011 were 29.4 million lats (41.8 million Euro), but the net profit is forecast at 5.1 million lats (7.3 million Euro). On November 16, 2011 Board of the Company decided to increase annual sales and profit targets of the Company. The new sales target was set at 35 million lats (49.8 million euros) while the new profit target was set at 6.3 million lats (8.96 million euros). According to this unaudited report during 2011 105% of revised sales targets and108% of revised profit targets are met.

During 2011 changes have been made to the composition of the Concern and now it consists from Parent company AS “Olainfarm”, its daughter companies SIA “Ozols JRD”, whose main activity will be to organize sports and active leisure activities in the town of Olaine, as well as daughter company “Olainfarm Enerģija”, which will produce and sell electric energy, using cogeneration technologies. Also during the 4th quarter of 2011 travel agency „First Class Lounge” and pharmaceutical retail companies SIA „Ilmas Aptiekas”, SIA Juko 99”, SIA „Veritas Farm”, SIA „Inula Farma”, SIA „Vita Plus” un AS „Lege Artis Rīga”, were purchased. Shares in SIA „Reinolds” were alienated.
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
Cell: +371 26448873
e-mail: Salvis.Lapins@olainfarm.lv