Results of activity of JSC “Olainfarm” in the first quarter of 2005


On May 27th, 2005, the Management Board of Joint Stock Company „Olainfarm”

has approved the unaudited financial report for the first quarter of year 2005.

JSC „Olainfarm” has completed the first quarter of 2005 with the profit

in amount of 129988 lats (184905 EUR) which is by almost four times exceeding

the results of first quarter of previous year. Therefore, coefficient of profit

per share (EPS) has reached 0,0127 Ls (0,018 EUR) per one share. Turnover of the

company in the first three month of this year has reached 2,9 million lats

(4,13 million EUR) which by 0,95 million lats (1,35 million EUR) or 48% overruns

the turnover in the same period of year 2004.

The main financial stability indexes in the first quarter of 2005 are valued as positive.

Overall solvency ratio (equity/creditors) in comparison with the previous period

remain 1,16 which is optimal. Overall liquidity ratio (current assets/short term creditors)

has reached 2,64, which is a bit higher comparing to the previous period ratio and is

a little bit over the optimal value.

The results of the company’s activities in first quarter indicate that manufacturing

and sale of the products is going in as planned. Thus, plan for sale of the products

has been executed by 102%. The rise comparing to corresponding period of year 2004

has formed 49%.

The work in accordance with marketing plans approved by JSC „Olainfarm” has been

successfully continued in 2005 in all markets. A number of representation agencies

of JSC „Olainfarm” in different countries keeps increasing. Along with the standing agencies

in Russian Federation and Kazakhstan which are working for many years now a new agency

of JSC „Olainfarm” in Belarus has been opened. In there nearest time the work on

registration of representation agency in Lithuania is going to be finished. Apart from

already mentioned countries groups of medicinal representatives are working in Poland,

Ukraine, Georgia and Uzbekistan.

In the beginning of year 2005 several contracts, important for the further

 development of the company, have been concluded. Thus, JSC „Olainfarm” has reached an

agreement with Lithuanian company „Sanitas” on manufacturing of preparation „Neiromidin”

(used fot curing nerve system disorders) in ampoules form, which will secure expansion of

use of this highly effective medicine. Continuing successful cooperation with the Canadian

company „Pharmascience”, which so far has been expressed by co-production of very popular

and effective probiotic remedy „Jogurt”, joint stock company „Olainfarm” has introduced

 a new preparation „Vagilac” in the form of vaginal capsules at the Latvian market.

A contract with German company „Helm” has been signed which presupposes production of newest

 generic preparations for Baltic states market. Registration of JSC „Olainfarm” products

in Turkey, Poland and Bulgaria is also continuing in accordance with the plan.