Results of activity of JSC “Olainfarm” in the nine months of 2005
Management of Joint Stock Company „Olainfarm” has combined financial results of the
company’s activity in the three quarters of year 2005, and approved an unaudited
financial report for 9 month on November 29th.
Results of the nine moth activity in 2005 indicate that JSC „Olainfarm” has
successfully achieved plans set for production and sale, but prognoses for some
positions might even be improved.
Turnover of the company in the first three quarters of year 2005 achieved Ls 8,4
millions (11,96 millions EUR). It by 44% overruns the turnover of the company for
the same period the previous year. The turnover of the company for the mentioned
period comparing to the same period of year 2004 has grown by 2,55 millions of lats
(3,62 millions EUR). The rise of sales volumes has been achieved despite the usual
stagnation of the pharmacy market in the summer period. The main sales markets for
the products remained the same. In developing the direction of chemical products
JSC „Olainfarm” has started to supply its products to India, China and South Korea.
Several shipments of chemical half-products have been made to those countries for
the total amount of 89,66 thousands of lats (127,58 thousands EUR). It should be
mentioned that manufacturing process for these products is expensive and requires
substantial high-technlogy scientific investment. This is why these products are not
produced in those countries and JSC „Olainfarm” has already received orders for the
next year as well. After five years interruption, due to unstable situation on the
local pharmaceutical market, JSC „Olainfarm” resumed deliveries of medication to
Azerbaidzan. In cooperation with Lithuanian drug manufacturer Sanitas, JSC „Olainfarm”
has started to deliver medication Ranitidine for the Lithuanian market.
In July 2005 JSC „Olainfarm” has sold the total amount of shares of closed joint stock
company „Aroma-Petersburg” (Russia), due to the fact that activity of the company had
a negative impact on the financial indices of the concern.
Due to high demand for anti-virus and anti-cold medications in the beginning of the
fall season as well as owing to registration of the company’s medications in the new
markets, the Management board of JSC „Olainfarm” has increased year’s sales and
turnover prognosis from 12 millions of lats (17,07 millions EUR) up to 13 millions of
lats (18,5 millions EUR).
Manufacturing of products in the first three quarters of 2005 has been executed in
accordance with plan. The total amount of the manufactured output for the reporting
period by 24% supercedes the corresponding indices of the first nine month in 2004.
The other financial results for the first nine month of year 2005 are valued positively.
Contrary to losses of the same period the previous year, the first 9 month of 2005
have been concluded by the company with the profit of Ls 0,292 millions (0,415 millions
EUR). The index of earning per share (EPS) for the corresponding period is Ls 0,0285
(0,041 EUR) per one share, contrary to Ls -0,0152 (-0,0226 EUR) on the same period of
the previous year.
Liquidity indices comparing to the corresponding period of the previous year do not
differ substantially in quantity, but a difference in quality is obvious. If
comparingly high common liquidity index in the corresponding period of year 2004 could
be explained by high proportion of accounts receivables, then in 2005 it can be
explained by growth of the remainder of the provisions connected to the increase of
turnover of the company. Solvency ratio, comparing to the corresponding period of
the same year, has not changed substantially. It’s value is positive and equals to 1,13.
Business activity index is improving all the time when collection of debtors’ debts is
improving. For example, index of debtors’ turnover has reduced from 249 days in 2004 to
176 days. Profitability indices are positive as well, unlike negative results of the
previous year. Net turnover profitability for the reporting period amounts to 3,48,
but self capital profitability – 3,09.