Profit of Olainfarm Increases by 37% in Nine Months
OREANDA-NEWS. Unaudited profit and loss account for 9 months of 2014 shows that the group has experiences its best nine months so far as it made the net profit of 12.1 million euros and sales of 69.9 million euros. Net profit has increased by 37%, whereas new sales by 30% compared to the same period one year ago. The major sales markets of JSC Olainfarm during this period were Russia, Latvia, Ukraine, Belarus and The Netherlands.
Also a third quarter has been the most successful third quarter for JSC Olainfarm in terms of sales so far, as it made sales of 21.3 million euros, which represents an increase by 12% compared to the same period of last year. Net profit of the company during this quarter was 3.2 million euro. This represents a reduction by 12.5% compared to the last year, but it has to be noted that due to economic difficulties in two of company's key markets, the company decided to create provisions of 0.7 million euros for Russian and Ukrainian receivables..
„We have experienced the best third quarter in terms of sales and the best nine months in terms of the net profit in our history. This and the next year our main focus will be on significant improvement of company's infrastructure as well as increase of our presence in new export markets. We are glad to have new market authorisations in countries that are hardly typical for us, including Peru, Bhutan, Mongolia, Romania and Kosovo. First shipment to Mongolia might even take place later this year," says Valerijs Maligins, Chairman of the Board of JSC Olainfarm.
During nine months of 2014 sales to all company's main markets continued increasing except for Kazakhstan, where they shrunk by 11%, compared to the same period of 2013. To a large extent such reduction was caused by the devaluation of Kazakhstan's currency, but the decline in sales slowed down during the third quarter. The most rapid sales increases during the reporting period were achieved to Poland, where sales grew by 714%, The Netherlands by 184%, Ukraine by 119%, and Lithuania by 94. In total during nine months products of JSC Olainfarm were sold to 32 countries in 5 continents.
During the 9 months of 2014 35 registration cases have been approved in several countries, including such untraditional countries for JSC Olainfarm as Peru, Mongolia, Bhutan, Romania and Kosovo. Several products are still in the process of obtaining MAs, among other countries, in Turkey, registration processes have been launched in Bosnia and Herzegovina and other new markets. Preclinical trials of R-phenylpiracetam are being conducted and totally new forms and line extensions of existing products are being developed. Among other things the company works at development of a new nootropic medication, new product of nitrofurantoine group and a new food supplement. New final dosage laboratory is undergoing a significant modernisation.
Annual meeting of shareholders of JSC Olainfarm held on April 29, 2014 approved operating plan of the Group. According to it, sales of the Group in 2014 are planned to be 93 million euros, but the net profit will reach 15 million euros. According to this unaudited report for 9 months of 2014, during this period 75.2% of annual sales target and 80.7% of annual profit target is met.
Комментарии