In the first six months of 2020 Olainfarm Group successfully continued its operations in the core markets and ensured growth of medicines supplied within its primary therapeutic areas, which allowed the Group to reach EUR 66 million sales, a similar amount of sales compared to the same time period last year.
The Group's main market in the first half of 2020 was Russia, representing 30% of total sales, while the products for the health of the nervous system reached 53% of medical product sales, the growth was mainly led by increased sales of Adaptol.
"I look back at the first six months of this year and rate it as a dynamic time full of learning. Our main focus was to provide uninterrupted accessibility of our products to the patients we serve in our core markets, in a backdrop of Covid-19 related challenges. Also, it is important to highlight that we have finished work with the company's 5 year strategy transforming to sustainable year-over-year double digit growth in our core segments of prescription products, OTC products and our APIs. In the first half of this year, our focus was on securing our existing business and business in the long-term. A critical strategic lever is to optimize our R&D activities fueling the portfolio with new products. Now we are ready to bring it to the next level by accelerating growth, leading to a significant increase of the company's value. I am pleased to report that our work so far is reflected in the financial results of the first half of the year," said Jeroen Weites, Chairperson of the Management Board of JSC Olainfarm.
Groups reported EBITDA for the first six months of 2020 is EUR 17.9 million, which is a 19% increase compared to the same time period last year, while the net profit is EUR 10 million, which is a 18% decline due to the currency exchange losses resulting from the Ruble exchange rate fluctuations in the reporting period.
Although the Group has implemented comprehensive security measures and was able to continuously supply products due to its vertically integrated manufacturing structure, some markets experienced a decline in demand due to changes in purchasing power and limitations to acquire medical products. Due to the changes in demand, the Group has decreased the sales forecast for 2020 to EUR 126 million, which is a 7% decline to the previously reported. The forecasted net profit for the Group in 2020 is EUR 11.2 million, which is a EUR 3 million decline compared to the prior forecast due to negative exchange rate fluctuations.
JSC Olainfarm is one of the largest companies in the Baltic States with more than 45 years of experience in the production of medicines and chemical pharmaceutical products. The basic principle of the company's activity is to produce reliable and efficient products of the highest quality for Latvia and the whole world. Currently, the products of JSC Olainfarm are exported to more than 50 countries and territories of the world, including the Baltic States, Russia, other CIS countries, Europe, North America, Asian countries and Australia.
Additional information:
Janis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com
Attachment
- Olainfarm_Q2_2020_konsolidetais FS_ENG (https://ml-eu.globenewswire.com/Resource/Download/a580273e-56a1-4495-a7f7-5df201f87bc6)
