In July revenues increased by 14%, significant growth in all the main markets

JSC Olainfarm preliminary consolidated results for July 2019 indicate that revenues increased by 14% compared to the same month last year and reached 9.5 million euro. At the same time consolidated results for the first seven months of 2019 show that revenues reached 75.9 million euro which is an increase by 8%, compared to the seven-month period of 2018. Positive tendencies are observed in all the main markets – Latvia, Russia, Belarus and Ukraine. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

Consolidated sales in July show that historical major markets (Latvia, Russia, Ukraine and Belarus) had significant increase over July last year, where revenues in Latvia rose by 27%, in Russia by 9%, in Ukraine and Belarus by 26% and 42%, respectively. Sale of products also increased in Italy (by 1153%), in Turkmenistan (by 75%), in Moldova (by 46%) and in the Netherlands (by 62%). Out of the ten largest markets revenues declined only in Kazakhstan (by 42%) and in Germany (by 17%).

In the first seven months of 2019, the main sales markets of Olainfarm Group continued to contribute 78% of the total revenue – Latvia (29% share), Russia (27% share), Belarus (13% share) and Ukraine (9% share). Other major sales markets included Kazakhstan, Uzbekistan, the Netherlands, Germany, Tajikistan and Lithuania. The most rapid sales growth during this seven-month period was achieved in the Netherlands, where sales grew by 481% compared to the last year, and in Tajikistan where sales grew by 29%. Sales in Latvia improved by 13%, in Russia by 3%, in Belarus by 10% but in Uzbekistan by 21%. Amongst the largest sales outlets a decline was marked in Ukraine (-2%), in Kazakhstan (-2%), Germany (-7%) and Lithuania (-28%).

“The most recent sales data for July indicates significant increase, including in such target markets as Latvia and Russia. It shows wider picture about situation in the company and confirms that chosen development path  is successful. Olainfarm’s management team carefully analyses situation in strategic markets and we can confirm that short-term revenue drop in June was related to practical short-term factors on our partners’ side, and we continue to head according to the plan with confidence,” emphasizes Lauris Macijevskis, Chairman of the Board of JSC Olainfarm.

July 2019, consolidated sales	Sales, thous. EUR	Share in total sales	Changes to July 2018
Latvia	3 170	33%	27%
Russia	2 707	28%	9%
Ukraine	1 008	11%	26%
Belarus	893	9%	42%
Kazakhstan	209	2%	-42%
Italy	133	1%	1153%
Turkmenistan	122	1%	75%
Germany	119	1%	-17%
Moldova	118	1%	46%
The Netherlands	116	1%	62%
Other	937	10%	-24%
Total	9 533	100%	14%

7 months 2019, consolidated sales	Sales, thous. EUR	Share in total sales	Changes to 7 months 2018
Latvia	22 230	29%	13%
Russia	20 448	27%	3%
Belarus	9 818	13%	10%
Ukraine	6 760	9%	-2%
Kazakhstan	1 845	2%	-2%
Uzbekistan	1 835	2%	21%
The Netherlands	1 666	2%	481%
Germany	1 135	1%	-7%
Tajikistan	1 058	1%	29%
Lithuania	820	1%	-28%
Other	8 245	11%	4%
Total	75 859	100%	8%

Unconsolidated sales – July and 7 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 7 million euros in July, which represents an increase by 16% compared to July, 2018. Sale of products improved in Russia (+21%), Latvia (+18%), Ukraine (+25%), Belarus (+71%), Italy (+1153%), Turkmenistan (+75%) and in the Netherlands (+62%). The decline was observed Germany by 19% and in Poland by 31%. In July India was among the major markets.

The unconsolidated sales results for the first seven months of 2019 show that JSC Olainfarm sales reached 57.4 million euros, which represents an increase by 7% compared to the first 7 months of 2018. During this reporting period, sales have increased in seven out of the ten major markets of Olainfarm – Russia (+6%), Latvia (+2%), Belarus (+9%), Uzbekistan (+21%), the Netherlands (+483%), Tajikistan (+252%) and in Italy (+28%). Revenues declined by 1% in Ukraine, by 7% in Germany and by 23% in Kazakhstan.

July 2019, unconsolidated sales	Sales, thous. EUR	Share in total sales	Changes to July 2018
Russia	2 522	36%	21%
Latvia	1 416	20%	18%
Ukraine	978	14%	25%
Belarus	847	12%	71%
Italy	133	2%	1153%
Turkmenistan	122	2%	75%
Germany	116	2%	-19%
The Netherlands	116	2%	62%
India	109	2%	N/A
Poland	105	1%	-31%
Other	565	8%	-46%
Total	7 029	100%	16%

Seven months 2019 unconsolidated sales	Sales, thous. EUR	Share in total sales	Changes to seven months 2018
Russia	18 562	32%	6%
Latvia	10 004	17%	2%
Belarus	8 153	14%	9%
Ukraine	6 645	12%	-1%
Uzbekistan	1 835	3%	21%
The Netherlands	1 666	3%	483%
Germany	1 125	2%	-7%
Tajikistan	1 005	2%	252%
Kazakhstan	987	2%	-23%
Italy	746	1%	28%
Other	6 714	12%	-8%
Total	57 441	100%	7%

Results of subsidiaries – July and the first seven months of 2019

The pharmacy chain Ltd. Latvijas Aptieka sales reached 2.1 million euros in July 2019, which represents a 16% increase compared to July 2018. 68 pharmacies were operating during this period. Ltd. Silvanols sales reached 0.2 million euros in July 2019, representing a decline by 11% vs. July 2018. The combined sales of Tonus Elast and Elast Medical in July 2019 were 1.03 million euros, which is by 14% more than this time last year. Olainmed and Diamed Medical Center sales reached 0.27 million euros, while the Belarus subsidiary NPK Biotest reached 0.21 million euros in sales in July that is higher by 59% than in July last year.

During the first seven month period of 2019, Ltd. Latvijas Aptieka sales amounted to 15.0 million euros, demonstrating a 7% increase in comparison to the same time period last year, sales of Ltd. Silvanols reached 3.2 million euros which is 3% less than last year. The combined sales of Tonus Elast and Elast Medical during the seven months this year totaled 5.6 million euros which is an increase by 4%. Medical Centers Diamed and Olainmed revenues were 1.8 million euros during the first seven months of this year and the Belarus company NPK Biotest sales were worth 1.7 million euros, improving the result of the last year by 36%.

	July 2019	7 months 2019
Sales markets of Olainfarm	46	47
Sales markets of the Group	53	54
Number of pharmacies	68
Sales of Latvijas Aptieka, thous. EUR	2 060	15 028
Sales of Medical centers, thous. EUR	266	1 802
Sales of NPK Biotest, thous. EUR	211	1 726
Sales of Tonus Elast and Elast Medical, thous. EUR	1 025	5 564
Sales of Silvanols, thous. EUR	208	3 169

According to the JSC Olainfarm budget, unconsolidated sales are planned to reach 99 million euros in 2019, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first six months of 2019, 58% of annual target for unconsolidated sales and 57% of annual target for consolidated sales have been reached.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 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 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
       
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com