Baltic Export, Baltic States – CIS, Latvia, Markets and Companies, Medicine

"It is not about decreasing our sales volume, on the contrary, we are striving to sell more in Russia, Ukraine and elsewhere, but we also wish to establish ourselves in new markets, which could improve that proportion. We hope for a successful registration in Turkey that, in terms of turnover, is as large a market as Russia," the head of Olainfarm said. At the moment the company exports its products to 40 countries. The company began exporting to Albania, Mongolia, Tajikistan and Turkmenistan fairly recently, but a steady increase of sales volume is quite visible.

Maligins says that Olainfarm often used European money to improve infrastructure and upgrade manufacturing, but the current investment policy focuses on investing in new companies, such as Latvia's green pharmaceutical company Silvanols, which is growing quickly and has great potential in exporting to western countries. Olainfarm has also acquired the manufacturer of elastic medical products Tonus Elast that has a significant foreign demand for its products.

"Investing in such companies gives foundation for a synergy of resources. It allows us to use the marketing abilities of a company that has conquered a certain market in marketing other companies' products," Maligins explained, adding that working in several fields gives great balance for the company. While the local market is too small for Silvanols, it has great potential for export. The company currently has a turnover of EUR 5 mln, but in time, thanks to export, the turnover could grow to 10 and then EUR 15 mln, the businessman assured.

He admits that there are plans of acquiring another company, promising that the stock market will be the first to know about the signed contract of purchase.

As reported, preliminary consolidated turnover of Olainfarm in the first seven months of 2016 reached EUR 63.58 mln, which is 9% more than during the same period in 2015.

According to unconsolidated preliminary figures, in seven months of 2016 sales of Olainfarm were EUR 54.71 mln, which represents an increase by 6% compared to the same period of 2015.

This year's operating plan of the company expects the company's unconsolidated sales in 2016 to reach EUR 86 mln, while its consolidated sales should reach EUR 100 mln.

Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange.

Maligins also said in an interview that in the last decade the price of Olainfarm shares has soared by 448%.