Baltic Export, Latvia, Markets and Companies, Medicine

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.

"We have finished work with the company's five-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 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 forecast 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.

As reported, Olainfarm Group’s audited net turnover in 2019 increased 10.4 times on year and reached EUR 137.219 million, while audited profit grew 2.2 times to EUR 23.628 million.

Olainfarm makes medicines, food supplements, active pharmaceutical ingredients and chemical substances. Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange.