Unaudited consolidated financial statements “Olainfarm” for the 9-month interim period of 2021
During the nine months of 2021, the Group’s activity has always been affected by the Covid-19 pandemic, but most of the business segments have nevertheless performed well.
In the first nine months of 2021, the highest sales volume was achieved in Latvia, reaching 30,054 thousand euros, an increase of 1,315 thousand euros or 5% more than in the same period of the previous year. Sales in Latvia represent 30% of the Group’s total turnover.
The second highest volume of product sales is in Russia, where during the period considered EUR 26,413,000, an increase of EUR 5,825,000 or 28% compared to the previous year. In contrast, sales in Belarus decreased by 622 thousand euros or 5% compared to last year’s result, reaching 10,873 thousand euros. The decline in demand in Belarus is closely related to the political and economic crisis, the depreciation of the Belarusian ruble against the euro and the imposition of a 10% value added tax on medicines from February 2021.
“Considering the impact of Covid-19 on the global healthcare and pharmaceutical industry, the Group posted stable operating income in the Latvian market. Russia is also one of the most important markets for us. The Group’s subsidiaries are active in the region, carrying out market studies and adapting our offer to customer needs. The work carried out so far has yielded good results in most of the countries of Eastern Europe and the CIS – Ukraine, Tajikistan, Turkmenistan, Uzbekistan and Georgia, however, given the uncertainties and constraints caused by the pandemic of Covid-19, the conditions of a rise in inflation and rising interest rates, as well as fluctuations in exchange rates in the Group’s markets, we will pay particular attention to reducing the potential impact of these factors on future performance, ”said Jānis Buks, Chairman of the Board of JSC Olainfarm.
During the first nine months of 2021, the Group’s sales amounted to 99,111 thousand euros, an increase of 10,218 thousand euros or 11.5% compared to the same period l ‘last year. The gross margin amounted to 56,730 thousand euros, an increase of 4,140 thousand euros or 7.9% compared to the same period last year. The profitability of the gross margin during the period considered is 57.2%, which represents a decrease of 2.0% compared to the indicator of 59.2% in 2020. The most significant effect on the change in gross margin is the reclassification of costs between administrative and production expenses.
The net profit of the Olainfarm group for the period considered reached 9,998 thousand euros, an increase of 4,848 thousand euros or 94.1% compared to the previous year.
The Group’s EBITDA indicator for the first nine months of 2021 stands at 16,857 thousand euros, or 7.0% or 1,269 thousand euros less than for the same period in 2020. The Group EBITDA profitability stood at 17.0%.
The companies of the Olainfarm group produce a wide range of pharmaceutical and chemical products, food additives, compression products, cosmetics, provide medical services, retail drugs in pharmacies and wholesale drugs from other manufacturers.
The Group’s key segments during the first nine months of 2021 have been profitable. The highest profit before tax was recorded in the segment of pharmaceutical and chemical products, with a profit of 7,785,000 EUR, in the wholesale trade the indicator was 316,000 EUR, in the retail trade (pharmacies ) EUR 647,000 was realized and in the other segments the profit before tax reached EUR 834 thousand. In the compression materials segment, pre-tax profit amounted to 81 thousand euros.
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