Olainfarm Group achieves largest ever profit last year

  • 2020-05-02
  • LETA/TBT Staff

RIGA - The revenue of the pharmaceutical company, joint-stock Olainfarm Group, in 2019 has reached 137,219,000 euros, which is a 10 percent increase compared to 2018, according to the company's announcement to the Nasdaq Riga Stock Exchange.

The Group's net profit in 2019 was 23,628,000 euros, which is historically the largest amount of the Group's net profit.

For 2019, the Board will recommend paying 0.32 euros per share in dividends to shareholders.

For 2020, the group plans a turnover of 135.5 million euros and a net profit of 14.2 million euros.

The announcement to the stock exchange notes that the Group's gross profit was 84,807,000 euros, which indicates a 13 percent or 9,951,000 euro increase compared to 2018. Gross profit margin improved from 60 percent in 2018 to 62 percent in 2019.

The turnover of the Group's parent company in 2019 increased by 12 percent compared to the previous year and amounted to 104,363,000 euros. Gross profit increased by 17 percent, reaching 69,453,000 euros. The gross profitability of the parent company increased from 64 percent in 2018 to 67 percent in 2019.

The Group's main sales markets in 2019 were Russia with 32 percent, Latvia with 28 percent, Belarus with 11 percent, Ukraine with 8 percent, Central Asia and EU countries with 8 percent in each, other countries with 3 percent and Caucasus countries with 2 percent.

The company's main business segment is finished dosage forms manufactured by the parent company in Olaine. In 2019, medicines worth 80,993,000 euros were sold, which is an increase of 14 percent or 10,046,000 euros compared to 2018. The share of this segment in the Group's total turnover in 2019 increased by two percentage points to 59 percent.

The Group's earnings before interest, taxes, depreciation and amortization (EBITDA) ratio in 2019 was 33,499,000 euros, which is 66 percent or 13,271,000 euros more compared to the 2018 result. The parent company's EBITDA in 2019 improved by 91 percent and reached 29,256,000 euros. In turn, EBITDA profitability in 2019 for the Group and the parent company was 24.4 percent and 28 percent, respectively.

The Group's net profit in 2019 was 23,628,000 euros, which is the largest amount of the Group's net profit in history. Profit increased by 120 percent or 12,897,000 euros compared to 2018. The profitability of the Group's net profit in 2019 was 17.2 percent, while in 2018 the indicator was 8.6 percent.

The parent company's net profit in 2019 was 22,239,000 euros, which is 13,353,000 euros or 150 percent more than in 2018. The profitability of the parent company's net profit in 2019 was 21.3 percent, while in 2018 the indicator was 9.6 percent.