In October revenues increased by 57%, partners in Russia prepare for the next year’s requirements

JSC Olainfarm preliminary consolidated results for October 2019 indicate that revenues increased by 57% compared to the same month last year and reached 20 million euro. At the same time consolidated results for the first ten months of 2019 show that revenues reached 118.9 million euro which is an increase by 17%, compared to the ten-month period of 2018. Extraordinary rapid increase in sales was in Russian, Belarus and Tajikistan markets. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

Consolidated sales in October show revenue increase in eight out of ten main markets. In Russia sales grew by 165%, in Latvia by 8%, in Belarus by 25%, in Kazakhstan by 4%, in Tajikistan by 187%, in Georgia by 261%, in Poland by 20%, in the Netherlands by 2999% where sale in October last year were almost nonexistent. Drop in sales was recorded in Ukraine by 5% and in Uzbekistan by 8%.

During the second half of this year rapid increase in sales to Russia is related to implementation of new regulatory requirements. Starting from January next year all packages of medical products must be traceable at every supply chain stage therefore each package must contain a unique serial number. The largest distributors of JSC Olainfarm have purchased additional inventory of pharmaceuticals and plan to sell it during the next year, thus JSC Olainfarm expects drop in sales to Russia in December this year and during the 1^st quarter 2020.

In the ten months of 2019, contribution of the main sales markets of Olainfarm Group increased to 79% of the total revenue – Russia had the largest share of 33%, Latvia – 27%, Belarus – 12% and Ukraine – 8%. and Russia’s share was 28%, Belarus (12% share) and Ukraine (8% share). The Group’s other major sales markets include Kazakhstan, Uzbekistan, the Netherlands, Germany, Tajikistan and Lithuania. The most rapid sales growth during this ten-month period was achieved in the Netherlands, where sales grew by 214% compared to the last year, and in Uzbekistan where sales grew by 39%. Sales in Russia improved by 30%, in Latvia by 12%, in Belarus and in Kazakhstan by 11%, in Germany by 4% and in Tajikistan by 34%. Amongst the largest sales outlets a decline was marked in Ukraine (-1%) and in Lithuania (-21%).

“The Company shows strong sales results also in October. The rapid growth in Russian markets is mainly due to Russia’s new verification of medicinal products, which will come into effect from January 2020. Collaboration partners are making stocks in warehouses, so we expect sales in these markets to be lower in the first months of next year. It should be emphasized that JSC Olainfarm is timely prepared to follow the Russia requirements regarding verification of medicinal products. Complying with these requirements will help us to remain competitive in the market outlet of the Russia and in the Commonwealth of Independent States (CIS) in the future as well,” says Lauris Macijevskis, Chairman of the Board of JSC Olainfarm.

Unconsolidated sales – October and 10 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 16.9 million euros in October, which represents an increase by 73% compared to October, 2018. Sale of products improved in Russia (+194%), Latvia (+3%), Belarus (+25%), Kazakhstan (+1%), Tajikistan (+165%), Georgia (+214%), Poland (+119%) but in the Netherlands (+2999%). There was decline in sales to Ukraine and Uzbekistan by 5% and 8%.

The unconsolidated sales results for the first ten months of 2019 show that JSC Olainfarm sales reached 91.8 million euros, which represents an increase by 19% compared to the first ten months of 2018. During this reporting period, sales have increased in nine out of the ten major markets of Olainfarm – Russia (+39%), Latvia (+3%), Belarus (+8%), Uzbekistan (+39%), the Netherlands (+214%), Kazakhstan (+1%), Germany (+4%), Tajikistan (+30%) and in Italy (+50%). Revenues declined by 3% in Ukraine.