“Olainfarm” unaudited consolidated financial statement of the 9-month interim period of 2021
In the nine months of 2021, the Group's activity was still affected by the Covid-19 pandemic, but most of the business segments have nevertheless performed well.
In the first nine months of 2021 the largest sales volume was in Latvia, reaching EUR 30,054 thousand which is an increase of EUR 1,315 thousand or 5% more than in the same period of the previous year. Sales in Latvia account for 30% of the Group's total revenue.
The second largest sales volume of products is in Russia, where in the reporting period EUR 26 413 thousand which is an increase of EUR 5,825 thousand or 28% compared to the previous year. Sales in Belarus, on the other hand, decreased by EUR 622 thousand or 5% compared to last year's result, reaching EUR 10,873 thousand. The fall in demand in Belarus is closely linked 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 onwards.
“Taking into account the impact of Covid-19 on the global healthcare and pharmaceutical industry, the Group showed a stable operating result in the Latvian market. Russia is also one of the most important markets for us. The Group's subsidiaries are active in the region, providing market research and adapting our tender to customer needs. The work done so far has yielded good results in most of the Eastern European and CIS countries - Ukraine, Tajikistan, Turkmenistan, Uzbekistan and Georgia, however, given the uncertainties and constraints caused by the Covid-19 pandemic, the conditions for rising inflation and rising interest rates, as well as exchange rate fluctuations in the Group's markets, we will pay special attention to reducing the potential impact of these factors on future performance,” says Jānis Buks, Chairman of the Board of JSC Olainfarm.
In the first nine months of 2021, the Group's revenue amounted to EUR 99,111 thousand, which is an increase of EUR 10,218 thousand or 11.5% compared to the same period last year. Gross profit amounted to EUR 56,730 thousand, which is an increase of EUR 4,140 thousand or 7.9% compared to the same period last year. Gross profit profitability in the reporting period is 57.2%, which is a decrease of 2.0 percent compared to the indicator of 59.2% in 2020. The most significant effect on the change in gross profit is the reclassification of costs between administrative and production expenses.
The net profit of the Olainfarm Group for the reporting period has reached EUR 9,998 thousand, which is an increase of EUR 4,848 thousand or 94.1% compared to the previous year.
The Group's EBITDA indicator for the first nine months of 2021 was EUR 16,857 thousand, which is 7.0% or EUR 1,269 thousand less than for the same period in 2020. The Group's EBITDA profitability was 17.0%.
Olainfarm Group companies produce a wide range of pharmaceutical and chemical products, food additives, compression products, cosmetics, provide medical services, retail medicines in pharmacies, as well as sell medicines from other manufacturers in wholesale.
The Group's key segments in the first nine months of 2021 were profitable. The largest pre-tax profit was in the pharmaceuticals and chemicals segment, earning EUR 7,785 thousand, in wholesale the indicator was EUR 316 thousand, in retail (pharmacies) EUR 647 thousand was earned, and in other segments the profit before taxes reached EUR 834 thousand. In the compression materials segment, profit before taxes amounts to EUR 81 thousand.
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