In the 1st quarter of 2021, the sales volume of the Olainfarm Group was 33.499 million euros, exceeding the 2020 indicator by 3%. Gross profit amounted to 18.911 million, which is an increase of 524,000 euros or 2.8% compared to the same period last year, the company’s representatives report.
The net profit for the first quarter reached 5.149 million euros, which is 3.036 million euros or 144% more than last year, the company reports.
During the reporting period, Olainfarm continued to implement precautionary measures both in the production plant and in the administration and sales structures, provided organizational and hygiene requirements, the possibility to perform work duties remotely, where the specifics of the work allow, took informative and other measures.
Several Olainfarm Group companies used the opportunities provided by the Latvian state to receive financial support to mitigate the effects of Covid-19 and to motivate medical personnel. In total, in the 1st quarter of 2021, the group companies have received financial support from the Latvian state in the amount of 85,000 euros.
The spread of the pandemic affected the results of the group’s subsidiaries. In retail trade, a significant decrease in demand was caused by the restrictions on the organization of physical visits and retail space in outpatient institutions and shopping centers imposed by legislation. The segment of compression products, which has products that can be used after medical manipulations, experienced the most changes in demand.
The drop in demand for the leading product category of health-promoting products – products for the treatment of cold symptoms – has a significant impact. Sales of cold and cough products are declining in all countries due to Covid-19 restrictions and low incidence of acute respiratory viral infections in 2021. In most countries, demand for cough and cold products fell sharply as the use of masks was controlled and working from home meant less physical contact between people. In addition, over-the-counter medicines and supplements focus on vitamin D, immune-boosting vitamins and antivirals.
During the reporting period, investments were made in the development of active pharmaceutical ingredients production technologies and in the development of new products – finished dosage forms, including the European Union (EU) co-financed project “Active Pharmaceutical Ingredients Research” and the Latvian Investment and Development Agency “Innovation Voucher Support Services”.
Investments have also been made in pre-clinical and clinical trials of medicines, including the EU co-funded project “Pre-clinical and Clinical Trials in Medicines”.
In the 1st quarter of 2021, four Phase 3 clinical trials were planned and the necessary actions were initiated to launch the trials, which were planned to start in 2021, taking into account the limitations and risks related to the implementation of the Covid-19 pandemic.
Work has begun on the modernization project of the company’s wastewater treatment plant – a technical task for the development of the wastewater treatment plant technology project has been prepared and approved. The aim of this project is to create a new, fully automated, closed-type wastewater treatment plant technology in Olaine.
In the reporting quarter, investments were mainly made in manufacturing, product development, IT and digitization. The limitations and economic consequences of the Covid-19 pandemic have significantly affected the group’s ability to realize the receipt and execution of planned investments and to partially postpone their implementation to the second half of the year. The total realized investments in the 1st quarter of 2021 accounted for 36% of the plan.
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