In 2020, the Olainfarm Group stably continued its operations in the main sales markets. In the first nine months of 2020, the largest sales volume was in Latvia, reaching 28,738 thousand. EUR, which is 232 thousand. EUR or 1% more than in the same period last year. Latvian sales account for 32% of the Group’s total revenue. Sales in Russia in the first nine months of 2020 are 20,590 thousand. EUR, which is a decrease compared to 2019, as the previous year saw significant additional deliveries scheduled for that year.
“The Covid-19 pandemic and the constraints it has brought have brought a variety of challenges, but we understand how to overcome them and are committed to achieving our growth plans as outlined in the company’s five-year strategy. As a long-term investment, we have established a subsidiary in Russia, which provides even more accurate insight into the medical industry and allows us to explore the market, adapting our offer to relevant and current customer needs. I am pleased to say that the new business model has been implemented in Russia and our team is operating at full capacity, ”says Elena Bušberga, Member of the Board and Executive Director of JSC Olainfarm.
In the first nine months of 2020, the Group’s revenue reached 88,893 thousand. EUR, which is a 10% reduction compared to the level of revenue a year ago. Gross profit margin in 2020 is 59.2%, which is a decrease of 1.9 pp compared to the indicator of 61.1% for the nine-month period of 2019.
The Group’s EBITDA indicator in the first nine months of 2020 was 18,130 thousand. EUR, which is by 25% or 6 089 thousand. EUR less than for the same period in 2019. The Group’s EBITDA margin was 20.4%. The Group’s projected annual profit is maintained at the previously announced level of EUR 11.2 million.
The Group’s financial position in the third quarter of 2020 is stable. Successful operational activities of the Group at the end of September 2020 allowed to accumulate 29,991 thousand. EUR. This is an important precondition for reducing uncertainty in sales markets, as well as ensuring the supply of raw materials while maintaining stable operations. The accumulated funds provide an opportunity to continue financing investments in fixed assets, as well as to invest in research – clinical trials.
Four Phase 1 clinical trials (pharmacokinetics and bioavailability) were completed in the first nine months of 2020, while one Phase 1 clinical trial was postponed to the first half of 2021, taking into account the Covid-19 pandemic and the European Medicines Agency’s 2020 target. Guidelines for the conduct of clinical trials issued on 20 March. In 2020, four Phase 3 clinical trials are being planned. Due to the limitations and risks associated with the implementation of the Covid-19 pandemic in clinical trials, the implementation of Phase 3 clinical trials (clinical part) is planned to start in 2021.
JSC “Olainfarm” is one of the largest companies in the Baltic States with more than 45 years of experience in the production of medicines and chemical pharmaceutical products. JSC “Olainfarm” is a TOP14 manufacturing company in Central and Eastern Europe. At present, the products of JSC Olainfarm are exported to more than 50 countries, including Russia and other CIS countries, as well as European countries, North America, Asia and Australia. The basic principle of the company is to create sustainable healthcare products and services using the accumulated production and sales knowledge.
AS “Olainfarm”
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