The turnover of the group of the pharmaceutical company “Olainfarm” was 120.249 million euros last year, which is 9.9% more than a year earlier, while the profit of the group increased by 66.5% and was 21.161 million euros, according to “Firmas.lv” information.
Meanwhile, AS “Olainfarm” itself worked with a turnover of 113.537 million euros in 2022, which is 7.6% more than the year before, while the company’s profit increased by 79% – up to 18.143 million euros.
At the same time, the management report of the annual report states that if the financial result of the pharmacy chain SIA “Latvijas aptieka” belonging to “Olainfarm” was not classified as a discontinued operation in 2022, the group’s turnover last year would be 150.252 million euros.
The management report also mentions that last year there was an increase of 10.8% or 9.455 million euros in the group’s medicine production segment, while the compression products segment had an increase of 7.6% or 645,000 euros compared to 2021. Last year, the demand for medicines for the nervous system increased by 13.1% or 5.956 million euros, while the demand for cardiovascular preparations increased by 27.7% or 2.762 million euros.
According to the management report, last year’s revenue growth was facilitated by a range of marketing activities, effective work of the sales team for the promotion of products in sales markets and expansion of the target audience. At the same time, sales costs increased by 1.668 million euros due to the increase in marketing activities.
Last year, investments in research and development were made in the amount of more than 1.9 million euros. The actual investment volume of the concern last year was 9.345 million euros, according to the management report.
Also, the management report mentions that the increase in the category of prescription drugs for the parent company of the concern “Olainfarm” was 11.6% compared to the previous year, while the demand for Olainfarm’s non-prescription products increased by 11.9%. The company’s revenues from wholesale last year decreased by 9.2% compared to 2021.
At the same time, the management report states that, according to the group’s strategy, it is planned to stop the operation of the medicine wholesaler in 2023. It is also planned to close the subsidiary of “Olainfarm” in Russia this year.
In 2021, the “Olainfarm” concern worked with a turnover of 109.382 million euros and a profit of 12.712 million euros. Meanwhile, “Olainfarm” itself worked with a turnover of 105.51 million euros and a profit of 10.137 million euros in 2021.
It has already been announced that the Competition Council (KP) previously allowed the parent company of the “Repharm” group AS “AB City” to acquire sole decisive influence over “Olainfarm”. At the same time, in order to prevent possible risks to competition and the negative consequences of the merger in the retail market of pharmaceutical products, the merger is permitted by the binding provisions, which provide for the disposal of the capital shares of “Latvijas Aptiekas” to a third party unrelated to “AB City” and its related parties.
It is also reported that the KP has extended the deadline for expropriating 51% of the capital shares of “Latvijas Aptieka” owned by “Olainfarm” until December 31, 2023.
In the submission to the competition supervisor, “Olainfarm” indicated that due to circumstances beyond “Olainfarm’s control” it is not possible to complete the disposal of 51% of the capital shares of “Latvijas aptiekas” within the originally set deadline of April 30, 2023, because “Olainfarm” together with the interested buyer must perform activities which additional time is required for execution.
Also, in the submission to the KP, it is indicated that the potential buyer of the capital shares of “Latvijas Aptiekas” wants to purchase all the capital shares of “Latvijas Aptiekas” with all assets, and there is a possibility that within the potential transaction “Olainfarm” will have fully fulfilled the binding conditions imposed by the decision of the KP – to sell 100% of the capital shares – before the end of the specified execution period, which is April 30, 2024.
“Olainfarm” deals with finished dosage forms, pharmaceutical preparations and nutritional supplements, as well as with the production of chemicals and active pharmaceutical ingredients. “Olainfarm” concern includes “Klīnika DiaMed”, “OlainMed”, “Latvijas aptieka”, “Silvanols”, “Olainfarm energy”, “Competence center of pharmaceutical, biomedical and medical technologies”, “Global Lux” and “Tonus Elast”.
“Olainfarm” was registered in 1991, and its share capital is 30,079,109 euros. The owner of the company is AS “AB City”, the parent company of AS “Repharm” group. The real beneficiaries of “AB City” are Sergej Korniyenko and Robert Taviev.
Source: LETA
2023-10-02 10:31:17
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