Olainfarm Group’s revenue in 2020 reached EUR 9.5 million and the mum or dad firm closed the yr 2020 with 11.5 million EUR revenue
The Administration Board will suggest to approve a dividend payout of EUR 0.17 per share within the annual report of 2020, which is a complete of EUR 2 394 463
Vital investments are deliberate for analysis and growth, in addition to the acquisition of merchandise and modernization and digitalization
“Covid-19 is having a big influence on the worldwide healthcare and pharmaceutical industries. Our values and look after the society stay unchanged on this troublesome time, we attempt to enhance folks’s well being and high quality of life. In accordance with the Olainfarm Group’s five-year technique “Ahead”, in 2020 an unprecedented transformation of the Group was initiated with the aim of creating inside processes simpler for sustainable progress. Regardless of the challenges attributable to Covid-19 we now have managed to construct a powerful basis. Transferring in direction of strengthening and growth characterizes Olainfarm Group’s method for the yr 2021 and past. This might be based mostly on important investments in analysis and growth, specifically – by fostering the event and acquisition of FDFs,” says Jeroen Weites, Chairperson of the Administration Board of JSC Olainfarm.
The yr 2020 in an indication of transformation
In 2020, the Group’s income reached EUR 122 million, which is 11% lower than within the earlier yr. The mum or dad firm’s income in 2020 was EUR 92 million, guaranteeing the fulfilment of beforehand forecasted revenues. Turnover in the entire Group’s foremost markets, besides Russia, elevated in comparison with 2019. The Group’s largest market in 2020 was Latvia exhibiting consistency in operations, offering a 1% improve in comparison with 2019. Regardless of the worldwide influence of the Covid-19 disaster, Olainfarm Group was ready to make sure a steady provide of products in the entire Group’s working markets all year long. In 2020, quite a lot of strategically essential actions have been carried out, affecting the monetary outcomes of Olainfarm Group’s technique.
JSC Olainfarm expanded its advertising and marketing group and renewed its enterprise mannequin in Ukraine the place the prevailing authorized construction served as a foundation for altering the enterprise mannequin. The income in Ukraine has elevated by EUR 746 thousand when in comparison with 2019, and the general share of Ukraine within the Group’s income reached 9.4%.
The Group’s monetary outcomes for 2020 have been affected by a number of occasions within the Russian pharmaceutical market. In 2020, JSC Olainfarm established a subsidiary in Russia as a long-term funding, which has been offering JSC Olainfarm product promotion actions within the Russian pharmaceutical market since September of final yr. It ensures an much more correct perception into the Russian pharmaceutical market, adjusting JSC Olainfarm provide in line with buyer demand. A survey carried out within the Russian pharmaceutical market confirms the effectiveness of JSC Olainfarm overseas market technique – the popularity of the JSC Olainfarm model has elevated, thus offering a stable base for additional growth.
In 2020, a brand new medication verification and traceability system was launched in Russia, altering the same old supply schedules. The Russian ruble depreciated in opposition to the euro by 32%, which had an influence on the gross sales and internet revenue of Olainfarm Group.
On the finish of 2019, extra emergency deliveries of EUR 6 million have been made to Russia for consumption in 2020. This diminished gross sales in Russia in 2020 in comparison with 2019.
Consolidated EBITDA in 2020 is EUR 25 million, which is a 17% lower in comparison with the yr 2019. EBITDA is affected by each gross sales income in sure markets and adjustments in working fashions that lead to a special value construction than traditionally frequent.
Technique “Ahead 2020-2025”
Probably the most essential occasions of 2020 was the approval of JSC Olainfarm technique “Ahead”, outlining a transparent imaginative and prescient for the Group’s future operations. The technique intends on putting extra emphasis on the event of the core enterprise, supplementing and creating JSC Olainfarm’s product portfolio by each utilizing inside experience and buying new merchandise.
In 2020, JSC Olainfarm obtained the Russian Certificates of Good Manufacturing Follow (GMP), which confirms the corporate’s efforts for sustaining the standard system and complying with the Russian market, together with the necessities for manufacturing and high quality management of medicines.
Though the general influence of Covid-19 on Olainfarm Group is small, a number of the ongoing product growth initiatives have been postponed to 2021. As proposed by the European Medicines Company, medical trials throughout Covid-19 should not beneficial. Due to this fact, the quantity of Olainfarm Group’s capital investments in 2020 was EUR 9.2 million, not reaching the degrees forecasted. It must be emphasised that a number of the initiatives are carried out with the co-financing of the European Union (EU).
In the course of the reporting yr, Olainfarm proved itself as a dependable accomplice within the implementation of serious capital investments. In 2020 the modernization of the Chilly Station and distribution infrastructure happened, through which greater than EUR 2.7 million have been invested, together with co-financing from the European Cohesion Fund within the quantity of EUR 700 thousand. The implementation of this mission ensures JSC Olainfarm contribution to the inexperienced financial system and local weather neutrality applications, with the projected financial savings of 1486.563 MWh/yr and the discount of greenhouse fuel – CO2 emissions by 235.645 t/yr.
In 2020, the Group’s money move from operational actions was EUR 28.5 million, which has allowed it to considerably enhance the Group’s monetary stability by each securing mortgage repayments and paying EUR 4.5 million in dividends to shareholders. Olainfarm’s dividend coverage states that JSC Olainfarm yearly strives to pay shareholders a dividend of not less than 20% from the earlier yr’s audited revenue.
Forecast for 2021
For 2021, JSC Olainfarm as a mum or dad firm forecasted income of EUR 101 million. JSC Olainfarm consolidated income is deliberate at EUR 140 million, which is a rise of 14% if in comparison with 2020, in step with the five-year technique reaching double-digit progress YoY.
“Strengthening analysis and growth areas is a strategic precedence for 2021. We concentrate on two foremost instructions, firstly, R&D of latest merchandise, in addition to the acquisition of already developed merchandise, and secondly, investments within the modernization and digitization of know-how and manufacturing gear. In 2020, we concentrated our assets on the implementation of the technique and have been capable of considerably enhance the advertising and marketing method within the firm’s overseas markets. This can permit us to offer efficient and focused product promotion actions, increase the vary of merchandise in present markets and obtain the projected income this yr,” emphasizes Jeroen Weites, Chairperson of the Administration Board of JSC Olainfarm.
The general R&D prices are forecasted to be as a lot as 10% of JSC Olainfarm mum or dad firm’s income in 2021, which is in step with the objectives set inside the new technique. Investments of EUR 10.2 million are deliberate for these areas and might be directed to creating a brand new work atmosphere and buying gear, in addition to persevering with investments with the intention to place the prevailing product portfolio in new overseas markets. It’s projected that not all R&D investments might be capitalized, so a part of the analysis actions will have an effect on 2021 earnings.
In 2021, working investments for Olainfarm Group are deliberate at EUR 13.8 million. Along with investments in know-how and modernization of the manufacturing services, the Group’s priorities are to advertise digitization and automation initiatives. In 2021, it’s deliberate to introduce digital options for the development of customer support, in addition to modernize and digitize core enterprise processes. Firstly, it’s important to introduce the laboratory info administration system which can take a number of years to implement and can guarantee not solely enhancements within the effectivity of inside processes but in addition compliance with the rising regulatory necessities.
The corporate plans to shut the yr 2021 with a revenue of EUR 6.5 million, however the consolidated revenue of the Group in 2021 is forecasted within the quantity of EUR 8.6 million. JSC Olainfarm plans to attain indicators forecasted within the technique in 2025.
JSC Olainfarm, part of Olainfarm Group, is without doubt one of the main pharmaceutical firms within the Baltic States providing prime quality medication and chemical pharmaceutical merchandise. The enterprise technique “FORWARD” highlights the corporate’s foremost imaginative and prescient – to change into one of many TOP10 Central and Japanese European manufacturing firms by 2025.
With almost 50 years of experience, Olainfarm Group delivers sustainable healthcare services and products with added worth to sufferers in additional than 50 nations all around the world by way of its key subsidiaries – pharmaceutical firm JSC Olainfarm, meals complement & medical machine producer Silvanols, elastic & compression materials producer Tonus Elast, pharmacy chain Latvijas Aptieka and healthcare & diagnostics centres DiaMed & OlainMed.
Investor Relations Advisor of JSC Olainfarm
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