JSC “Olainfarm”								29.11.2005.



Results of activity of JSC “Olainfarm” in the nine months of 2005 

	

Management of Joint Stock Company „Olainfarm” has combined financial results of the 

company’s activity in the three quarters of year 2005, and approved an unaudited 

financial report for 9 month on November 29th. 

	Results of the nine moth activity in 2005 indicate that JSC „Olainfarm” has 

successfully achieved plans set for production and sale, but prognoses for some 

positions might even be improved. 

Turnover of the company in the first three quarters of year 2005 achieved Ls 8,4 

millions (11,96 millions EUR). It by 44% overruns the turnover of the company for 

the same period the previous year. The turnover of the company for the mentioned 

period comparing to the same period of year 2004 has grown by 2,55 millions of lats 

(3,62 millions EUR). The rise of sales volumes has been achieved despite the usual 

stagnation of the pharmacy market in the summer period. The main sales markets for 

the products remained the same. In developing the direction of chemical products 

JSC „Olainfarm” has started to supply its products to India, China and South Korea.

 Several shipments of chemical half-products have been made to those countries for 

the total amount of 89,66 thousands of lats (127,58 thousands EUR). It should be

 mentioned that manufacturing process for these products is expensive and requires 

substantial high-technlogy scientific investment. This is why these products are not 

produced in those countries and JSC „Olainfarm” has already received orders for the 

next year as well. After five years interruption, due to unstable situation on the 

local pharmaceutical market, JSC „Olainfarm” resumed deliveries of medication to 

Azerbaidzan. In cooperation with Lithuanian drug manufacturer Sanitas, JSC „Olainfarm”

 has started to deliver medication Ranitidine for the Lithuanian market. 

In July 2005 JSC „Olainfarm” has sold the total amount of shares of closed joint stock 

company „Aroma-Petersburg” (Russia), due to the fact that activity of the company had 

a negative impact on the financial indices of the concern.

Due to high demand for anti-virus and anti-cold medications in the beginning  of the

 fall season as well as owing to registration of the company’s medications in the new 

markets, the Management board of JSC „Olainfarm” has increased year’s sales and 

turnover prognosis from 12 millions of lats (17,07 millions EUR) up to 13 millions of 

 lats (18,5 millions EUR). 

Manufacturing of products in the first three quarters of 2005 has been executed in

 accordance with plan. The total amount of the manufactured output for the reporting 

period by 24% supercedes the corresponding indices of the first nine month in 2004.

The other financial results for the first nine month of year 2005 are valued positively.

 Contrary to losses of the same period the previous year, the first 9 month of 2005 

have been concluded by the company with the profit of Ls 0,292 millions (0,415 millions

 EUR). The index of earning per share (EPS) for the corresponding period is Ls 0,0285 

(0,041 EUR) per one share, contrary to Ls -0,0152 (-0,0226 EUR) on the same period of 

the previous year.

Liquidity indices comparing to the corresponding period of the previous year do not

 differ substantially in quantity, but a difference in quality is obvious. If 

comparingly high common liquidity index in the corresponding period of year 2004 could

 be explained by high proportion of accounts receivables, then in 2005 it can be 

explained by growth of the remainder of the provisions connected to the increase of 

turnover of the company. Solvency ratio, comparing to the corresponding period of 

the same year, has not changed substantially. It’s value is positive and equals to 1,13. 

Business activity index is improving all the time when collection of debtors’ debts is 

improving. For example, index of debtors’ turnover has reduced from 249 days in 2004 to

 176 days. Profitability indices are positive as well, unlike negative results of the

 previous year. Net turnover profitability for the reporting period amounts to 3,48,

 but self capital profitability – 3,09.



Prepared by the Board of JSC “Olainfarm”

in Olaine, on November 29th, 2005



Liaison person:

Victorija Zhuka-Nikulina

Head of legal department

JSC „Olainfarm”

Phone 7013 870, 9473980

Fax 7013 777

e-mail: vzuk@olainfarm.lv