Embed Size (px)
Citation preview
WEBINAR PRESENTATION3rd QUARTER 2019
11 December 2019
3rd QUARTER
Sales reached
An increase by compared to Q3 2018
Gross sales by pharmacies
Gross sales by Silvanols
Gross sales by Tonus Elast and Elast Medical
SALES IN the 3rd QUARTER
EUR 32.4 million
17%
= EUR 6.2 million
= EUR 1.2 million
= EUR 2.6 million1Q 2Q 3Q 4Q
-
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
1Q 2Q 3Q 4Q
Sales breakdown by quarter, '000 EUR
2012 2013 2014 2015 2016 2017 2018 2019
Sales reached
An increase by compared to 9M 2018
Gross sales by pharmacies
Net sales by Silvanols
Net sales by Tonus Elast and Elast Medical
SALES IN 9 months of 2019 – a new all-time record
EUR 98.8 million
10%
= EUR 19.2 million
= EUR 4.2 million
= EUR 7.1 million
-
20
40
60
80
100
120
2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales in first nine months, mil. EUR
3Q
2Q
1Q
EBITDA in the 3rd quarter reached EUR 9
million, +134% y-o-y
EBITDA in 9 months of 2019 reached
increasing by 83%
TTM EBITDA reached
TTM EBITDA margin further improved to 24.1%,
from 20.8% from the last quarter
CONTINUING GROWTH OF EBITDA AND MARGIN
EUR 26.3 million
EUR 32.2 million
13.4% 14.0% 14.5%
16.3%
19.8%20.8%
24.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Q1 2018 Q2 2018 Q3 2018 Q4 2018 1Q 2019 2Q 2019 3Q 2019
Group's TTM EBITDA and EBITDA margin
TTM EBITDA, '000 EUR EBITDA margin, %
Net profit of EUR 7 million, which is an
increase by
Net profit for 9 months of 2019 was
, the largest in
Group’s history by far
STRONG NET PROFIT IN THE 3RD QUARTER OF 2019
317% y-o-y
EUR 19.2 million
€ -
€ 2 000
€ 4 000
€ 6 000
€ 8 000
€ 10 000
€ 12 000
€ 14 000
€ 16 000
€ 18 000
€ 20 000
2011 2012 2013 2014 2015 2016 2017 2018 2019
First nine months net profit, '000 EUR
3Q
2Q
1Q
Main factors contributing to the increase of
net profit:
Strong improvement in gross profit due to
higher gross margin (61.1%, from 60.0%)
Decline in marketing expenses (from EUR
26.7 to 22.4 million)
Gains from favourable changes in Russian
rouble rate (~EUR 3.5 million)
Increase in administrative expenses from EUR
17.1 to 20.5 million negatively impacted net
profit and was related to a rise in salaries and
R&D expenses.
FACTORS AFFECTING NET PROFIT
Share of sales in TOP4 countries
reached
Latvia’s share increased and Russia’s
share lost
Share of sales in the Ukraine decreased
by and was 1H, 2019
SALES BY COUNTRIES, IN 9 months of 2019
78%
1pp
1pp 8%
Russia29%
Latvia29%
Belarus12%
Ukraine8%
Kazakhstan 3%
Uzbekistan2%
Netherlands2%
Germany2%
Tajikistan1%
Italy1%
Other11%
SALES BREAKDOWN BY COUNTRIES, 9M 2019
Nine out of ten major markets are growing
Largest growth in monetary terms added by
Latvia (EUR 3m), Russia (EUR 2.6m), the
Netherlands (EUR 1.2m) and Belarus (EUR 0.9m)
Largest growth in relative terms provided by the
Netherlands (188%), Uzbekistan (50%),
Italy (40%) and Tajikistan (18%)
Sales in the Ukraine declined insignificantly (EUR
0.06m) or less than 1%
GROWTH DRIVERS: COUNTRIES
€ -
€ 5 000
€ 10 000
€ 15 000
€ 20 000
€ 25 000
€ 30 000
Tho
usa
nd
s
Sales to Top 10 countries, 9M 2019 vs 9M
2018, '000 EUR
9M 2019 9M 2018
Noofen’s share rose by 1pp y-o-y and it
remained
Sales of Neiromidin were flat and
Furamag/Furasol lost 1pp, which makes a
total share of the TOP 3 products equal to
55%
Etacizin and PASS increased shares y-o-y
while Adaptol’s share declined
SALES BY PRODUCTS, IN 9 months of 2019
THE BEST SELLING PRODUCT
Noofen20%
Neiromidin19%
Furamag/Furasol16%
Adaptol12%
Etacizin12%
Fenkarol7%
PASS3%
Furagin3%
Furadonin3%
Remantadine1%
Other4%
OLAINFARM TOP PRODUCTS, 9 MONTHS 2019
*Final dosage forms only
Out of the products nine are growing;
The biggest growth in monetary terms added by PASS and Noofen (1.4m each) and Neiromidin(1.2m);
The biggest growth in relative terms provided by
PASS (233%), Remantadine (40%) and Furagin(19%).
GROWTH DRIVERS: PRODUCTS
TOP 10
-
2 000
4 000 6 000
8 000 10 000 12 000
Bestselling Products, 9M 2019 vs 9M
2018, EUR '000
9M 2019 9M 2018
Leverage ratio continued to decline in
the 3rd quarter of 2019
Main contributing factors were:
Improvement of TTM EBITDA by EUR 5.3m;
Increase in cash position by EUR 0.8m;
Decline in interest bearing liabilities by EUR
1.8m
Strong financial positions will help to
finance future R&D
BORROWINGS
2.69
1.921.76
1.852.05
2.40 2.482.68
1.52 1.41 1.411.22
1.10
0.82
0.56 0.39
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 1Q 2019 2Q 2019 3Q 2019
Group's DSCR and Net liabilities / EBITDA
DSCR Net liabilities / EBITDA
UPDATE ON RECENT
EVENTS
Key principles:
stability - target payout ratio of 20% from the
previous year’s net profit of JSC Olainfarm
balance between payout amount, cashflows
and long-term requirements of the Group
transparency – disclose reasons for
recommending specific amount
DIVIDEND POLICY
POLL QUESTION
Investments of EUR 1.3 m (+74% y-o-y)
made during the 9 months of 2019 in
pre-clinical and clinical trials
A global pharmaceutical and healthcare
consultancy has been hired to analyze
existing product portfolio and to advise on
specific strategic initiatives.
INVESTMENTS IN RESEARCH AND DEVELOPMENT
In May, 2019, the Supervisory Council decided to hire
professionals with experience in global pharmaceutical
industry who could lead transformation processes at the
Olainfarm Group
Amrop Latvia, a top-level recruitment company, was hired
to assist in the selection process:
More than 20 candidates in ten European countries were
approached
Management skills, professional experience, type of personality and
reputation were key criteria
Supervisory Council interviewed seven candidates and chose to
invite Mr. Jeroen Weites as Olainfarm Group CEO and Mrs. Elena
Bushberg as JSC Olainfarm CEO
STRENGTHENING THE MANAGEMENT TEAM
Primary focus – developing and implementing the Group’s strategy
Between 2014 and 2019 – Head of South Europe region (14 countries)
followed by Head of North Europe Region (11 countries) of General
Medicines at Sanofi, where his key task was to ensure successful
transformation processes for the company.
Between 2010 and 2014 – Senior Director at Sanofi Genzyme, France,
responsible for implementing, managing and advising on new
European markets as well as developing launch strategies in Japan and
China.
More than 30 new pharmaceutical products have been successfully
introduced in international markets under his leadership.
Mr. Weites holds a Master's degree in Economics from the University of
Amsterdam
JEROEN WEITES – CHAIRMAN OF THE BOARD, CEO
Mrs. E.Bushberg is the CEO of JSC Olainfarm
Primary focus:
- transformation of business processes to raise productivity and
effectiveness of manufacturing,
- sales and marketing operations in order to achieve sustainable
organic growth
Her professional experience adds up to over 25 years at international
pharmaceutical companies such as Schering-Plough, MSD and
Abbott Laboratories. Since 2015 E. Bushberg has served as the
General Manager of Abbott’s Veropharm, one of Russia's leading
manufacturers of pharmaceuticals and medical devices.
She holds a professional master's degree (Global Executive MBA)
and a Certificate in Healthcare Sector Management from The Fuqua
School of Business, Duke University, USA
ELENA BUSHBERG – MEMBER OF THE BOARD
The letter has been received from Register of Enterprises of the Republic
of Latvia that shareholder Ltd. “OLMAFARM” requested to convene an
extraordinary general meeting to:
• Recall of the Council and Election of the new Council;
• Recall of the Auditing committee and election of the new Auditing
committee.
Record date – 16 January 2020;
Registration of shareholders will take
place on the day of the meeting from
10:00 until 10:45 on the venue;
Shareholder meeting will start at 11:00.
EGM ON 24 JANUARY 2020
Q&A SESSION
Janis DubrovskisInvestor Relations Advisor
(+371) 67 013 705
www.olainfarm.com
Rupnicu iela 5, Olaine, LV-2114, Latvia
