In February Olainfarm Group established a subsidiary in Russia; Group’s revenues in January were EUR 7.6 million

JSC Olainfarm has taken further steps towards a sustainable sales growth in the future, in February the Group established a subsidiary in Russia. With the aim to facilitate advertising and distribution of products, market research and other sales related functions, which previously were provided by third parties. Such a step will allow to better manage sales processes and have better control of the expenses. For local partners this is a strong signal that the Russian market is important for the Olainfarm Group and has plans to be in this market in the long term.

Consolidated sales in January reflect what has been previously forecasted and show that the Latvian market shares were 45%, and in absolute figures were at the same level as the year before. In the Central Asian countries revenues increased by 51%, reaching EUR 0.8 million. Sales substantially improved in the Caucasian region and in other countries by 160% and 44%, respectively. However, there was a decline in Belarus by 11% and in the EU countries by 44%. There were almost no sales in Russia and the Ukraine due to a large volume of goods that were shipped at the end of 2019, which also included goods for January.

“Overall, the January results reflect what we have previously forecasted, deliveries to major markets already increased at the end of last year. In January of last year, the turnover was unusually high as the best-selling products were approaching the end of the registration renewal period. In February of 2020, we expect the sales to return to the budgeted levels for Q1 2020, so the first quarter results will be as expected. We have a clear vision on how to further grow sales to meet our goals set for 2020, and I am confident the leadership will live up to this. I am also proud that the implementation and audit of the project “Introduction of experimental technology for manufacturing of new products at JSC Olainfarm” in collaboration with the European Regional Development Fund was successfully completed this year. Altogether 253 components of an experimental production line were delivered and installed for a total value of EUR 6.4 mln. Innovation is critical for the manufacturing process of JSC Olainfarm in order to build a sustainable future with new products we are anticipating to launch as part of Olainfarm’s growth strategy,” says Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.