Oriola Corporation Stock Exchange Release 30 October 2024 at 8.30 a.m.
Oriola Corporation's Interim Report January-September 2024
Improved profitability
July-September 2024 highlights
· Invoicing increased by 7.7 % to EUR 927.7 (861.7) million.
· Net sales increased by 18.6% to EUR 424.4 (357.9) million.
· Adjusted EBIT was EUR 5.5 (4.4) million.
· EBIT was EUR 0.2 (-17.1) million and included adjusting items of EUR -5.3 (
-21.6) million mainly related to the implementation costs of the ERP investment.
· Profit for the period totalled EUR -1.9 (-20.2) million and earnings per
share were EUR -0.01 (-0.11).
Excluding Swedish dose business:
· At the end of April, the Swedish Competition Authority announced its
decision to prohibit the sale of Svensk dos AB due to negative effects on
competition in the market. Apotekstjänst Sverige AB has appealed the decision.
The appeal process can take up to 6 months. Oriola will communicate on the next
steps in Q4. Oriola announced the sale of Svensk dos AB to Apotekstjänst Sverige
AB in October 2023.
· Net sales were EUR 420.6 (355.9) million.
· Adjusted EBIT was EUR 5.4 (5.2) million.
January-September 2024 highlights:
· Invoicing increased by 6.2% to EUR 2,788.3 (2,624.4) million.
· Net sales increased by 11.9% to EUR 1,239.0 (1,107.3) million.
· Adjusted EBIT was EUR 15.3 (11.3) million.
· EBIT was EUR 9.6 (-10.5) million and included adjusting items of EUR -5.7 (
-21.8) mainly related to the implementation cost of the ERP investment.
· Profit for the period totalled EUR -2.3 (-17.9) million and earnings per
share were EUR -0.01 (-0.10).
Excluding Swedish dose business:
· Net sales were EUR 1,228.9 (1,091.6) million.
· Adjusted EBIT was EUR 15.5 (13.3) million.
[][]
Key figures 2024 2023 Change 2024 2023 Change 2023
EUR million 7-9 7-9 % 1-9 1-9 % 1-12
Invoicing 927.7 861.7 7.7 2,788.3 2,624.4 6.2 3,587.7
Net sales 424.4 357.9 18.6 1,239.0 1,107.3 11.9 1,493.8
Adjusted EBIT[1] 5.5 4.4 24.7 15.3 11.3 35.2 16.7
EBIT 0.2 -17.1 101.1 9.6 -10.5 191.3 -5.3
Adjusted EBIT % 1.3 1.2 1.2 1.0 1.1
EBIT % 0.0 -4.8 0.8 -0.9 -0.4
Profit for the -1.9 -20.2 90.4 -2.3 -17.9 87.3 -20.7
period
Earnings per share, -0.01 -0.11 90.4 -0.01 -0.10 87.3 -0.11
EUR
Net cash flow from -5.3 10.1 1.2 -13.3 9.6
operating
activities
Gearing, % -4.6 -0.9 -12.1
Equity ratio, %[ ] 17.7 19.3 18.5
Return on capital 4.9 -4.2 -1.6
employed (ROCE), %
1 Adjusting items are specified in note Adjusting items on page 17.
In order to reflect the underlying business performance and to enhance
comparability between financial periods, Oriola discloses certain performance
measures of historical performance, financial position and cash flows, as
permitted in the “Alternative performance measures” guidance issued by the
European Securities and Markets Authority (ESMA). These measures should not be
considered as a substitute for measures of performance in accordance with the
IFRS. The calculation methods of these measures are provided under Key financial
indicators in this interim report.
Outlook for 2024
In 2024, the pharmaceutical distribution market is expected to continue to grow.
A continuation of a weak consumer confidence might impact the wholesale market
development. The recent overall inflationary environment and related cost
pressures may have an impact on Oriola's profitability.
Oriola expects the adjusted EBIT, excluding the dose dispensing business in
Sweden, for the year 2024 to increase from the adjusted EBIT for 2023 (EUR 19.5
million).
CEO Katarina Gabrielson:
Our solid performance since the start of this year continued in the third
quarter, with increased net sales and profitability compared with the previous
year. Also, in the pharmaceutical distribution market, the steady growth
continued driven by a high demand for high-value pharmaceuticals.
Oriola's net sales in Q3 grew to EUR 424 million, driven by the Distribution
segment. Adjusted EBIT increased from the previous year to EUR 5.5 (4.4)
million. This improvement was supported by net sales growth and lower freight
costs compared with the previous year. When excluding the impact of the Swedish
dose dispensing business, the adjusted EBIT improved to EUR 5.4 (5.2) million.
Oriola's financial position remained strong.
In the Distribution segment, net sales grew by 23% to EUR 351 million, largely
due to a customer shifting from consignment to our inventory. Organic growth was
5%, driven by higher market volumes and price increases. Profitability improved
to EUR 5.0 (3.5) million, supported by net sales growth and lower costs compared
with last year. Our market share was stable in Finland, while we saw a decline
in market share in Sweden. During the quarter we signed new and renewed existing
distribution agreements. One of the new agreements is with a cross-market
customer, with volumes starting in Q1 2025. Additionally, we entered the optical
sales channel in Sweden, where we see opportunities also for the wholesale
business.
In the Wholesale segment, net sales remained at EUR 74 million, the same as last
year. While the Finnish wholesale business was stable, volumes in the Swedish
wholesale business declined. Profitability was at last year's level. As part of
our strategy to grow the wholesale business, we added new products and suppliers
to our portfolio. We gained new listings and introduced new products in the
Finnish market, and introduced our own brand, Dexal, in Sweden.
Since launching our refined strategy a year ago, we have made steady progress
towards becoming the leading specialist in wholesale of pharmaceuticals and
health products. This reflects the full commitment and dedication of our
management team to our strategy and long-term targets. Our strategic investment
to renew our ERP (enterprise resource planning) and WMS (warehouse management
systems) is proceeding according to plan. Through this project we have reviewed
and harmonised processes to ensure consistency and common ways of working across
the company.
For the second consecutive year, we retained our gold sustainability rating in
the 2024 EcoVadis assessment. This important achievement recognises our ongoing
commitment to integrating sustainability into our daily operations and
continuously improving performance. In September, we committed to set near- and
long-term company-wide emission reductions in line with science-based net-zero
with the SBTi (Science Based Target initiative). We expect the targets to be
validated in 2025.
In the joint venture company, Kronans Apotek, e-commerce sales grew with double
digits in Q3, improving the e-commerce footprint. The weaker customer flow in
the brick-and-mortar operation resulted in flat sales compared with a year ago.
Kronans Apotek is an important strategic partner for us, and we will actively
support its value creation as a major shareholder.
I am pleased with our solid performance in the third quarter. These results
reflect the dedication of our people and the ongoing support of our valued
customers and partners. As we move towards the end of this year, I want to thank
everyone at Oriola for their work and commitment.
Disclosure procedure
This stock exchange release is a summary of Oriola Corporation's Interim Report
January-September 2024. The complete report is attached to this release in pdf
format and is also available on Oriola's website at www.oriola.com.
Analyst and investor meeting at 10.00 a.m.
Oriola's CEO Katarina Gabrielson and CFO Mats Danielsson will present the Q3
Interim Report at a live webcast meeting today at 10.00 a.m. Join the meeting:
https://oriola.videosync.fi/q3-2024
Next financial report
Oriola Corporation will publish its Financial Statements Release for 1
January-31 December 2024 on Tuesday 4 March 2025.
Publication of the Annual Report
Oriola Corporation will publish its Annual Report 2024 during week 11 (latest 12
March 2025).
Financial calendar 2025
· Annual General Meeting on Wednesday 2 April 2025
· Interim Report 1-3/2025 on Tuesday 29 April 2025
· Half-Year Report 1-6/2025 on Friday 18 July 2025
· Interim Report 1-9/2025 on Thursday 30 October 2025
Further information:
Mats Danielsson
CFO
email: mats.danielsson@oriola.com
Mikael Wegmüller
VP, Communications and Sustainability
email: mikael.wegmuller@oriola.com
Distribution:
Nasdaq Helsinki Ltd
Key media