Oriola Corporation Stock Exchange Release 18 July 2025 at 8.30 a.m. EEST
Oriola Corporation's Half-Year Report January-June 2025
Strong partnerships drive Distribution growth and profitability
April-June 2025 financial highlights
· Invoicing increased by 12.6 % to EUR 1,072.6 (952.2) million.
· Net sales increased by 12.4% to EUR 493.9 (439.4) million.
· Sales margin increased by 5.6% to EUR 42.2 (40.0) million.
· Adjusted EBITDA was EUR 8.1 (8.0) million.
· EBITDA was EUR 1.6 (8.6) million and included adjusting items of EUR -6.5
(0.5) million mainly related to the implementation cost of the ERP investment
and to the sale of dose dispensing business in Sweden.
· Profit for the period totalled EUR -5.6 (2.0) million and earnings per share
were EUR -0.03 (0.01).
· Free cash flow was EUR -4.2 (18.5) million.
· The sale of Svensk dos AB to Apotekstjänst Sverige AB was completed on 1
April 2025.
January-June 2025 financial highlights
· Invoicing increased by 11.4 % to EUR 2,072.8 (1,860.6) million.
· Net sales increased by 15.5% to EUR 940.9 (814.6) million.
· Sales margin increased by 4.8% to EUR 83.5 (79.7) million.
· Adjusted EBITDA was EUR 15.6 (15.7) million.
· EBITDA was EUR 7.5 (15.3) million and included adjusting items of EUR -8.1 (
-0.4) million mainly related to the implementation cost of the ERP investment
and to the sale of dose dispensing business in Sweden.
· Profit for the period totalled EUR -11.0 (-0.3) million and earnings per
share were EUR -0.06 (-0.00).
· Free cash flow was EUR 20.8 (8.1) million.
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Key figures 2025 2024 Change 2025 2024 Change 2024
EUR million 4-6 4-6 % 1-6 1-6 % 1-12
Invoicing 1,072.6 952.2 12.6 2,072.8 1,860.6 11.4 3,771.8
Net sales 493.9 439.4 12.4 940.9 814.6 15.5 1,679.7
Sales margin 42.2 40.0 5.6 83.5 79.7 4.8 159.8
Adjusted EBITDA[1] 8.1 8.0 0.3 15.6 15.7 -0.7 33.4
EBITDA 1.6 8.6 -81.8 7.5 15.3 -50.8 27.2
Adjusted EBITDA % 1.6 1.8 1.7 1.9 2.0
EBITDA % 0.3 2.0 0.8 1.9 1.6
Profit for the -5.6 2.0 -383.2 -11.0 -0.3 -3,239.9 -20.1
period
Earnings per share, -0.03 0.01 -0.06 -0.00 -0.11
EUR
Net cash flow from -8.0 17.8 22.4 6.5 38.7
operating
activities
Free cash flow -4.2 18.5 20.8 8.1 43.4
Gearing, % -41.4 -8.1 -28.0
Equity ratio, %[ ] 12.5 17.2 15.4
Return on capital -4.2 7.3 5.4
employed (ROCE), %
1 Adjusting items are specified in note Adjusting items on page 19.
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 2025
In 2025, the pharmaceutical distribution market is expected to continue to grow.
Value growth is expected to be driven by high-value pharmaceuticals and products
requiring advanced logistics. The uncertainty in the geopolitical environment
remains, and the availability issues of certain pharmaceuticals are expected to
continue.
Consumer confidence is expected to remain weak, which may have an impact on the
wholesale market. Typically in economic uncertainty, consumers tend to shift
purchases to low-price categories.
For 2025, Oriola expects the adjusted EBITDA to increase from the previous year
(2024: EUR 33.4 million). The expectation of improved adjusted EBITDA is based
on growing markets and strategy execution.
From the start of 2025, Oriola introduced adjusted EBITDA (earnings before
interest, taxes, depreciation and amortisation) as a new alternative performance
measure. EBITDA is widely used by management and investors when assessing the
profitability of a company and cash flow generation.
CEO Katarina Gabrielson:
In the second quarter, net sales grew and sales margin improved, and the
underlying distribution business remained strong. In the operating environment,
we continue to see overall uncertainty which is reflected in continued weak
consumer confidence. On the other hand, the overall pharmaceutical distribution
market saw good growth.
In the second quarter, net sales grew by 12% to EUR 494 million, driven by both
Distribution and Wholesale segments. Sales margin was EUR 42.2 (40.0) million,
with improvement supported by the Distribution segment. The adjusted EBITDA was
EUR 8.1 (8.0) million, including an increase in operational expenses from the
comparison period. Operational expenses were higher due to an increase in
personnel, temporary storage capacity and high peaks in orders. Freight costs
were at the previous year's level despite higher volumes, reflecting a good
development in the filling rate.
In the Distribution segment, net sales grew by 11% to EUR 398 million, supported
by growing sales from existing portfolio, newly onboarded customers, service
sales and market growth. Adjusted EBITDA increased to EUR 8.3 (6.1) million,
driven by net sales growth, offsetting higher operating expenses. In the second
quarter, we completed the onboarding of a new cross-market customer, supporting
results for the rest of the year. The deregulation of the Finnish pharmacy
market took a step forward with a new legislative proposal, indicating the width
of the proposed changes in the first phase. We have been preparing for this in
recent months, for instance by building our capabilities, such as creating a
distribution model compliant with good distribution practice (GDP) for retail.
In the Wholesale segment, net sales grew by 18% to EUR 96 million. Growth was
primarily driven by the wholesale business in Sweden, supported by good
development in parallel import of weight-loss medicines. Overall sales growth in
Finland remained modest. However, we achieved growth in sales to veterinarians,
demonstrating our continued focus on customer centricity and our strong position
in the animal health market. Adjusted EBITDA declined to EUR 2.1 (3.1) million.
The fall in profitability was related to higher operating expenses due to
planned increase in personnel and an unfavourable product mix due to parallel
import. In the second quarter, the sale of seasonal products such as sun care
and allergy products, and insect repellents, has been negatively impacted by the
weather.
In advisory business, we continued to see positive development with double-digit
growth in digital and data services, showing the need for high-quality market
data to support customers in their decision-making. We also completed the
integration of the recently acquired MedInfo in Denmark, which strengthens our
Nordic footprint in medical information and patient support programmes.
We reached an important milestone with the approval of Oriola's science-based
climate targets by the Science Based Targets initiative (SBTi). These targets,
including ambitious near-term goals and a commitment to reach net-zero emissions
across our value chain by 2050, reflect our dedication to responsible business
and long-term climate action.
In the joint venture company, Kronans Apotek, the result was burdened by high
costs in the second quarter. The e-commerce reached high sales with growth of
44%, further improving the e-commerce footprint, while the brick-and mortar
operation saw flat sales. The overall sales growth resulted in Kronans Apotek
improving its market share at the end of the period compared with the end of the
first quarter. As of 1 April 2025, Kronans Apotek is now merged into one legal
entity and during the second quarter the roll-out of the common ERP was started.
Our strategic investment to renew Oriola's ERP (enterprise resource planning)
and WMS (warehouse management systems) is progressing according to plan. The
first deployment, which is planned for a part of the operations in Sweden, is
scheduled towards the end of this year. Ahead of this we have started the
testing phase.
I am pleased with our progress in the second quarter, particularly the continued
net sales growth and sales margin improvement, but there is still room for
improvement in our profitability. In the second half of the year, we will focus
on driving sales growth, further strengthening our sales margin, and
implementing measures to manage our cost base. We have already implemented
efficiency improvements, which provide more stable operations, and we continue
with strict cost control across the company.
I would like to extend my sincere thanks to everyone at Oriola for their
achievements and continued commitment to deliver on our strategic goals.
Disclosure procedure
This stock exchange release is a summary of Oriola Corporation's Half-Year
Report January-June 2025. 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 report
at a live webcast meeting today at 10.00 a.m. Join the meeting:
https://oriola.events.inderes.com/q2-2025
Financial reporting in 2025
Oriola will publish the Interim Report January-September 2025 on 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