Oriola Corporation Stock Exchange Release
Strong growth in profitability excluding Swedish dose dispensing business
October-December 2023 highlights
- Invoicing increased by 6.2 % to
EUR 963.4 (906.9). On a constant currency basis, invoicing increased by 9.7% and wasEUR 994.7 million . -
Net sales increased by 1.7% to
EUR 386.6 (380.0) million. On a constant currency basis, net sales increased by 4.8% and wereEUR 398.2 million . -
Adjusted EBIT was
EUR 5.4 (2.9) million. On a constant currency basis, the adjusted EBIT wasEUR 5.1 million . -
EBIT was
EUR 5.2 (-7.1) million and included adjusting items ofEUR -0.2 (-10.0) million related to the sale of dose dispensing business inSweden . On a constant currency basis, EBIT wasEUR 5.0 million . -
Profit for the period totalled
EUR -2.8 (-8.1) million and earnings per share wereEUR -0.02 (-0.04).
Excluding Swedish dose business:
- In
October 2023 ,Oriola announced the sale of Svensk dos AB to ApotekstjänstSverige AB . The transaction is subject to the approval of theSwedish Competition Authority and is expected to be completed in the second quarter of 2024. -
Net sales were
EUR 384.1 (364.4) million. -
Adjusted EBIT was
EUR 6.2 (1.7) million.
Key events:
Oriola's refined strategy, new financial targets and new sustainability agenda were announced on31 October 2023 Oriola changes its segment reporting and the Group will have two reporting segments from1 January 2024
January-December 2023 highlights
- Invoicing increased by 0.6% to
EUR 3,587.7 (3,568.0) million. On a constant currency basis, invoicing increased by 5.7% and wasEUR 3,770.3 million . -
Net sales decreased by 2.9% to
EUR 1,493.8 (1,539.1) million. On a constant currency basis, net sales increased by 2.0% and wereEUR 1,569.5 million . -
Adjusted EBIT was
EUR 16.7 (19.7) million. On a constant currency basis, the adjusted EBIT wasEUR 17.1 million . -
EBIT was
EUR -5.3 (9.5) million and included adjusting items ofEUR -21.9 (-10.2) million mainly related to an impairment loss on goodwill in Dose dispensing cash generating unit. On a constant currency basis, EBIT wasEUR -4.9 million . -
Profit for the period totalled
EUR -20.7 (4.8) million and earnings per share wereEUR -0.11 (0.03).
Excluding Swedish dose business:
- Net sales were
EUR 1,475.7 (1,463.3) million. -
Adjusted EBIT was
EUR 19.5 (11.9) million.
Key figures | 2023 | 2022 | Change | 2023 | 20221,2 | Change |
EUR million | 10-12 | 10-12 | % | 1-12 | 1-12 | % |
Continuing operations | ||||||
Invoicing | 963.4 | 906.9 | 6.2 | 3,587.7 | 3,568.0 | 0.6 |
Net sales1 | 386.6 | 380.0 | 1.7 | 1,493.8 | 1,539.1 | -2.9 |
Adjusted EBIT2, 3 | 5.4 | 2.9 | 84.9 | 16.7 | 19.7 | -15.4 |
EBIT2 | 5.2 | -7.1 | 173.6 | -5.3 | 9.5 | -155.1 |
Adjusted EBIT % | 1.4 | 0.8 | 1.1 | 1.3 | ||
EBIT % | 1.3 | -1.9 | -0.4 | 0.6 | ||
Profit for the period | -2.8 | -8.1 | 65.9 | -20.7 | 4.8 | -534.9 |
Earnings per share, EUR, continuing operations | -0.02 | -0.04 | -0.11 | 0.03 | ||
Earnings per share, EUR, discontinued operations | - | -0.16 | - | -0.04 | ||
Net cash flow from operating activities4 | 22.9 | 36.1 | 9.6 | 77.9 | ||
Gearing, % 4 | -12.1 | -10.5 | ||||
Equity ratio, % 4 | 18.5 | 23.8 | ||||
Return on capital employed (ROCE), % 4 | -1.6 | 2.4 |
1 Comparative information has been restated due to a correction of an error in the elimination of net sales and cost of goods sold. The gross effect on the total correction is
2 Year 2022 Adjusted EBIT and EBIT have been changed retroactively and these items no longer include the share of result in joint venture (presented below EBIT).
3 Adjusting items are specified in note Adjusting items.
4 Comparative figures include continuing and discontinued operations.
In order to reflect the underlying business performance and to enhance comparability between financial periods,
Dividend proposal
The Board of Directors proposes to the Annual General Meeting that a dividend of
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
CEO Katarina Gabrielson :
In 2023 our focus was on strengthening our distribution business and our role as an infrastructure company in securing the availability of pharmaceuticals in society. We made strong progress in the distribution business throughout the year, by signing new distribution agreements and improving overall efficiency in operations.
In 2023,
Adjusted EBIT for the year 2023 was according to our expectations at
In Q4, net sales on a constant currency basis grew by 4.8% and were
During 2023 we continued to focus on developing our commercial and supply chain excellence, while ensuring profitability, efficiency and a collaborative culture. Major milestones of the year included the announcement of our refined strategy, new long-term financial targets and sustainability agenda. With our refined strategy, we are taking the next steps to build the new
In the joint venture company Kronans Apotek, integration projects are proceeding with several actions being implemented, albeit the benefits are not yet fully visible. Realised synergies were behind the plan while integration costs were below estimate. During the year, Kronans Apotek implemented a new organisation, harmonised its assortment, completed the rebranding of 191 pharmacies and optimised its network by closing some pharmacies, resulting in more than 500 pharmacies operating today under one brand. In addition, Kronans Apotek continued to invest in its omni-channel operating model by strengthening its e-commerce capabilities. Kronans Apotek is today the biggest pharmacy chain in
At
At the start of 2024, we announced the strategically important investment to renew
In addition, we are initiating an in-depth investigation of the different options for developing our logistics operations in
As we begin a new year, I am very excited about the opportunities we have ahead of us. We are well placed to be a highly efficient company in our distribution business, to grow our share of the high-margin wholesale and advisory businesses, and to further develop our customer value proposition to deliver enhanced customer experience.
Throughout the year, our people have shown strong engagement to collaborate and grow with our customers and partners, and I am confident that we will continue on this path. With the refined strategy in place, we have a deeper understanding of shared priorities as well as greater clarity and alignment.
I want to extend my warmest thanks to everyone at
Disclosure procedure
This
Analyst and investor meeting at
Next financial reports
Further information:
CFO
email: timo.leinonen@oriola.com
VP, Communications and Sustainability
email: mikael.wegmuller@oriola.com
Distribution:
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https://mb.cision.com/Main/15459/3929835/2609240.pdf
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