Oriola Corporation Stock Exchange Release
Sales growth and improved profitability
January-
- Invoicing increased by 5.8 % to
EUR 908.4 (858.3). On a constant currency basis, invoicing increased by 6.3% and wasEUR 912.4 million . -
Net sales increased by 4.1% to
EUR 375.1 (360.4) million. On a constant currency basis, net sales increased by 4.5% and wereEUR 376.8 million . -
Adjusted EBIT was
EUR 4.0 (3.5) million. On a constant currency basis, the adjusted EBIT wasEUR 4.0 million . -
EBIT was
EUR 3.7 (3.5) million and included adjusting items ofEUR -0.3 (-0.0) million mainly related to the sale of dose dispensing business inSweden . On a constant currency basis, EBIT wasEUR 3.7 million . -
Profit for the period totalled
EUR -2.3 (1.1) million and earnings per share wereEUR -0.01 (0.01).
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 a decision is expected in the second quarter of 2024. -
Net sales were
EUR 372.2 (351.0) million. -
Adjusted EBIT was
EUR 4.5 (3.9) million.
Key events:
Oriola's reporting segments from1 January 2024 are Distribution and Wholesale-
On 10 January,
Oriola announced the investment in ERP and warehouse management as part of the refined strategy to enhance efficiency and operational excellence
Key figures | 2024 | 2023 | Change | 2023 |
EUR million | 1-3 | 1-3 | % | 1-12 |
Invoicing | 908.4 | 858.3 | 5.8 | 3,587.7 |
Net sales | 375.1 | 360.4 | 4.1 | 1,493.8 |
Adjusted EBIT1 | 4.0 | 3.5 | 13.0 | 16.7 |
EBIT | 3.7 | 3.5 | 6.2 | -5.3 |
Adjusted EBIT % | 1.1 | 1.0 | 1.1 | |
EBIT % | 1.0 | 1.0 | -0.4 | |
Profit for the period | -2.3 | 1.1 | -311.3 | -20.7 |
Earnings per share, EUR, continuing operations | -0.01 | 0.01 | -0.11 | |
Net cash flow from operating activities | -11.3 | -42.6 | 9.6 | |
Gearing, % | -6.2 | 8.7 | -12.1 | |
Equity ratio, % | 17.3 | 22.8 | 18.5 | |
Return on capital employed (ROCE), % | 5.5 | 4.0 | -1.6 |
1 Adjusting items are specified in note Adjusting items.
In order to reflect the underlying business performance and to enhance comparability between financial periods,
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
We had a good start of the year with net sales growing and profitability improving from the previous year. The pharmaceutical distribution market continued a steady growth and we saw the overall operating environment somewhat stabilising from last year, although consumer confidence remained weak.
In the first quarter,
From the start of this year, we have two reporting segments - Distribution and Wholesale. This change in reporting reflects our strategy and also provides better visibility into the financial development of our business.
In the Distribution segment, which includes pharmaceutical logistics and dose dispensing services, net sales grew by 4% to
The Wholesale segment includes the wholesale of traded goods and OTC products, parallel import, special-licensed medicines as well as advisory services. Net sales in the Wholesale segment grew by 5% to
The implementation of our refined strategy, launched at the end of last year, has progressed well. A key milestone in January was the announcement of the investment to renew
In the joint venture company, Kronans Apotek, e-commerce continued to grow steadily, while the weaker customer flow in the brick-and-mortar compared with Q1 2023 reduced volumes, market share and adjusted EBIT. Kronans Apotek continues to develop its customer experience and product range, both in physical and digital stores. The focus remains on long-term profitability improvement, integration activities and business development. In 2024, Kronans Apotek's profitability is expected to be positively impacted by new legislation on pharmaceutical compensations. On 17 April, Kronans Apotek announced the appointment of Tomas Rupšys as the new CEO. Kronans Apotek is an important strategic partner for us, and we will actively support its value creation as a major shareholder. Kronans Apotek expects its full profit potential to materialise by the end of 2025.
I am very pleased with the positive beginning to the year at
Disclosure procedure
This
Analyst and investor meeting at
Financial reporting in 2024
18 July 2024 : Half Year Financial Report 1-6/202430 October 2024 : Interim Report 1-9/2024
Further information:
CFO
email: timo.leinonen@oriola.com
VP, Communications and Sustainability
email: mikael.wegmuller@oriola.com
Distribution:
Key media
https://news.cision.com/oriola-oyj/r/oriola-corporation-s-interim-report-january-march-2024,c3967258
https://mb.cision.com/Main/15459/3967258/2757889.pdf
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