ORION CORPORATION
HALF-YEAR FINANCIAL REPORT 1-6/2021
Orion Group Half-Year Financial Report 1-6/2021
This is a summary of Orion’s Half-Year Financial Report 1-6/2021. The complete report is attached to this stock exchange release and is available at https://www.orion.fi/en/Orion-group/investors/financial-reviews-and-presentations/
- Net sales totalled
EUR 524 million (EUR 572 million in 1–6/2020). - Operating profit was
EUR 146 (181) million. - Profit before taxes was
EUR 145 (180) million. - Equity ratio was 68% (65%).
- ROCE before taxes was 36% (44%).
- ROE after taxes was 32% (38%).
- Basic earnings per share were
EUR 0.82 (1.02). - Cash flow per share before financial items was
EUR 0.53 (0.90). - The outlook for 2021 remains unchanged. Orion estimates that net sales in 2021 will be slightly lower than in 2020 (net sales in 2020 were
EUR 1,078 million ). Operating profit is estimated to be lower or clearly lower than in 2020 (operating profit in 2020 wasEUR 280 million ).
4-6/21 | 4-6/20 | Change % | 1-6/21 | 1-6/20 | Change % | 1-12/20 | |
Net sales, EUR million | 254.9 | 292.5 | -12.8% | 523.6 | 572.4 | -8.5% | 1,078.1 |
EBITDA, EUR million | 82.0 | 110.7 | -25.9% | 168.0 | 209.2 | -19.7% | 336.5 |
% of net sales | 32.2% | 37.8% | 32.1% | 36.6% | 31.2% | ||
Operating profit, EUR million | 71.0 | 96.4 | -26.3% | 146.0 | 180.8 | -19.2% | 280.1 |
% of net sales | 27.9% | 33.0% | 27.9% | 31.6% | 26.0% | ||
Profit before taxes, EUR million | 70.4 | 96.5 | -27.1% | 145.2 | 179.9 | -19.3% | 278.3 |
% of net sales | 27.6% | 33.0% | 27.7% | 31.4% | 25.8% | ||
Profit for the period, EUR million | 56.0 | 75.6 | -26.0% | 115.5 | 143.0 | -19.2% | 219.9 |
% of net sales | 22.0% | 25.8% | 22.1% | 25.0% | 20.4% | ||
R&D expenses, EUR million | 28.8 | 32.3 | -10.9% | 53.9 | 59.2 | -8.9% | 123.2 |
% of net sales | 11.3% | 11.1% | 10.3% | 10.3% | 11.4% | ||
Capital expenditure, EUR million | 14.4 | 10.8 | +33.1% | 26.4 | 21.2 | +24.8% | 48.5 |
% of net sales | 5.7% | 3.7% | 5.0% | 3.7% | 4.5% | ||
Interest-bearing net liabilities, EUR million | -51.1 | -53.2 | -4.0% | -185.8 | |||
Basic earnings per share, EUR million | 0.40 | 0.54 | -26.0% | 0.82 | 1.02 | -19.2% | 1.56 |
Cash flow per share before financial items, EUR | 0.33 | 0.56 | -40.1% | 0.53 | 0.90 | -41.2% | 1.85 |
Equity ratio, % | 68.2% | 65.3% | 66.7% | ||||
Gearing, % | -7.3% | -7.5% | -25.4% | ||||
ROCE (before taxes), % | 35.6% | 44.4% | 34.8% | ||||
ROE (after taxes), % | 32.3% | 38.4% | 29.1% | ||||
Average personnel during the period | 3,362 | 3,336 | +0.8% | 3,337 |
President and CEO
Orion's operating profit excluding milestone payments on par with previous year
“2021 has marched on steadily despite the exceptional circumstances brought on by the COVID-19 pandemic. For Orion, this has meant continuing to focus on looking after the health and safety of our employees and ensuring production continuity, product availability and patient safety in ongoing clinical trials.
Orion's net sales in January-
During the review period, we received positive news of our research and development projects, as Tessie®, a veterinary drug developed by Orion, was recommended for marketing authorisation by the Committee for Medical Products for Veterinary Use (CVMP) of the
More good news came in from Orion's digital therapies development projects, as the VIRPI trial, which examined the effects of utilising virtual reality therapy in the treatment of chronic low back pain, reported positive results in June.
In the review period, we decided to discontinue the development of a new dry powder inhaler and focus on developing the existing Easyhaler® platform as well as improving competitiveness. The Easyhaler® technology has been on the market for decades and is the subject of continued development.
The estimate concerning the completion of the Phase III ARASENS clinical trial on darolutamide with Bayer was updated in the review period, and the trial is currently expected to reach primary completion in the final quarter of 2021. Orion's other key clinical development projects proceeded as expected in the review period.
The global pharmaceutical supply chains have functioned fairly well from Orion's perspective throughout the pandemic, and so far we have not experienced any material disruptions or shortages. To our current knowledge, no disruptions or shortages are expected to affect the outlook for the rest of 2021 either. The risk associated with disturbances in global supply and logistics chains continues to be higher than usual, and we have taken various measures to mitigate it, such as increasing the stock levels of products, raw materials and supplies clearly above their long-term averages. Travel and other restrictions resulting from the pandemic have not caused labour shortages at Orion so far, and we have been able to carry out all maintenance procedures and scheduled production shutdowns as planned, even those requiring special expertise.
In the review period, we continued our determined work to achieve Orion's strategic growth target and commenced preparations to expand our non-European operations to
Outlook for 2021 (provided on 9 February 2021)
Orion estimates that net sales in 2021 will be slightly lower than in 2020
(net sales in 2020 were
Operating profit is estimated to be lower or clearly lower than in 2020
(operating profit in 2020 was
Webcast and conference call
A webcast and a conference call for analysts, investors and media will be held on Monday,
A link to the live webcast will be available on Orion's website at www.orion.fi/en/investors. A recording of the event will be available on the website later the same day.
To participate the conference call, please dial:
PIN: 85134267#
Orion calendar
Interim Report January- | Wednesday |
Financial Statement Release for 2021 | Thursday |
Annual General Meeting 2022 | Planned to be held on Wednesday |
Interim Report January- | Thursday |
Half-Year Financial Report January- | Friday |
Interim Report January- | Thursday |
The Financial Statements and the Report of the Board of Directors for 2021 will be published on the Company's website at the latest in week 9/2022.
Espoo,
Board of Directors of
For additional information about the report:
www.orion.fi/en/investors
Publisher:
http://www.orion.fi/en
http://www.twitter.com/OrionCorpIR
Orion is a globally operating Finnish pharmaceutical company – a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. The company is continuously developing new drugs and treatment methods. The core therapy areas of Orion's pharmaceutical R&D are neurological disorders, oncology and respiratory diseases for which Orion develops inhaled pulmonary medication. Orion's net sales in 2020 amounted to
Attachment
- Orion Group Half-Year Financial Report 1-6 2021
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