Oriola-KD Corporation published the interim report 1 January - 30 June 2014 on Thursday, 24 July 2014 at 8.30 a.m.
President and CEO Eero Hautaniemi's comments regarding the interim report:
"Profitability improved in both operating segments in Pharmaceutical Trade Sweden. Kronans Apotek has established itself as one of the main players in the Swedish pharmacy market with a market share of approximately 21 per cent according to the company's estimate. The Swedish wholesale business' profitability was strengthened by the efficiency programme that was started in the third quarter of 2013 as well as the increased volume of the business.
Weak development of the Russian businesses contributed negatively to Oriola-KD's net sales and operating profit during the first half. Operating profit of the Russian wholesale business was very poor and the operating segment's profitability was clearly behind the goals set. In connection with the planning process, the Group's outlook on the future development of Russian pharmaceutical wholesale operations was revised which led to EUR 77.2 million impairment charge. During the second quarter, a change in the marketing income and bonus receivables estimate regarding the Russian wholesale business pharmaceutical principle contracts led to a EUR 7.2 million expense. As a result of efficiency measures initiated in the Russian businesses, the headcount reduction at the end of June 2014 in comparison to June 2013 was 490. We will continue and enhance the efficiency measures taken to improve the performance of the Russian wholesale business during the second half of the year.
The construction work of the new distribution centre in Moscow has been completed. The investment project is progressing as planned and transfer of the operations is scheduled to begin in the last quarter in 2014. Full production capacity will be reached by the end of the first quarter in 2015."