Interim Report January-September 2017

Oriola Corporation published its Interim report 1 January- 30 September 2017 on Wednesday, 25 October 2017 at 8.30 a.m.


President and CEO Eero Hautaniemi:

In the Services business the major change happened in Finland, where the new ERP and warehouse management system was taken into use in the beginning of September. The new system started with unexpected difficulties, and a lot of effort was needed to bring the delivery performance back to normal level. During the first two weeks of September the service level in pharmaceuticals dropped to an average 72 per cent, and by the end of September 95 per cent of the pharmaceutical orders were delivered to pharmacies within the promised 24 hours. During October the performance levels in pharmaceutical deliveries have returned to normal, and non-pharmaceuticals will return to normal by the end of the month.

The personnel of Oriola Finland have done their utmost to resolve these difficulties, deliver the pharmaceuticals and inform the customers under great pressure. Our customers, pharmacies and pharmaceutical companies alike, have shown their support in helping us, and secure the delivery of critical medicines to the consumers. I want to thank both our customers and personnel for the flexibility and co-operation under this transition time.

In the third quarter we continued our work on the development actions started during the second quarter in the Consumer business in Sweden. The competition in the market is intensive and the cost of online development, newly established pharmacies, and the start-up costs of the Finnish health and wellbeing chain burdened Consumer business area profitability. The online sales in the Swedish pharmaceutical retail market continues to grow at a fast pace and is estimated to reach approximately 7 per cent of the Swedish pharmaceutical retail market by the end of 2017. Our online sales have developed well, and based on the Company's estimates have grown faster than the market in 2017. The preparation work for the launch of Oriola's and Kesko´s new chain of comprehensive wellbeing stores in Finland continued. The first stores are planned to be opened in the beginning of 2018.

The Healthcare business continued the work on efficiency improvements in the dose dispensing, in order to improve the profitability in Sweden. At the end of September 2017 Oriola served approximately 68,000 persons with dose dispensing in Sweden and Finland.