Oriola Corporation published its interim report 1 January-31 March 2019 on Friday, 26 April 2019 at 3.00 p.m.
President and CEO Robert Andersson on the first quarter of 2019:
“Oriola’s invoicing (EUR 894 million, +5.4%) and net sales (EUR 397 million, + 2.3%) continued to grow in the first quarter compared to the previous year. On a constant currency basis invoicing grew by 8.7% and net sales by 5.8%. Inefficiencies and high operating costs as well as a challenging consumer market in Sweden impacted profitability negatively.
Ramp-up of our new distribution centre in Sweden started in February. The main ramp-up phase is expected to continue to the end of the second quarter, and by the end of 2019 we expect to reach efficiency.
Our new organisation based on customer focused business areas Consumer, Pharma and Retail has been effective from the beginning of this year.
Consumer focuses in pharmacy operations in Sweden, where consumer behavior is fast changing towards online. We continued to invest in online and our online business grew by 59%, which was faster than the market (34%). Price competition and lower margins affected Consumer result negatively.
Pharma offers wholesales and expert services for pharma products. Pharma continued to grow in both Sweden and Finland. Invoicing increased 11.4% year-on-year and net sales increased 11.6% on a constant currency basis. Inefficiency in Operations still burdened the result in Sweden but improved efficiency in Finland had a positive impact on Pharma result.
Retail offers a wide product and service portfolio for pharmacies, groceries and other wellbeing operators. The Retail first quarter was not satisfying mainly due to the inefficiencies of Operations in Sweden and renewal of parts of the portfolio. We started dose dispensing deliveries to Stockholm’s Läns Landsting (SLL) in February, making us the market leader in Sweden with over 90,000 patients.
Our two strategic programmes, 20by20 Excellence and Customer Experience, are progressing according to plans. In 20by20 Excellence programme, the targeted savings of EUR 20 million are expected to materialise gradually from the second half of 2019, with full effect by the end of 2020.”