Oriola Corporation published its Half year financial report 1 January-30 June 2018 on Wednesday, 18 July 2018 at 8.30 a.m.
President and CEO Robert Andersson:
“Overall Oriola Group growth was good in the second quarter of the year. The Group’s invoicing increased by 6.2% (11.1% on constant currency basis) and net sales by 3.1% (8.2% on constant currency basis) but the result was burdened by extra costs mainly in Service Business Area. Logistic operations in Finland were stabilised as planned, with deliveries and product picking accuracy and volume equal to that preceding the ERP system change.
Service Business Area invoicing increased by 7.7% (12.3% on constant currency basis) and net sales by 5.2% (9.7% on constant currency basis), but efficiency is still not satisfactory. This resulted in extra staffing to ensure quality and customer deliveries in Finland. In Sweden, increased volumes and high capacity-utilization also resulted in higher costs. To secure our growth and efficiency in Sweden, we have invested in a new automated distribution center in Enköping. The project is proceeding according to plan and the new distribution center is expected to start deliveries in the fourth quarter of 2018.
Oriola Consumer Business Area in Sweden faces strong competition mainly from online pharmacy services. By the end of the second quarter, online sales had risen to 8% (6%) of total pharmacy sales in Sweden. Our online sales continued to grow faster than the market, supporting overall sales growth which was 5.9% on constant currency basis. Weak exchange rate affected our comparable result negatively, as did the establishment costs of comprehensive wellbeing chain Hehku, with 18 stores and online shop in Finland.
Business Area Healthcare continued its good development in the second quarter, making a breakeven result. Net sales grew by 37.6% compared to corresponding period last year. Oriola dose dispensing services currently cover over 70,000 patients, out of which more than 50,000 patients are in Sweden.
In the second quarter, we invested in the second largest online medical center in Sweden, Doktor.se. Oriola subscribed for shares in Doktor.se giving an ownership of approximately 17% of the total number of shares in Doktor.se. This investment provides us with a great opportunity to become an even stronger player in the fast developing digital healthcare market in Sweden, where consumers expect products and services to be available regardless of time and place. The investment further extends our unique range of services not only to the consumers but for the entire value chain in the healthcare sector.”