Oriola Corporation published its Half year financial report 1 January-30 June 2019 on Wednesday, 17 July 2019 approximately at 8.30 a.m.
President and CEO Robert Andersson on the second quarter of 2019:
“Oriola’s invoicing (EUR 942.5 million, +5.1%) and net sales (EUR 448.5 million, +12.3%) continued to grow in the second quarter compared to previous year. On a constant currency basis invoicing grew by 7.1% and net sales by 14.8%. Adjusted EBIT was EUR 6.4 million, 18.8% lower than previous year. Changes in the Swedish consumer market as well as slower than expected ramp-up of new distribution centre in Sweden impacted profitability negatively.
Consumer net sales increased 0.6% year-on-year on a constant currency basis. Online sales grew by 36%, in line with market growth. Changes in consumer behaviour and strong price competition in online affected profitability negatively. We continue to develop omni-channel services in Consumer. Experiences from the first Drop-in clinics for healthcare services have been positive and we are widening our offering in the second half of the year.
Pharma continued to grow in both operating countries. Invoicing increased 9.3% year-on-year and net sales increased 30.9% on a constant currency basis driven by the pharmaceutical market growth and changes in the distribution agreements for pharmaceuticals. In Finland the efficiency of Operations was on a good level while inefficiency in the Swedish Operations burdened the Pharma result. Along with the traditional distribution business we are developing our expert services for pharmaceutical companies, whose demand for local expert services is growing.
Good development in dose dispensing business accelerated Retail business growth in the second quarter of the year. The total number of our patients has already grown to 115,000 and we are now the market leader in Sweden. Retail net sales increased 7.9% year-on-year on a constant currency basis. Inefficiencies in the Swedish Operations burdened the Retail result. We are continuing to renew our product assortment and services in Retail.
Our two strategic programmes, 20by20 Excellence and Customer Experience, are progressing according to plans. In June we announced cooperation negotiations and with the planned actions we estimate to save approximately 4-6 million euros annually. The target of 20by20 Excellence programme is to deliver EUR 20 million savings annually by the end of 2020.”