Half year financial report January-June 2020

Oriola Corporation published its Half year financial report 1 January-30 June 2020 on Friday, 17 July 2020 approximately at 8.30 a.m.

President and CEO Robert Andersson on the second quarter of 2020:

“Oriola’s invoicing (EUR 897.7 million, -4.7%) and net sales (EUR 435.8 million, -2.8%) decreased in the second quarter of the year compared to last year. On a constant currency basis invoicing decreased by 4.6% and net sales decreased by 2.6%. Adjusted EBIT decreased to EUR -0.3 million.

The second quarter result was lost due to the COVID-19 pandemic, which significantly impacted Oriola’s market environment and operations in both countries. The restricted consumer mobility, especially in April–May, impacted buying behavior and the use of healthcare services negatively. Public healthcare focused on the preparations for, and treatment of COVID-19 patients, which resulted in partial standstill of elective care. In addition, securing pharmaceutical deliveries in all circumstances raised operational costs.

In Consumer, net sales decreased by 1.9% on a constant currency basis compared to the same period last year. In the second quarter, sales were affected by the change in consumer buying behaviour, which was reflected in the significant slowdown in commerce in shopping centres and also in the growth of online sales. At our pharmacies, new services were quickly developed to support the new market situation, such as ”Call and Collect Outside” service, as well as COVID-19 antibody testing. In accordance with our omnichannel strategy, we launched a “Click & Collect” service, where products can be ordered online and picked up from a pharmacy, with an accelerated schedule.

Pharma´s invoicing decreased by 5.9% on a constant currency basis compared to the same period last year, and net sales decreased by 4.8% compared to the same period last year. The slowdown in pharmaceutical sales following the pandemic was particularly evident in April–May. The result was also weakened by the increased costs due to the securing the pharmaceutical distribution to customers. Together with four Swedish regions and another wholesaler, we built a national stock in Sweden for certain pharmaceuticals to support pharmaceutical availability.

In Retail, net sales grew by 4.2% on a constant currency basis compared to the same period last year. Retail´s sales were positively impacted by the demand for pandemic-related products. On the other hand, the decline in pharmacy visits had a negative impact on overall product sales and on pharmacy staffing business in Finland. The Business Area´s result was also weakened by the increased distribution and operational costs at our distribution centre in Sweden.

In our operating countries the COVID-19 pandemic situation is currently relatively stable, but the risk of a second wave may increase volatility of the business environment.”

Half year financial report 2020