Oriola Corporation published its Interim report 1 January-30 September 2018 on Thursday, 1 November 2018 at 8.30 a.m
President and CEO Robert Andersson:
“In the third quarter, Oriola’s net sales continued to grow, but profitability was impacted by performance challenges. Invoicing increased by 2.6% (8.9% on a constant currency basis) but net sales decreased by 2.0% (increased 4.5% on a constant currency basis). Adjusted EBIT was EUR 17.5 million. The amount includes a positive EUR 9 million settlement with the provider of the new logistics and warehouse IT system, announced in August.
Service Business Area invoicing increased by 4.1% in the third quarter, 10.1% on a constant currency basis, driven by pharmaceutical price and volume increase mainly in Sweden. Due to new logistics and warehouse IT system implementation in Finland and DC-project in Enköping, we experienced inefficiencies, and operations costs were high in both countries. We will continue to focus on improving logistics efficiency in both countries. The Enköping distribution center will open during the first quarter of 2019.
On a constant currency basis Consumer Business Area net sales grew 4.2% in the third quarter compared to corresponding period last year, despite of the strong competition in traded goods and OTC, and margin pressure in prescription medicines. Our online sales continued to grow (58%) stronger than the market. Comprehensive wellbeing chain Hehku opened one new store and now consists of 19 stores and an online shop in Finland.
In the third quarter Business Area Healthcare continued its good development. Net sales grew on a constant currency basis by 39.4% compared to corresponding period last year. Oriola dose dispensing services won a major new contract in Sweden in September. The contract covers Stockholm and Gotland area dose dispensing and will bring approximately 35,000 new patients from the beginning of February 2019. This will increase Oriola’s total number of dose dispensing patients to more than 100,000, out of which more than 80,000 patients are in Sweden.
Oriola is in the middle of a transformation process. In September we announced our new organisation, which will be more customer focused and efficient. From 1 January 2019 our Business Areas will be Consumer, Pharma and Retail. As part of this change we are creating a new Group function called Operations, which covers logistics, dose manufacturing and indirect sourcing, and supports all Business Areas. I’m confident that with this change we can develop our business and become more customer oriented. This transformation supports a more holistic way to drive and develop our unique offering in the growing health and wellbeing market. By building a strong Oriola culture we ensure synergies, improve our operational excellence and cost efficiency throughout the whole organisation.”