Oriola-KD Corporation published its financial statements release 1 January-31 December 2016 on Monday, 13 February 2017 at 8.30 a.m.
President and CEO Eero Hautaniemi:
Oriola-KD's business grew at the pace of the market in 2016. The growth was above the market in Services business, and weaker in the Consumer business. The profitability was supported by the efficiency improvement in the logistics, and the continued favourable development of the sales mix in the Consumer business.
We are successfully executing our strategy in all Business areas. In Consumer business we opened 11 new pharmacies in good locations in Sweden, and closed 3 pharmacies in locations where the customer traffic no longer supported the sales. We launched new online application to improve our service to prescription customers. In 2016 our online sales were two per cent of the total sales and continue to have good growth potential.
As a result of increasing competition, especially online, we will intensify our focus on efficient pharmacy operations, establishment strategy and dynamic online offering in our Consumer business. Despite the increasing competition and 14 new pharmacies the result at the comparable EUR/SEK rate stayed at the previous year level in 2016.
In Services business we extended our services offering to pharmaceutical companies and to pharmacies by acquiring Farenta Oy. We are also amidst a three-year development phase as we are implementing a new operating platform and upgrading the automation level of our distribution centres. Still we were able to reach an all-time high result in Services in 2016.
We started the new business area Healthcare by acquiring dose dispensing companies both in Sweden and in Finland and were successful in increasing the number of persons served by us. The new Business area developed well and was able to deliver a positive contribution already during its first year.
The pharmaceutical distribution and dispensing is very much in the public discussion, both in Sweden and in Finland. The pharmacy trade was opened to competition in Sweden almost a decade ago. As a consequence of the deregulation, the availability of pharmacy services has improved significantly and the patient safety has remained on a high level. The number of pharmacies has increased by over 400, the pharmacies have continued to serve the sparsely populated areas and the competition has lowered the prices of the freely traded products. The customer feedback has been positive. In Finland the discussion has started to acknowledge these facts and the willingness to consider new regulation is increasing.
Our personnel has been working hard with all of our development programs while implementing the new business structure and continuing to serve our customers each and every day. With this dedication to develop our company we are set to continue to improve our businesses and performance.