Financial Statements Release 2019

Oriola Corporation has published its financial statements release 1 January–31 December 2019 on Friday, 7 February 2020 at 8.30 a.m.

President and CEO Robert Andersson:

”For Oriola, 2019 was a year of strong growth in invoicing (EUR 3,733.1 million, +6.1%) and net sales (EUR 1,721.3 million, +10.9%). On constant currency basis invoicing grew by 8.4% and net sales by 13.6%. Adjusted EBIT for 2019 was EUR 20.5 million, which is 40.6% lower than in 2018. The year was burdened by the slower than planned ramp-up of the new distribution center in Sweden, and strong price competition in online business in the pharmacy market.

In the fourth quarter, the net sales of Consumer grew by 3.2% on constant currency basis. Online business grew by 20%. The profitability was burdened especially by tough online competition, spending in IT systems as well as increased cost level. The EBIT also included adjusting items mainly consisting of impairment of intangible assets. In Pharma, net sales grew by 26.4% on constant currency basis, driven by pharmaceutical market growth. In Retail, net sales grew by 9.5% on constant currency basis due to good performance of dose-dispensing. Both business areas were burdened by the high distribution costs in Sweden. In Finland however, our distribution operations exceeded our objectives and are performing with high efficiency, stability and excellence.

During 2019 we have progressed on our two strategic programmes. In 20by20 Excellence we systematically review our operations and increase efficiency to achieve annualised savings of EUR 20 million by the end of 2020. During 2019 we have achieved savings especially in resource costs of logistics and in IT costs in Finland. We will continue the programme as planned in 2020. The Customer Experience programme has focused on developing customer experience, and the results at the end of 2019 were encouraging. Customer satisfaction has improved – especially in Finland.

In 2020 we will further increase the efficiency of our operations and renew our ways of working. The actions for turning the company direction are demanding, but we have a solid plan for execution. Our focus is on improving profitability. We will continue to strengthen the customer experience to ensure added value in every customer encounter. In line with our strategy, we will also advance OneOriola culture to harmonise our ways of working and to realise synergies. We are committed to sustainability and have set ambitious long-term goals, such as carbon neutrality by 2030.”

Q4 2019