Strategy and long-term financial targets
Oriola's refined strategy and new financial targets were announced on 31 October 2023.
The leading specialist in wholesale of pharmaceuticals and health products
Oriola is taking the next steps to build the new Oriola by introducing a refined strategy with a strengthened focus on wholesale business. The strategy aims to capture the full value of Oriola's operations, strengthen its position in the markets and to create long-term shareholder value. With the strategy, Oriola enables health, every day, in accordance with the company vision.
Oriola has set three goals to drive the strategy forward:
- Strong partnerships: To enhance customer value through commercial focus and excellence, and by developing a more efficient, sustainable and collaborative working culture. To develop data and insight driven business, including forward looking data management.
- Enhanced efficiency: To increase warehouse capacity and efficiency by investing in both infrastructure and technology. Additionally, the activities include supporting organic profitable growth that is focused on large yet efficient volumes and customer segments.
- Portfolio and market expansion: To develop the wholesale business with new brands, product categories and customer segments. The plan is also to expand Oriola’s core distribution business through acquisitions. In addition, activities include investments in specific differentiating and digital services.
The strategy period is 2024-2026.
Long-term financial targets
Oriola’s new long-term financial targets and dividend policy are:
- Growth: Annual sales growth at the rate of market, minimum 4%
- Profitability: Adjusted EBIT margin above 3%
- Equity: Return on equity >20%
- Dividend policy: Oriola aim is to pay out an increasing annual dividend of 2/3 of net profit.
The strategy enables us to strengthen the value creation in our main businesses. In distribution we offer pharmaceutical logistics and dose dispensing services. Our wholesale business focuses on traded goods and over-the-counter (OTC) products, as well as parallel import and special licensed medicines. The advisory business provides expert services to pharmaceutical companies and pharmacies. We enable our customers to succeed by being a professional and forward-looking business partner and by delivering insights to support their strategic decision-making. Through an integrated customer offering we ensure value-adding and profitable partnerships.
Furthermore, Oriola supports Kronans Apotek to complete the integration and realise the synergies and value creation of the joint venture company.
Sustainability at Oriola: Fostering a healthier tomorrow
At Oriola, we believe that a sustainable future starts with health. We foster a healthier tomorrow through our services and products and minimise the impact of our operations on the environment. Our core business, the wholesale of pharmaceuticals and health products, has an essential and positive role in society and people’s lives.