Strategy and targets
Oriola’s purpose, 'Health for life', guides our operations together with our vision and mission. Our goal is to enable a healthier tomorrow by providing sustainable health and wellbeing products and services.
On 4 October 2021, Oriola announced initiating a transformation and turnaround process through a plan to optimise company’s operating model and simplify the organisational structure. Through these turnaround measures, Oriola streamlines processes to improve operational efficiency and reduces cost for increased profitability and cost-competitiveness. The measures announced represent the first phase in the company’s transformation during which Oriola is executing a short-term action plan with the key objective to ensure successful turnaround.
Oriola has also initiated a comprehensive strategy process.
Short-term action plan
Oriola’s short-term action plan consists of four key elements:
- Cost savings through simplified operating model, reduction of operating costs and rigorous cost management.
- Efficient net working capital management through optimised product portfolio, enhanced supplier management and supply chain planning.
- Excellent customer relationship management targeting to superior customer experience with one-touch point to customers.
- Commercial excellence through service portfolio crystallisation, pricing models revisits and enhanced margin management.
Long-term financial targets1
- Business growth at the rate of market growth
- Annual EPS growth over 5 per cent, without adjusting items
- Return on capital employed of over 20 per cent
- Adjusted gearing ratio of lower than 70 per cent2
1 Calculated excluding the impact of application of IFRS 16
2 Non-recourse trade receivables are added to the net debt
Long-term sustainability goals
- Improving people’s health
- Best-in-class employee engagement
- Carbon neutrality by 2030
As a health and wellbeing company, sustainability is at the core of our operations: we promote the health of people and the entire society. Read more about Oriola’s sustainability strategy.