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Oriola Corporation’s Financial Statements Release January-December 2017


Oriola Corporation Stock Exchange Release 13 February 2018 at 8.30 a.m.

Oriola Corporation’s Financial Statements Release January-December 2017

Financial performance October–December 2017, continuing operations

  • Invoicing increased by 1.5 (increased 1.7) per cent to EUR 871.6 (858.5) million                                                                                                        
  • Net sales decreased by 3.9 (increased 0.8) per cent to EUR 395.2 (411.2) million
  • Adjusted EBITDA decreased by 39.6 (increased 4.2) per cent to EUR 13.1 (21.7) million
  • Adjusted EBIT was EUR 6.2 (15.3) million
  • Profit for the period totalled EUR 2.1 (10.8) million and earnings per share were EUR 0.01 (0.06)

Financial performance January–December 2017, continuing operations

  • Invoicing decreased by 0.8 (increased 4.8) per cent to EUR 3,336.3 (3,364.2) million                                                                                                             
  • Net sales decreased by 3.8 (increased 0.7) per cent to EUR 1,527.7 (1,588.6) million
  • Adjusted EBITDA decreased by 20.8 (increased 3.9) per cent to EUR 67.6 (85.4) million
  • Adjusted EBIT was EUR 39.9 (59.9) million
  • Profit for the period totalled EUR 25.9 (41.8) million and earnings per share were EUR 0.14 (0.23)
  • The Board of Directors proposes a dividend of EUR 0.09 per share for the year 017

Business outlook for 2018

Adjusted EBIT of continuing operations on constant currency basis is estimated to increase from the 2017 level.

Oriola is undergoing a major development phase which started in 2015. In 2018 Oriola will open an extension to the Enköping Distribution Centre. The start-up of the new automated warehouse is anticipated in the fourth quarter 2018. The phased start-up will impact the efficiency during the fourth quarter. In Finland the improvements to the ERP and warehouse management system taken into use in 2017 will continue, with the aim that the efficiency will improve throughout the year. In Consumer business the building of Hehku-chain continues with opening of new stores.

In the end of 2017 the pharmaceutical company Roche’s distribution agreement with Oriola ended after a three year contract period. Roche's share of the Finnish pharmaceutical market is 4.7 per cent, and the annual sales of Roche at wholesale price is approximately EUR 120 million in Finland.

Oriola and the pharmaceutical company Orion have agreed that Orion can during 2018 continue to place a part of their offering into multichannel distribution in Finland. The wholesale value of these products is up to EUR 90 million.

Kimmo Virtanen, Executive Vice President, Services Business Area:

The year 2017 was difficult for Oriola. The changes affecting each of the Business areas were different, but as a result the growth and profitability did not reach the targeted level. However, in many aspects there was positive development.

In Services the implementation of the new ERP and warehouse management system in Finland proved to be challenging, and as a consequence our capability to serve our customers and fulfil our role in the Finnish pharmaceutical distribution system was seriously affected. During the fourth quarter we concentrated in improving the operations and customer service. This work will continue also in 2018, with the aim to restore customer confidence and operative efficiency. In Sweden the construction and commissioning of the new automated distribution center is well on the way, and we expect to start deliveries in the fourth quarter of 2018. The expert services for pharma industry, pharmacies and hospitals developed well in both operating countries, in Sweden through the acquisition of ICTHS.

The Consumer business improved the prescription medicines service level, and was able, in spite of tough competition, to maintain the overall margins. The e-commerce capabilities were developed with good results, and the growth of Kronans Apotek’s online sales exceeded the pharmacy online market growth in Sweden. In Finland the launch of Hehku health and wellbeing store chain together with Kesko was progressing well, and the first stores and the webshop were opened in January 2018. The new chain is a strategic entry to growing health and wellbeing market in Finland.

The Healthcare business grew along the new contracts in Sweden. The dose dispensing for Norrland Region and the pharmaceutical distribution to Västmanland doubled the sales volume, but also presented a big challenge for the organization to increase the dose production and set up the capability to serve the county council. The Finnish dose dispensing performed well.

According to our strategy, we sold our businesses in the Baltic countries, and decided to focus on developing our business in Finland and Sweden where we see great potential and have initiated extensive development projects.  

Key figures, continuing operations 2017 2016 Change 2017 2016 Change
EUR million 10-12 10-12 % 1-12 1-12 %
Invoicing 871.6  858.5  1.5  3,336.3  3,364.2  -0.8 
Net sales 395.2  411.2  -3.9  1,527.7  1,588.6  -3.8 
Adjusted EBITDA 13.1  21.7  -39.6  67.6  85.4  -20.8 
Adjusted EBITDA % 3.3  5.3     4.4  5.4    
Adjusted EBIT 1) 6.2  15.3  -59.4  39.9  59.9  -33.3 
EBIT 3.9  14.1  -72.1  37.8  57.6  -34.4 
Adjusted EBIT % 1.6  3.7    2.6  3.8   
EBIT % 1.0  3.4    2.5  3.6   
Profit for the period 2.1  10.8  -80.2  25.9  41.8  -38.0 
Earnings per share, EUR, continuing operations 0.01  0.06  -80.2  0.14  0.23  -38.0 
Earnings per share, EUR, discontinued operations -0.00  0.00  n.a.  0.00  0.01  -66.7 
Net cash flow from operating activities 2) 11.0  25.8    23.7  40.2   
Gross capital expenditure       46.1 88.6  
Total assets 2)       922.4 925.4  
Net interest-bearing debt 2)       110.2 72.3  
Gearing, % 2)       55.7 35.2  
Net debt / 12-month EBITDA 2)       1.7 0.8  
Equity per share, EUR 2)       1.09 1.13  
Equity ratio, % 2)       21.8 22.7  
Return on equity (ROE), % 2)       13.0 21.4  
Return on capital employed (ROCE), % 2)   11.7 17.8  
Average number of shares, 1000 pcs 3)   181,328 181,389  
Average number of personnel       2,686 2,425  
Number of personnel at the end of the period   2,619 2,669  
1) Adjustment items are specified in table "Adjusting items included in EBIT"
2) Includes discontinued operations
3) Treasury shares held by the company not included

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Financial Statements Release January­­–December 2017. The complete report is attached to this release in pdf format and is also available on Oriola’s website at

Analyst and investor meeting

Oriola Corporation will organize a meeting for investors, analysts and the press on Tuesday, 13 February 2018 at 10.00 a.m. at Hotel Scandic Simonkenttä, meeting room Pavilion, Simonkatu 9, 00100 Helsinki, Finland.

A teleconference on the financial information will be held by Oriola Corporation on the same day starting at 2.00 p.m. Finnish time, tel. +44 20 3936 2999, confirmation code "10 40 27". The event can be followed live as an audiocast accessible at The language of the teleconference will be English.

Publication of the Financial Statements

Oriola Corporation will publish its 2017 Financial Statements by 23 February 2018 at the latest.

Further information:

Kimmo Virtanen, Executive VP, Services Business Area
tel. +358 10 429 2069, e-mail: 

Katja Graff, Manager, Treasury and IR
tel. +358 10 429 013, email: 


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Oriola Corporation
Orionintie 5, 02200 Espoo