Oriola Corporation’s Financial Statement Release January 1– December 31, 2020
18.2.2021
Oriola Corporation stock exchange release 18 February 2021 at 15.00 p.m.
Oriola Corporation’s Financial Statement Release January 1– December 31, 2020
January–December 2020 highlights
- The COVID-19 pandemic had a significant impact on Oriola’s operating environment and operations. Pharmaceutical volumes declined in both the Finnish and the Swedish market.
- The distribution and the availability of pharmaceuticals secured well in both markets.
- Invoicing increased by 0.9% (increased 6.1%) to EUR 3,764.9 (3,733.1) million. On a constant currency basis invoicing increased by 0.1% and was EUR 3,738.6 million.
- Net sales increased by 4.6% (increased 10.9%) to EUR 1,800.8 (1,721.3) million. On a constant currency basis net sales increased by 3.8% and were EUR 1,787.1 million.
- Adjusted EBIT was EUR 21.0 (20.5) million. On a constant currency basis the adjusted EBIT was EUR 20.8 million.
- Profit for the period totalled EUR 11.3 (8.0) million and earnings per share were EUR 0.06 (0.04).
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.03 (0.09) per share is paid for 2020. In addition, it is proposed that the Annual General Meeting would authorise the Board of Directors to decide at its discretion on the payment of dividend up to a maximum of EUR 0.03 per share.
October–December 2020 highlights
- The pandemic continued to negatively impact Oriola’s operating environment. Pharmaceutical volumes continued to decline.
- Strong online sales in Consumer, 107% vs. market growth of 66%.
- Invoicing increased by 0.8% (increased 5.4%) to EUR 986.6 (978.9) million. On a constant currency basis invoicing decreased by 1.7% and was EUR 962.1 million.
- Net sales increased by 4.4% (increased 13.2%) to EUR 466.2 (446.7) million. On a constant currency basis net sales increased by 1.5% and were EUR 453.5 million.
- Adjusted EBIT was EUR 8.0 (2.1) million driven by many parts of the business, for example dose dispensing. On a constant currency basis the adjusted EBIT was EUR 7.9 million.
- Profit for the period totalled EUR 4.1 (-0.2) million and earnings per share were EUR 0.02 (-0.00).
Business outlook for 2021
The adjusted EBIT on a constant currency basis stays on the same level or increases from the 2020 level.
The COVID-19 pandemic is expected to continue during 2021. Severity and duration of the pandemic remain unclear in Oriola’s operating environment. Oriola’s business outlook for 2021 is based on external market forecasts, agreements with pharmaceutical companies and pharmacies, and management assessments.
President and CEO Juko Hakala:
"2020 was an exceptional year for Oriola, with the COVID-19 pandemic impacting our operations significantly from March onwards. Pharmaceutical volumes declined during the year in both of our markets, resulting from the pandemic-related restrictions and allocation of healthcare resources. Our second quarter result was lost due to the first wave of the pandemic. During the year, society and also Oriola learned to adapt to the new situation, and prepare for the second wave of the pandemic.
In the fourth quarter of 2020, Oriola’s invoicing remained stable and net sales grew slightly. Our profitability improved in many parts of our business, amounting to a fourth quarter adjusted EBIT of EUR 8.0 (2.1) million, making it the highest quarter in 2020.
The fourth quarter net sales1 of Consumer grew by 2.6% to EUR 195.8 (190.8) million, driven by strong online sales. Adjusted EBIT increased to EUR 4.4 (1.1) million. The strategically important online channel grew by 107% compared to the same period last year. Oriola's brick-and-mortar pharmacies were also successful in the review period.
In Pharma, the fourth quarter net sales1 increased by 0.7% to EUR 243.9 (242.2) million. Adjusted EBIT was EUR 4.1 (4.2) million. Changes in distribution agreements as well as additional operational costs related to the pandemic burdened Pharma's profitability.
The net sales1 of Retail grew by 5.3% to EUR 120.1 (114.1) million in the fourth quarter. Adjusted EBIT improved to EUR 0.7 (-0.8) million. The profit improvement was primarily driven by the continued positive development of dose dispensing. The result of the business area was still impacted by the additional operational costs related to the pandemic.
In this exceptional year, we secured the distribution and the availability of pharmaceuticals well in both markets. This achievement was made possible by our employees, who have gone the extra mile and worked hard during 2020. This has been vital for the entire society, in line with our purpose "Health for life". In 2021, we are committed to continue our strategic programmes. Profitability and reliable operations remain our key priorities.”
1 On a constant currency basis.
| Key figures | 2020 | 2019 | Change | 2020 | 2019 | Change |
| EUR million | 10-12 | 10-12 | % | 1-12 | 1-12 | % |
| Invoicing | 986.6 | 978.9 | 0.8 | 3,764.9 | 3,733.1 | 0.9 |
| Net sales | 466.2 | 446.7 | 4.4 | 1,800.8 | 1,721.3 | 4.6 |
| Adjusted EBIT1 | 8.0 | 2.1 | 286.8 | 21.0 | 20.5 | 2.6 |
| EBIT | 6.8 | 0.8 | 764.5 | 20.4 | 15.3 | 33.0 |
| Adjusted EBIT % | 1.7 | 0.5 | 1.2 | 1.2 | ||
| EBIT % | 1.5 | 0.2 | 1.1 | 0.9 | ||
| Profit for the period | 4.1 | -0.2 | 11.3 | 8.0 | 40.7 | |
| Earnings per share, EUR | 0.02 | -0.00 | 0.06 | 0.04 | 40.7 | |
| Net cash flow from operating activities | 45.7 | 27.3 | 58.3 | 84.4 | ||
| Gearing, % | 75.0 | 76.1 | ||||
| Equity ratio, % | 14.8 | 15.5 | ||||
| Return on capital employed (ROCE), % | 5.0 | 4.1 | ||||
| 1 Adjusting items are specified in note 12. Adjusting items. | ||||||
In order to reflect the underlying business performance and to enhance comparability between financial periods Oriola discloses certain performance measures of historical performance, financial position and cash flows, as permitted in “Alternative performance measures” guidance issued by the European Securities and Markets Authority (ESMA). These measures should not be considered as a substitute for measures of performance in accordance with the IFRS. The calculation methods of these measures are provided in note 11. Alternative performance measures in the notes to this Financial Statements Release.
Disclosure procedure
This stock exchange release is a summary of Oriola Corporation’s Financial Statements Release January–December 2020. The complete report is attached to this release in pdf format and is also available on Oriola’s website at https://www.oriola.com/
Analyst and investor meeting
Oriola Corporation will organise a live-webcast meeting for investors, analysts and the press on Friday, 19 February 2021 at 10.00 a.m. The event can be followed as a live-webcast accessible through this link: https://oriola.videosync.fi/financial-statements-2020.
Publication of the Financial Statements
Oriola Corporation will publish its 2020 Financial Statements by 23 February 2021.
Further information:
Juko Hakala, President and CEO
tel: +358 10 429 2109 email: juko.hakala@oriola.com
Helena Kukkonen, CFO
tel. +358 10 429 2112, email: helena.kukkonen@oriola.com
Distribution:
Nasdaq Helsinki Ltd
Key media
Released by:
Oriola Corporation
Orionintie 5, 02200 Espoo