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Oriola Corporation's Half Year Financial Report January-June 2017
21.7.2017
Oriola Corporation Stock Exchange Release 21 July 2017 at 8.30 a.m.
Oriola Corporation's Half Year Financial Report January-June 2017
Financial performance April-June 2017, continuing operations
* Invoicing decreased by 3.4 (increased 7.6) per cent to EUR 844.2 (873.6)
million
* Net sales decreased by 4.8 (increased 0.3) per cent to EUR 387.5 (407.0)
million
* Adjusted EBITDA decreased by 5.3 (increased 2.8) per cent to EUR 19.9 (21.0)
million
* Adjusted EBIT was EUR 13.0 (14.5) million
* Profit for the period totalled EUR 8.3 (9.5) million and earnings per share
were EUR 0.05 (0.05)
Financial performance January-June 2017, continuing operations
* Invoicing decreased by 3.1 (increased 6.4) per cent to EUR 1,641.6 (1,693.5)
million
* Net sales decreased by 5.0 (decreased 1.2) per cent to EUR 754.9 (794.5)
million
* Adjusted EBITDA decreased by 7.1 (increased 4.9) per cent to EUR 37.8 (40.7)
million
* Adjusted EBIT was EUR 24.1 (28.1) million
* Profit for the period totalled EUR 15.8 (19.2) million and earnings per
share were EUR 0.09 (0.11)
Outlook for 2017
Despite the recent improvements in the performance of the Consumer business, the
result of the Business Area in 2017 will remain below 2016 level. The go-live of
the IT systems in Finland, planned for June, is postponed to the third quarter
of 2017. The delay will result in additional costs in the Services Business Area
in 2017. In the Healthcare business the costs for starting the Swedish dose
dispensing production for the Norrland region are higher than anticipated, and
the result of the Healthcare Business Area will stay negative in 2017.
Oriola has decided to divest its businesses in the Baltic countries. In the Half
Year Financial report the Baltic businesses will be classified as discontinued
operations and the assets and related liabilities will be classified as Assets
for sale. The net sales of the Baltic businesses in 2016 were EUR 54 million and
the Adjusted EBIT EUR 1.2 million.
Oriola's and Kesko's joint health and wellbeing store chain was approved by the
competition authorities in June 2017, and the joint venture agreement was
finalized on June 30. Oriola will report 50 per cent of the result of the joint
venture in the Consumer Business Area EBIT. The joint venture is expected to be
loss making during the build-up phase 2017 - 2019. Oriola's share of the loss in
2017 is estimated to be EUR 1.5 million.
Oriola revises the guidance for 2017; The Adjusted EBIT of continuing operations
on constant currency basis is estimated to decrease from the 2016 level. The
adjusted EBIT from continuing operations at comparable currencies, was EUR 59.3
million in 2016.
The previous guidance, published 13 February 2017 and repeated 28 April 2017,
was that the Adjusted EBIT on constant currency basis will stay at 2016 level
which was EUR 61.1 million.
President and CEO Eero Hautaniemi:
In the second quarter the sales of the Consumer business in Sweden was at
previous year's level in local currency, and the market share remained stable
compared to the first quarter of 2017. The growth of the online sales during the
second quarter reached 91 per cent and exceeded market growth. The joint venture
of Oriola and Kesko received the approval of the competition authority in June.
For Oriola the joint venture is a strategic entry into the Finnish consumer
business.
The new distribution agreement in Sweden with Meda started in the second
quarter. The related investment into our Mölnlycke warehouse was completed and
taken into operation. The IT system go-live in Finland, planned for June, was
postponed to the third quarter. According to our strategy we continued to expand
our service offering to pharmaceutical companies and pharmacies. We signed the
agreement to acquire a Swedish services provider, ICTHS Health Support AB in
July.
The number of people served by our dose dispensing services grew by more than
20,000 in the first half of 2017 and currently our services reach some 67,000
persons in Sweden and Finland. The ramp up of production for Norrland region in
Sweden has taken more time than originally anticipated, and that has affected
the first half year's business result.
We have chosen to concentrate our resources on developing the Consumer, Services
and Healthcare businesses in Sweden and Finland. Consequently, we have decided
to divest our assets in the Baltic countries.
Key figures, continuing
operations 2017 2016 Change 2017 2016 Change 2016
EUR million 4-6 4-6 % 1-6 1-6 % 1-12
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Invoicing 844.2 873.6 -3.4 1,641.6 1,693.5 -3.1 3,364.2
Net sales 387.5 407.0 -4.8 754.9 794.5 -5.0 1,588.6
Adjusted EBITDA 19.9 21.0 -5.3 37.8 40.7 -7.1 85.4
Adjusted EBITDA % 5.1 5.2 5.0 5.1 5.4
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Adjusted EBIT( 1)) 13.0 14.5 -10.1 24.1 28.1 -14.3 59.9
EBIT 12.7 13.7 -7.4 23.2 27.3 -14.8 57.6
Adjusted EBIT % 3.4 3.6 3.2 3.5 3.8
EBIT % 3.3 3.4 3.1 3.4 3.6
Profit for the period 8.3 9.5 -12.1 15.8 19.2 -17.8 41.8
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Earnings per share, EUR,
continuing operations 0.05 0.05 -12.1 0.09 0.11 -17.8 0.23
Earnings per share, EUR,
discontinued operations 0.00 0.00 -67.1 0.00 0.00 7.7 0.01
Net cash flow from operating
activities (2)) 51.3 21.7 36.7 -5.1 40.1
Gross capital expenditure 24.8 35.4 88.6
Total assets (2)) 917.5 934.1 925.4
Net interest-bearing debt (2)) 84.4 66.2 72.3
Gearing, % (2)) 43.5 35.8 35.2
Net debt / 12-month EBITDA
(2)) 1.0 0.8 0.8
Equity per share, EUR (2)) 1.07 1.02 1.13
Equity ratio, % (2)) 21.7 20.6 22.7
Return on equity (ROE), % (2)) 17.1 21.9 21.4
Return on capital employed (ROCE), %( 2)) 15.2 17.6 17.8
Average number of shares, 1000 pcs( 3) ) 181,389 181,389 181,389
Average number of personnel 2,701 2,260 2,425
Number of personnel at the end of the
period 2,741 2,307 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 Half Year
Financial Report January-June 2017. The complete report is attached to this
release in pdf format and is also available on Oriola's website at
www.oriola.com/investors.
Analyst and investor meeting
Oriola Corporation will organize a meeting for investors, analysts and the press
on Friday, 21 July 2017 at 10.00 a.m. at Hotel Scandic Simonkenttä, meeting room
Tapiola, Simonkatu 9, 00100 Helsinki, Finland.
Next financial report
Oriola Corporation will publish its interim report for January-September 2017 on
25 October 2017.
Further information:
Eero Hautaniemi,
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola.com
Sari Aitokallio
CFO
tel. +358 (0)10 429 2112
e-mail: sari.aitokallio@oriola.com
Distribution:
NASDAQ Helsinki Ltd
Key media
Released by:
Oriola Corporation
Orionintie 5, 02200 Espoo
www.oriola.com