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Oriola-KD Corporation's Financial Statements Release 2016
13.2.2017
Oriola-KD Corporation Stock Exchange Release 13 February 2017 at 8.30 a.m.
Oriola-KD Corporation's Financial Statements Release 2016
Financial performance October-December 2016
* Invoicing increased by 1.7 (5.3) per cent to EUR 872.7 (858.0) million
* Net sales increased by 0.9 (0.8) per cent to EUR 424.8 (420.9) million
* Adjusted EBITDA increased by 3.8 (1.3) per cent to EUR 21.8 (21.0) million
* Adjusted operating profit was EUR 15.3 (15.3) million
* Profit for the period totalled EUR 10.8 (12.4) million and earnings per
share were EUR 0.06 (0.07)
Financial performance January-December 2016
* Invoicing increased by 4.8 (6.6) per cent to EUR 3,420.0 (3,262.2) million
* Net sales increased by 1.0 (0.9) per cent to EUR 1,642.1 (1,626.3) million
* Adjusted EBITDA increased by 4.1 (2.6) per cent to EUR 86.8 (83.4) million
* Adjusted operating profit was EUR 61.1 (60.8) million
* Adjusted operating profit with comparable EUR/SEK rate was EUR 61.7 million
* Profit for the period totalled EUR 42.8 (44.5) million and earnings per
share were EUR 0.24 (0.25)
Outlook for 2017
Oriola-KD is undergoing a major development phase which started in 2015 and is
estimated to be completed by the end of 2018. The costs related to these
development projects and the intensified competition in the Swedish retail,
especially online, will negatively impact the 2017 profitability.
Adjusted operating profit (Adjusted EBIT) on constant currency basis is
estimated to remain at 2016 level.
President and CEO Eero Hautaniemi:
Oriola-KD's business grew at the pace of the market in 2016. The growth was
above the market in Services business, and weaker in the Consumer business. The
profitability was supported by the efficiency improvement in the logistics, and
the continued favourable development of the sales mix in the Consumer business.
We are successfully executing our strategy in all Business areas. In Consumer
business we opened 11 new pharmacies in good locations in Sweden, and closed 3
pharmacies in locations where the customer traffic no longer supported the
sales. We launched new online application to improve our service to prescription
customers. In 2016 our online sales were two per cent of the total sales and
continue to have good growth potential.
As a result of increasing competition, especially online, we will intensify our
focus on efficient pharmacy operations, establishment strategy and dynamic
online offering in our Consumer business. Despite the increasing competition and
14 new pharmacies the result at the comparable EUR/SEK rate stayed at the
previous year level in 2016.
In Services business we extended our services offering to pharmaceutical
companies and to pharmacies by acquiring Farenta Oy. We are also amidst a three-
year development phase as we are implementing a new operating platform and
upgrading the automation level of our distribution centres. Still we were able
to reach an all-time high result in Services in 2016.
We started the new business area Healthcare by acquiring dose dispensing
companies both in Sweden and in Finland and were successful in increasing the
number of persons served by us. The new Business area developed well and was
able to deliver a positive contribution already during its first year.
The pharmaceutical distribution and dispensing is very much in the public
discussion, both in Sweden and in Finland. The pharmacy trade was opened to
competition in Sweden almost a decade ago. As a consequence of the deregulation,
the availability of pharmacy services has improved significantly and the patient
safety has remained on a high level. The number of pharmacies has increased by
over 400, the pharmacies have continued to serve the sparsely populated areas
and the competition has lowered the prices of the freely traded products. The
customer feedback has been positive. In Finland the discussion has started to
acknowledge these facts and the willingness to consider new regulation is
increasing.
Our personnel has been working hard with all of our development programs while
implementing the new business structure and continuing to serve our customers
each and every day. With this dedication to develop our company we are set to
continue to improve our businesses and performance.
Impact of new ESMA guidelines
New ESMA (European Securities and Markets Authority) guidelines on Alternative
Performance Measures (APMs) are effective for the financial year 2016. Oriola-KD
presents APMs to reflect the underlying business performance and to enhance
comparability between financial periods. APMs should not be considered as a
substitute for measures of performance in accordance with the IFRS. As of Q1
2016, Oriola-KD relabels the previously referenced "excluding non-recurring
items" with "adjusted". Reporting segments' operating profit is reported
excluding adjustment items. In addition Oriola-KD uses "invoicing" as the
measure to describe the business volume.The reconciliation of the alternative
performance measurements to performance measurements defined by IFRS are
presented at the end of this interim report.
Key figures 2016 2015 Change 2016 2015 Change
EUR million 10-12 10-12 % 1-12 1-12 %
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Invoicing 872.7 858.0 1.7 3,420.0 3,262.2 4.8
Net sales 424.8 420.9 0.9 1,642.1 1,626.3 1.0
Adjusted EBITDA 21.8 21.0 3.8 86.8 83.4 4.1
Adjusted EBITDA % 5.1 5.0 5.3 5.1
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Adjusted operating profit( 1)) 15.3 15.3 0.4 61.1 60.8 0.4
Operating profit 14.1 17.3 -18.3 58.8 62.6 -6.0
Adjusted operating profit % 3.6 3.6 3.7 3.7
Operating profit % 3.3 4.1 3.6 3.8
Profit for the period 10.8 12.4 -12.9 42.8 44.5 -3.8
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Earnings per share, EUR 0.06 0.07 -13.2 0.24 0.25 -5.9
Net cash flow from operating
activities 25.8 30.5 40.1 85.6
Gross investments, EUR million 88.8 20.4
Total assets 925.4 946.9
Net interest-bearing debt 72.3 6.6
Gearing, % 35.2 3.4
Net debt / 12-month EBITDA 0.8 0.1
Equity per share, EUR 1.13 1.07
Equity ratio, % 22.7 21.1
Return on equity (ROE), % 21.4 29.1
Return on capital employed
(ROCE), % 17.8 19.9
Average number of shares, 1000
pcs (2) ) 181,389 177,502
Average number of personnel 2,582 2,327
Number of personnel at the end
of the period 2,821 2,353
(1)) Adjustment items are specified in table "Adjusting items included in
Operating Profit"
(2)) Treasury shares held by the company not included
Disclosure procedure
This stock exchange release is a summary of Oriola-KD Corporation's Financial
Statement release January-December 2016. The complete report is attached to this
release in pdf format and is also available on Oriola-KD's website at
www.oriola-kd.com/investors.
Analyst and investor meeting
Oriola-KD Corporation will organize a meeting for investors, analysts and the
press on Monday, 13 February 2017 at 10.00 a.m. at Hotel Scandic Simonkenttä,
meeting room Tapiola, Simonkatu 9, 00100 Helsinki, Finland.
A teleconference on the financial information will be held by Oriola-KD
Corporation on the same day starting at 2.00 p.m. Finnish time, tel.
+44 20 3059 8125, confirmation code "Oriola". The event can be followed live as
a audiocast accessible at www.oriola-kd.com/investors. The language of the
teleconference will be English.
Next interim report
Oriola-KD Corporation will publish its results for the first quarter of 2017 on
28 April 2016.
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 OMX Helsinki Ltd
Key media
Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5, 02200 Espoo
www.oriola-kd.com