Oriola Corporation Interim report 1 January – 31 March 2020

Oriola Corporation stock exchange release 24 April 2020 at 8.30 a.m.

January–March 2020 highlights

  • Invoicing increased by 7.9% (increased 5.4%) to EUR 965.3 (894.4) million. On a constant currency basis invoicing increased by 9.8% and was EUR 981.7 million.                                          
  • Net sales increased by 15.8% (increased 2.3%) to EUR 459.8 (397.1) million. On a constant currency basis net sales increased by 17.9% and were EUR 468.4 million.
  • Adjusted EBIT was EUR 6.9 (3.7) million. On a constant currency basis the adjusted EBIT was EUR 7.1 million.
  • Profit for the period totalled EUR 5.1 (1.7) million and earnings per share were EUR 0.03 (0.01).
  • COVID-19 pandemic caused a peak in demand for pharmaceuticals and rapidly changed the operating environment.

Business outlook for 2020

The adjusted EBIT on a constant currency basis is estimated to increase from 2019 level.

Oriola’s business outlook for 2020 is based on external market forecasts, agreements with pharmaceutical companies and pharmacies, and management assessments.

President and CEO Robert Andersson on the first quarter of 2020:

”Oriola’s invoicing (EUR 965.3 million, +7.9%) and net sales (EUR 459.8 million, +15.8%) continued to grow during the first quarter of the year compared to last year. On a constant currency basis invoicing grew by 9.8% and net sales by 17.9%. Adjusted EBIT grew by 86.6% to EUR 6.9 million. On a constant currency basis adjusted EBIT was EUR 7.1 million.

The first quarter of the year was exceptional. During March, the COVID-19 pandemic impacted Oriola’s operations strongly in both countries. Consumer behaviour led to unforeseen demand for pharmaceuticals and products for cold and pain relief in pharmacies. In mid-March, pharmaceuticals were prioritised in distribution to ensure patient safety. The exceptional peak in demand increased sales, but also burdened the result through increased personnel and freight costs.

In Consumer, net sales grew by 10.3% on a constant currency basis compared to the same period last year. The change in consumer behaviour accelerated sales during the first quarter of the year with online sales growing by 45%. The growth was especially strong in March, when online sales grew by nearly 100% compared to the same period last year.
 

Pharma continued strong growth in both operating countries. On a constant currency basis invoicing grew by 9.4% and net sales by 24.2% compared to the same period last year. Due to the pandemic, pharmaceutical sales grew especially in March. Profitability was burdened by high freight and distribution centre costs particularly in Sweden. The demand for expert services decreased.

Retail continued growth in the first quarter of the year. On a constant currency basis the net sales grew by 10.9% compared to the same period last year. Retail’s sales grew due to the demand peak for common cold products caused by COVID-19, as well as the growth in dose-dispensing business in Sweden compared to the same period in the last year. High costs in Swedish distribution operations burdened the profitability.

The restrictions on citizens’ mobility, and the burden on public healthcare capacity caused by the pandemic inevitably also impact Oriola’s business. We focus on securing the availability of pharmaceuticals and healthcare products in the society, while taking care of the health and safety of our own personnel.”


Key figures

2020 2019 Change 2019
EUR million 1-3 1-3 % 1-12
Invoicing 965.3 894.4 7.9 3,733.1
Net sales 459.8 397.1 15.8 1,721.3
Adjusted EBIT1 6.9 3.7 86.6 20.5
EBIT 7.5 3.7 101.8 15.3
Adjusted EBIT % 1.5 0.9 1.2
EBIT % 1.6 0.9 0.9
Profit for the period 5.1 1.7 195.0 8.0
Earnings per share, EUR 0.03 0.01 194.9 0.04
Net cash flow from operating activities -0.5 -25.4 84.4
Gearing, % 91.8 129.4 76.1
Equity ratio, % 12.4 15.0 15.5
Return on capital employed (ROCE), % 8.6 3.8 4.1
1 Adjusting items are specified in note 12. Adjusting items.

The figures for Q1-Q3 2019 in this Interim Report have been restated due to an error related to previous periods. For more information on the correction of the error please refer to the 31 December 2019 Annual Financial Statements.

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 Interim Report.

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Interim Report January­­–March 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, 24 April 2020 at 10.00 a.m. The event can be followed as a live-webcast accessible through this link: https://oriola.videosync.fi/q1-2020. Due to the current situation, the event will be arranged only as a webcast.

Further information:

Robert Andersson, President and CEO
tel. +358 10 429 2109, email: robert.andersson@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

https://www.oriola.com/