In This Article:
-
Net Sales: EUR447 million, 19% growth.
-
Organic Growth: 8%.
-
Sales Margin: Improved to EUR41.3 million.
-
Adjusted EBITDA: Declined to EUR7.7 million from EUR7.5 million.
-
Distribution Segment Growth: 22% to EUR359 million.
-
Distribution Segment Adjusted EBITDA: EUR7.1 million, 13% improvement.
-
Wholesale Segment Growth: 9% to EUR8.8 billion.
-
Wholesale Segment Adjusted EBITDA: Declined by 34% to EUR2.4 million.
-
Free Cash Flow: EUR25 million, improved from EUR10 million last year.
-
Net Interest Bearing Debt: EUR64 million.
-
Cash Equivalents: EUR135 million.
-
Equity Ratio: Declined to 14%.
-
Kronans Apotek E-commerce Growth: Double-digit growth.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Oriola Corp (FRA:O5O) reported a strong net sales growth of 19% in Q1 2025, with organic growth at 8%.
-
The sales margin improved to EUR 41.3 million, supported by the distribution segments.
-
Customer satisfaction reached an all-time high in both countries, indicating strong customer relations.
-
The acquisition of MedInfo in Denmark expands Oriola's Nordic footprint in advisory services.
-
Kronans Apotek, a joint venture, achieved double-digit growth in the e-commerce sector and increased market share in physical pharmacies.
Negative Points
-
Adjusted EBITDA declined due to higher costs, particularly in the wholesale segment.
-
The pharmaceutical market in Finland showed a decline, impacting sales negatively.
-
Challenges in medicine availability persist in Europe, with no immediate improvement expected.
-
The unfavorable product mix in the wholesale segment led to a decline in profitability.
-
The ERP project incurred significant costs, impacting the financial results.
Q & A Highlights
Q: Could you elaborate on the OpEx and cost increases, and the impact of strategic investments in the wholesale segment? A: Mats Danielsson, CFO, explained that the cost increases are due to investments in personnel and digital initiatives in the wholesale segment. Additionally, there has been volatility in ordering patterns, requiring more staffing and leading to higher costs than anticipated. Katarina Gabrielson, CEO, added that the expansion in business personnel is part of the strategic plan, which wasn't comparable to last year's figures.
Q: What factors contributed to the strong top-line growth in Q1? A: Katarina Gabrielson, CEO, noted that growth in the distribution segment was driven by market growth, particularly in Sweden. The wholesale segment benefited from working with more customers and channels, exceeding market growth. The company's focus on customer relationships and confidence also played a significant role in the positive growth.