In This Article:
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Net Sales: EUR424 million, up 19% year-over-year.
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Organic Growth: 5% due to changes from consignment stock to inventory stock.
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Adjusted EBIT: EUR5.5 million, a growth of 25%.
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Distribution Segment Net Sales: EUR351 million, a 23% increase.
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Distribution Segment Adjusted EBIT: EUR5 million, a 46% improvement.
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Wholesale Segment Net Sales: Flat at EUR74 million.
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Wholesale Segment Adjusted EBIT: EUR7.5 million year-to-date, up from EUR7.1 million.
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Adjusted EBIT Margin - Distribution Segment: 1.3%.
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Adjusted EBIT Margin - Wholesale Segment: 3.2%.
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Net Profit: Improved from a loss of EUR17.9 million last year to a loss of EUR2.3 million.
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Cash Flow: Slightly positive operative cash flow with EUR83.9 million in cash.
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Debt Repayment: EUR51.9 million repaid over the last 12 months.
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Outlook: Expecting adjusted EBIT to increase from EUR19.5 million in 2023.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Oriola Corp (FRA:O5O) reported a 19% increase in net sales, reaching EUR424 million, with organic growth at 5%.
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The adjusted EBIT improved by 25%, reaching EUR5.5 million, driven by growth in the distribution segment and lower freight costs.
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E-commerce sales in Sweden grew by double digits, enhancing Oriola's footprint in a significant market.
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The company has signed new and renewed existing distribution agreements, indicating future growth potential.
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Oriola has successfully introduced new products and suppliers in the wholesale segment, contributing to future growth.
Negative Points
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Challenges in the availability of pharmaceuticals continue in both Sweden and Finland, impacting the business environment.
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The Swedish market share experienced a slight decline, partly due to not having a portfolio in the growing weight loss segment.
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The ERP project costs were higher than expected, with a significant portion being expensed rather than capitalized.
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The integration process with Krono Zute has been more complex than anticipated, delaying the realization of synergies.
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The Swedish dose dispensing business sale is facing regulatory challenges, potentially delaying the exit from this segment.
Q & A Highlights
Q: Why were the ERP-related costs so high compared to Q2? Should we expect similar levels going forward? A: Mats Danielsson, CFO: In Q3, EUR1.9 million was booked as a cost due to a change in accounting principles from last year, which was previously considered capital expenditure. This adjustment reflects the new approach to booking ERP costs.