Oriola Corporation Stock Exchange Release 28 April 2017 at 8.30 a.m.
Oriola Corporation`s Interim Report January-March 2017
Financial performance January-March 2017
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Invoicing decreased by 2.6 (increased 5.2) per cent to EUR 812.5 (834.4) million
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Net sales decreased by 4.9 (decreased 2.4) per cent to EUR 381.7 (401.3) million
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Adjusted EBITDA decreased by 7.9 (increased 7.6) per cent to EUR 18.5 (20.1) million
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Adjusted EBIT was EUR 11.6 (13.9) million
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Profit for the period totalled EUR 8.0 (10.1) million and earnings per share were EUR 0.04 (0.06)
Outlook for 2017
Oriola 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 EBIT on constant currency basis is estimated to remain at 2016 level.
President and CEO Eero Hautaniemi:
The beginning of 2017 was characterized by intense competition in the Swedish retail market. Especially this was the case in Traded Goods. We are developing and improving our competitiveness in the Consumer business with a number of programs focused on Rx availability, pricing and with a new, more streamlined regional organization. We are also actively developing our pharmacy chain and online operation. These programs will have a positive effect from the end of the second quarter onwards.
In the Services business the discontinuation of the distribution of Abbvie pharmaceuticals in Sweden contributed to lower net sales as expected. For the full year 2017 this will be partly offset by the start of distribution of Meda in Sweden, during the second quarter of this year. Profitability was supported by high efficiency in logistic operations. Our new IT-system will go live in Finland in June.
In the Healthcare business dose dispensing for the Norrland region commenced, adding some 19,000 patients and roughly doubling our Swedish dose dispensing volume. The ramp-up of dose production had a negative impact in the first quarter, but will result in a positive effect in the second half of 2017.
Together with Kesko Oyj in Finland, we are planning to enter the Finnish consumer market with a chain of health, beauty and wellbeing stores. The establishment of a joint venture was announced in March 2017, and is subject to the approval of the competition authorities.
| Key figures | 2017 | 2016 | Change | 2016 | |||
| EUR million | 1-3 | 1-3 | % | 1-12 | |||
| Invoicing | 812.5 | 834.4 | -2.6 | 3,420.0 | |||
| Net sales | 381.7 | 401.3 | -4.9 | 1,642.1 | |||
| Adjusted EBITDA1) | 18.5 | 20.1 | -7.9 | 86.8 | |||
| Adjusted EBITDA % | 4.9 | 5.0 | 5.3 | ||||
| Adjusted EBIT 1) | 11.6 | 13.9 | -16.9 | 61.1 | |||
| EBIT | 11.1 | 13.9 | -20.4 | 58.8 | |||
| Adjusted EBIT % | 3.0 | 3.5 | 3.7 | ||||
| EBIT % | 2.9 | 3.5 | 3.6 | ||||
| Profit for the period | 8.0 | 10.1 | -20.7 | 42.8 | |||
| Earnings per share, EUR | 0.04 | 0.06 | -20.8 | 0.24 | |||
| Net cash flow from operating activities | -14.6 | -26.8 | 40.1 | ||||
| Gross capital expenditure | 13.5 | 25.6 | 88.8 | ||||
| Total assets | 908.4 | 950.5 | 925.4 | ||||
| Net interest-bearing debt | 100.7 | 50.9 | 72.3 | ||||
| Gearing, % | 53.5 | 28.2 | 35.2 | ||||
| Net debt / 12-month EBITDA | 1.1 | 0.6 | 0.8 | ||||
| Equity per share, EUR | 1.04 | 1.00 | 1.13 | ||||
| Equity ratio, % | 21.2 | 19.6 | 22.7 | ||||
| Return on equity (ROE), % | 17.2 | 23.2 | 21.4 | ||||
| Return on capital employed (ROCE), % | 14.3 | 18.3 | 17.8 | ||||
| Average number of shares, 1000 pcs 2) | 181,389 | 181,362 | 181,389 | ||||
| Average number of personnel | 2,851 | 2,404 | 2,582 | ||||
| Number of personnel at the end of the period | 2,865 | 2,425 | 2,821 | ||||
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| 2) Treasury shares held by the company not included | |||||||
Disclosure procedure
This stock exchange release is a summary of Oriola Corporation`s Interim Report January-March 2017.
The complete report is attached to this release in pdf format and is also available on Oriola`s website at www.oriola-kd.com/investors.