In January – March, Oriola’s net sales increased to EUR 482.3 million from EUR 450.0 million in the comparison period. The average forecast for the three analysts in the Factset dataset was EUR 461.5 million.
Oriola’s comparable adjusted operating profit improved from EUR 0.3 million to EUR 11.5 million, compared to a forecast of EUR 4.9 million.
The company is renewing its reporting. The above figures include continuing and discontinued operations. The change in reporting corresponds to the change in Oriola’s operating model published in October 2021 and the framework agreement published in February 2022 Euroapothecan which, if implemented, will merge the companies ’pharmacy businesses in Sweden.
In the continuing operations, the previously reported business areas Pharma and Retail have been merged into a new Oriola Services segment, and the discontinued operations will include the Consumer segment, ie the Swedish pharmacy business, which is planned to be merged with Euroapotheca’s Apoteksgruppen.
In continuing operations, net sales increased from EUR 346.4 million to EUR 372.7 million in the first half of the year and comparable adjusted operating profit from EUR 0.9 million to EUR 4.7 million.
Oriola reiterates its previous guidance that it expects adjusted operating profit to grow from the 2021 level this year.
The outlook is based on the current group structure, including both continuing operations and discontinued operations. Comparable adjusted operating profit in 2021 was EUR 26.3 million.
The Covid-19 pandemic continues, but its severity and duration in Oriola’s operating environment are difficult to assess. In addition, the recent general acceleration in inflation and related cost pressures could have a significant impact on Oriola’s profitability.
Sales growth and efficiency were reflected in the result
“Both Oriola’s continuing operations and discontinued operations performed well. This was due to stronger demand and sales growth, as well as the progress of measures aimed at a turnaround, in particular the streamlining of operations. In addition, the strong development of dose distribution continued, ”said the interim CEO Katarina Gabrielson comments in the interim report.
During the first quarter of the year, the company continued to implement a short-term action plan to ensure Oriola’s turnaround.
“We continued to cut costs, improve operational efficiency and develop commercial expertise in many areas. An important step in streamlining operations was the transition to a new operating model at the beginning of the year. In addition, in March we announced the sale of the personnel services business to pharmacies in Finland. ”
According to Gabrielson, the company is committed to continuing measures to ensure a turnaround in earnings in four priority areas. The focus areas are cost savings, efficient working capital management, customer relationship management and the development of commercial expertise. The effects of these measures will be seen gradually during 2022.