Oriola Corporation Stock Exchange Release 29 April 2025 at 8.30 a.m. EEST

Oriola Corporation's Interim Report January-March 2025

Steady growth and progress towards long-term goals - outlook refined

January-March 2025 highlights

• Invoicing increased by 10.1 % to EUR 1,000.2 (908.4) million.
• Net sales increased by 19.2% to EUR 447.1 (375.1) million.
• Sales margin increased by 4.1 % to EUR 41.3 (39.7) million.
• Adjusted EBITDA was EUR 7.5 (7.7) million.
• EBITDA was EUR 6.0 (6.7) million and included adjusting items of EUR -1.6 (-0.9) million mainly related to the implementation costs of the ERP investment and costs related to the sale of Svensk dos AB.
• Loss for the period totalled EUR -5.4 (-2.3) million and earnings per share were EUR -0.03 (-0.01).
• Free cash flow was EUR 25.0 (-10.4) million.

Oriola completed the sale of Svensk dos AB to Apotekstjänst Sverige AB on 1 April 2025. The estimated total consideration in cash received in Q2 will be approximately EUR 5.3 million. Loss for the period includes an impairment loss in total of EUR 5.7 million recognised in goodwill and in other non-current assets in dose dispensing in Sweden, presented as asset held for sale in the consolidated statement of financial position.

Outlook for 2025 refined following the sale of Svensk dos AB:

• Oriola completed the sale of Svensk dos AB to Apotekstjänst Sverige AB on 1 April 2025 and has therefore refined its outlook for 2025 as follows: For 2025, Oriola expects the adjusted EBITDA to increase from the previous year (2024: EUR 33.4 million).
• Previous outlook was: For 2025, Oriola expects the adjusted EBITDA excluding the Swedish dose dispensing business to increase from the previous year (2024: EUR 33.3 million).

January-March 2025 excluding Swedish dose business:

• Net sales were EUR 443.4 (372.2) million.
• Adjusted EBITDA was EUR 7.3 (8.2) million.

1 Adjusting items are specified in note Adjusting items on page 20.

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 the "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 under Key financial indicators in this Interim Report.

Outlook for 2025 refined

Oriola completed the sale of Svensk dos AB to Apotekstjänst Sverige AB on 1 April 2025 and has therefore refined its outlook for 2025 (change underlined):

In 2025, the pharmaceutical distribution market is expected to continue to grow. Value growth is expected to be driven by high-value pharmaceuticals and products requiring advanced logistics. The uncertainty in the geopolitical environment remains, and the availability issues of certain pharmaceuticals are expected to continue.

Consumer confidence is expected to remain weak, which may have an impact on the wholesale market. Typically in economic uncertainty, consumers tend to shift purchases to low-price categories. 

For 2025, Oriola expects the adjusted EBITDA to increase from the previous year (2024: EUR 33.4 million). The expectation of improved adjusted EBITDA is based on growing markets and strategy execution.

From the start of 2025, Oriola introduces adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) as a new alternative performance measure. EBITDA is widely used by management and investors when assessing the profitability of a company and cash flow generation.

Previous outlook for 2025 (published on 4 March 2025):

In 2025, the pharmaceutical distribution market is expected to continue to grow. Value growth is expected to be driven by high-value pharmaceuticals and products requiring advanced logistics. The uncertainty in the geopolitical environment remains, and the availability issues of certain pharmaceuticals are expected to continue.

Consumer confidence is expected to remain weak, which may have an impact on the wholesale market. Typically in economic uncertainty, consumers tend to shift purchases to low-price categories. 

For 2025, Oriola expects the adjusted EBITDA excluding the Swedish dose dispensing business to increase from the previous year (2024: EUR 33.3 million). The expectation of improved adjusted EBITDA is based on growing markets and strategy execution.

From the start of 2025, Oriola introduces adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) as a new alternative performance measure. EBITDA is widely used by management and investors when assessing the profitability of a company and cash flow generation.

CEO Katarina Gabrielson:

The year started with good sales growth and improved sales margin. Customer satisfaction continued to improve and reached an all-time high in the first quarter. Looking at the overall operating environment, the uncertainty in the economy has continued to affect consumer confidence, due to which particularly in Finland the market was softer.  

In the first quarter, Oriola's net sales grew by 19% to EUR 447 million, driven by both Distribution and Wholesale segments. Sales margin was EUR 41.3 (39.7) million, with improvement supported by the Distribution segment. The adjusted EBITDA was EUR 7.5 (7.7) million, reflecting a decrease compared with the previous year, primarily due to increased operating expenses. The higher costs resulted from planned investments in wholesale growth, aligned with our refined strategy. Additionally, costs were negatively impacted by customer ordering pattern and earlier vaccine deliveries in Sweden, which this year began already in the first quarter.

In the Distribution segment, net sales grew by 22% to EUR 359 million. Organic growth was 8% and supported by solid volumes in the Swedish distribution business, while the weak market situation affected sales in Finland. Adjusted EBITDA was EUR 7.1 (6.3) million, with an improvement that reflects the positive impact from net sales growth and a favourable product mix, offsetting higher operating expenses. During the start of this year, we successfully onboarded new customers. These partnerships reflect our strengths in advanced logistics capabilities and a cross-market presence. We continue to enhance customer centricity to build strong partnerships with both existing and new customers. Another important focus area is to develop our capabilities and service portfolio ahead of the planned pharmacy market deregulation in Finland.

In the Wholesale segment, net sales grew by 9% to EUR 88 million. Growth was driven by the Swedish wholesale business, while sales in Finland was impacted by the weak market situation and strikes in the retail sector. Adjusted EBITDA declined to EUR 2.4 (3.6) million. Decline in profitability was related to increased operating expenses and an unfavourable product mix. During the first quarter, we took important steps to accelerate and build upon our cross-market presence. We have continued to expand our portfolio and deepen collaboration with our e-com customers across our markets. In Finland, we have also strengthened our focus on the retail channel and successfully gained new retail channel customers. In advisory business, we strengthened our Nordic footprint in medical information and patient support programmes by acquiring MedInfo in Denmark and we have continued to successfully expand our data-driven service, Oriola Insights, both of which support our efforts to grow the advisory business. 

Staying close to our customers, listening to their needs and growing together with them as partners is one of our strategic targets. Our focus on enhancing customer centricity has provided good results, with customer satisfaction consistently improving and recently reaching an all-time high. Regularly measuring and monitoring our long-term success in this area is crucial, as it provides valuable insights to help us continuously improve and become better.

Our strategic investment to renew Oriola's ERP (enterprise resource planning) and WMS (warehouse management systems) has proceeded according to plan. As the first deployment in Sweden approaches, the project has entered the build phase.

During the first quarter, we received positive news about the approval of the appeal against the Swedish Competition Authority's prohibition to the sale of Svensk dos AB to Apotekstjänst Sverige AB. This allowed us to proceed with and finally complete the long sales process on 1 April 2025.

In the joint venture company, Kronans Apotek, e-commerce performance continued strong with double-digit growth in Q1, further improving the e-commerce footprint. Also, the brick-and-mortar operation grew sales in Q1, albeit at a more moderate pace. The growth in both channels resulted in Kronans Apotek improving market share versus last quarter. During Q1, Kronans Apotek also achieved major milestones in the integration with merging into one company, introducing joint systems and progressing with the ERP integration.

I am pleased with our sales and sales margin development in the first quarter, however, particularly due to planned investments in wholesale growth, our cost base has increased from last year. It is important that we, across the company, remain cost conscious and focused on executing our refined strategy. I want to thank everyone at Oriola for their contributions at the start of this year and their continued commitment and hard work.

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation's Interim Report January-March 2025. The complete report is attached to this release in pdf format and is also available on Oriola's website at www.oriola.com.

Analyst and investor meeting at 10.00 a.m.

Oriola's CEO Katarina Gabrielson and CFO Mats Danielsson will present the report at a live webcast meeting today at 10.00 a.m. Join the meeting: https://oriola.events.inderes.com/q1-2025

Financial reporting in 2025

Oriola will publish financial reports in 2025 as follows:

• 18 July 2025: Half Year Report January-June 2025
• 30 October 2025: Interim Report January-September 2025

Further information:

Mats Danielsson
CFO
email: mats.danielsson@oriola.com

Mikael Wegmüller
VP, Communications and Sustainability
email: mikael.wegmuller@oriola.com

Distribution:
Nasdaq Helsinki Ltd
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