Oriola Corporation Stock Exchange Release 30 October 2024 at 8.30 a.m.

Oriola Corporation's Interim Report January-September 2024

Improved profitability

• Invoicing increased by 7.7 % to EUR 927.7 (861.7) million.
• Net sales increased by 18.6% to EUR 424.4 (357.9) million.
• Adjusted EBIT was EUR 5.5 (4.4) million.
• EBIT was EUR 0.2 (-17.1) million and included adjusting items of EUR -5.3 (-21.6) million mainly related to the implementation costs of the ERP investment.
• Profit for the period totalled EUR -1.9 (-20.2) million and earnings per share were EUR -0.01 (-0.11).

• At the end of April, the Swedish Competition Authority announced its decision to prohibit the sale of Svensk dos AB due to negative effects on competition in the market. Apotekstjänst Sverige AB has appealed the decision. The appeal process can take up to 6 months. Oriola will communicate on the next steps in Q4. Oriola announced the sale of Svensk dos AB to Apotekstjänst Sverige AB in October 2023.
• Net sales were EUR 420.6 (355.9) million.
• Adjusted EBIT was EUR 5.4 (5.2) million.

• Invoicing increased by 6.2% to EUR 2,788.3 (2,624.4) million.
• Net sales increased by 11.9% to EUR 1,239.0 (1,107.3) million.
• Adjusted EBIT was EUR 15.3 (11.3) million.
• EBIT was EUR 9.6 (-10.5) million and included adjusting items of EUR -5.7 (-21.8) mainly related to the implementation cost of the ERP investment.
• Profit for the period totalled EUR -2.3 (-17.9) million and earnings per share were EUR -0.01 (-0.10).

• Net sales were EUR 1,228.9 (1,091.6) million.
• Adjusted EBIT was EUR 15.5 (13.3) million.

[][]
Key figures 2024 2023 Change 2024 2023 Change 2023
EUR million 7-9 7-9 % 1-9 1-9 % 1-12
Invoicing 927.7 861.7 7.7 2,788.3 2,624.4 6.2 3,587.7
Net sales 424.4 357.9 18.6 1,239.0 1,107.3 11.9 1,493.8
Adjusted EBIT[1] 5.5 4.4 24.7 15.3 11.3 35.2 16.7
EBIT 0.2 -17.1 101.1 9.6 -10.5 191.3 -5.3
Adjusted EBIT % 1.3 1.2 1.2 1.0 1.1
EBIT % 0.0 -4.8 0.8 -0.9 -0.4
Profit for the -1.9 -20.2 90.4 -2.3 -17.9 87.3 -20.7
period
Earnings per share, -0.01 -0.11 90.4 -0.01 -0.10 87.3 -0.11
EUR
Net cash flow from -5.3 10.1 1.2 -13.3 9.6
operating
activities
Gearing, % -4.6 -0.9 -12.1
Equity ratio, %[ ] 17.7 19.3 18.5
Return on capital 4.9 -4.2 -1.6
employed (ROCE), %

1 Adjusting items are specified in note Adjusting items on page 17.

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 2024

In 2024, the pharmaceutical distribution market is expected to continue to grow. A continuation of a weak consumer confidence might impact the wholesale market development. The recent overall inflationary environment and related cost pressures may have an impact on Oriola's profitability. 

Oriola expects the adjusted EBIT, excluding the dose dispensing business in Sweden, for the year 2024 to increase from the adjusted EBIT for 2023 (EUR 19.5 million). 

CEO Katarina Gabrielson:

Our solid performance since the start of this year continued in the third quarter, with increased net sales and profitability compared with the previous year. Also, in the pharmaceutical distribution market, the steady growth continued driven by a high demand for high-value pharmaceuticals.

Oriola's net sales in Q3 grew to EUR 424 million, driven by the Distribution segment. Adjusted EBIT increased from the previous year to EUR 5.5 (4.4) million. This improvement was supported by net sales growth and lower freight costs compared with the previous year. When excluding the impact of the Swedish dose dispensing business, the adjusted EBIT improved to EUR 5.4 (5.2) million. Oriola's financial position remained strong.

In the Distribution segment, net sales grew by 23% to EUR 351 million, largely due to a customer shifting from consignment to our inventory. Organic growth was 5%, driven by higher market volumes and price increases. Profitability improved to EUR 5.0 (3.5) million, supported by net sales growth and lower costs compared with last year. Our market share was stable in Finland, while we saw a decline in market share in Sweden. During the quarter we signed new and renewed existing distribution agreements. One of the new agreements is with a cross-market customer, with volumes starting in Q1 2025. Additionally, we entered the optical sales channel in Sweden, where we see opportunities also for the wholesale business.

In the Wholesale segment, net sales remained at EUR 74 million, the same as last year. While the Finnish wholesale business was stable, volumes in the Swedish wholesale business declined. Profitability was at last year's level. As part of our strategy to grow the wholesale business, we added new products and suppliers to our portfolio. We gained new listings and introduced new products in the Finnish market, and introduced our own brand, Dexal, in Sweden.

Since launching our refined strategy a year ago, we have made steady progress towards becoming the leading specialist in wholesale of pharmaceuticals and health products. This reflects the full commitment and dedication of our management team to our strategy and long-term targets. Our strategic investment to renew our ERP (enterprise resource planning) and WMS (warehouse management systems) is proceeding according to plan. Through this project we have reviewed and harmonised processes to ensure consistency and common ways of working across the company.

For the second consecutive year, we retained our gold sustainability rating in the 2024 EcoVadis assessment. This important achievement recognises our ongoing commitment to integrating sustainability into our daily operations and continuously improving performance. In September, we committed to set near- and long-term company-wide emission reductions in line with science-based net-zero with the SBTi (Science Based Target initiative). We expect the targets to be validated in 2025. 

In the joint venture company, Kronans Apotek, e-commerce sales grew with double digits in Q3, improving the e-commerce footprint. The weaker customer flow in the brick-and-mortar operation resulted in flat sales compared with a year ago. Kronans Apotek is an important strategic partner for us, and we will actively support its value creation as a major shareholder.

I am pleased with our solid performance in the third quarter. These results reflect the dedication of our people and the ongoing support of our valued customers and partners. As we move towards the end of this year, I want to thank everyone at Oriola for their work and commitment.

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation's Interim Report January-September 2024. 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 Q3 Interim Report at a live webcast meeting today at 10.00 a.m. Join the meeting: https://oriola.videosync.fi/q3-2024   

Next financial report

Oriola Corporation will publish its Financial Statements Release for 1 January-31 December 2024 on Tuesday 4 March 2025.

Publication of the Annual Report

Oriola Corporation will publish its Annual Report 2024 during week 11 (latest 12 March 2025).

• Annual General Meeting on Wednesday 2 April 2025
• Interim Report 1-3/2025 on Tuesday 29 April 2025
• Half-Year Report 1-6/2025 on Friday 18 July 2025
• Interim Report 1-9/2025 on Thursday 30 October 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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