Oriola Corporation Stock Exchange Release 30 October 2025 at 8.30 a.m. EET

Oriola Corporation's Interim Report January-September 2025

Sales margin growth and improved adjusted EBITDA

July-September 2025 financial highlights

• Invoicing increased by 9.8 % to EUR 1,018.6 (927.7) million.
• Net sales increased by 9.2% to EUR 463.3 (424.4) million.
• Sales margin increased by 6.3% to EUR 40.0 (37.7) million.
• Adjusted EBITDA was EUR 9.6 (8.4) million.
• EBITDA was EUR 7.0 (4.9) million including adjusting items of EUR -2.6 (-3.5) million.
• Profit for the period totalled EUR 1.7 (-1.9) million and earnings per share were EUR 0.01 (-0.01).
• Free cash flow was EUR -9.2 (-3.9) million.

January-September 2025 financial highlights

• Invoicing increased by 10.9% to EUR 3,091.4 (2,788.3) million.
• Net sales increased by 13.3% to EUR 1,404.2 (1,239.0) million.
• Sales margin increased by 5.3% to EUR 123.6 (117.3) million.
• Adjusted EBITDA was EUR 25.2 (24.1) million.
• EBITDA was EUR 14.5 (20.2) million including adjusting items of EUR -10.7 (-3.9) million.  
• Profit for the period totalled EUR -9.3 (-2.3) million and earnings per share were EUR -0.05 (-0.01).
• Free cash flow was EUR 11.6 (4.2) million.

1 Adjusting items are specified in note Adjusting items on page 18.

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

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 introduced 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:

I am pleased with our third-quarter results. They confirm that we are on the right strategic path towards becoming the leading specialist in the wholesale of pharmaceuticals and health products.

We delivered solid results in the third quarter, with growth in both net sales and sales margin, and a year-on-year improvement in adjusted EBITDA. Our distribution business continued to perform strongly and steadily regardless the operating environment, where consumer confidence was still weak due to the overall uncertainty. The pharmaceutical distribution market in Sweden showed growth, while the Finnish market was weaker.

In the third quarter, net sales increased by 9% to EUR 463 million, and the sales margin reached EUR 40.0 (37.7) million, both driven by the Distribution and Wholesale segments. Adjusted EBITDA increased to EUR 9.6 (8.4) million. Although earlier vaccine deliveries led to high volumes and increased operating expenses towards the end of the quarter, our supply chain operations remained stable thanks to strategic initiatives implemented. For instance, we have expanded our warehousing capacity.

In the Distribution segment, net sales increased by 6% to EUR 373 million, driven by volume growth across both our existing portfolio and new customer accounts. Earlier vaccine deliveries compared to the previous year and overall market growth also contributed. Operating expenses increased mainly due to high volumes, including the need for additional warehouse capacity, and increased personnel costs. Despite the higher cost level, adjusted EBITDA increased to EUR 8.4 (7.1) million. Our strategic focus to build strong partnerships has brought good results - customer satisfaction has continued to improve and we have successfully retained all existing accounts. We are actively pursuing new business opportunities, with several new distribution agreements expected to contribute positively from the second half of next year.

In the Wholesale segment, net sales grew by 23% to EUR 91 million, supported by strong development in parallel imports in Sweden and solid performance in Finland, particularly in sales to veterinarians and in special-licensed medicines. Despite the sales growth, adjusted EBITDA remained at the previous year's level of EUR 3.1 (3.1) million, impacted by an unfavourable product mix and increased operating expenses, including personnel costs and planned marketing initiatives. For example, we recently refreshed our health and wellbeing brand, Apteekkarin, to better align with the expectations of today's consumers. Known for its good quality-to-price ratio, the brand is available exclusively in Finnish pharmacies. 

In advisory business, the positive development in digital and data services continued with double-digit growth. We have also focused on new customer acquisition with positive impact expected next year, and on building a partner network to strengthen our capabilities for EU-wide assignments.

Our strategic investment to renew Oriola's ERP (enterprise resource planning) and WMS (warehouse management systems) is progressing and we are entering deployment's first phase in Sweden.

During the quarter, Oriola was awarded the EcoVadis gold medal for sustainability for the third consecutive year. This recognition emphasises the importance of continuous improvement and integrating sustainability into our daily operations. 

In the joint venture company, Kronans Apotek, the market share remained stable at 20.9% during the third quarter, in line with the second quarter. Total sales increased by 3.0% compared with last year, driven by growth in both brick-and-mortar and e-commerce channel. The ERP integration has progressed according to plan and is expected to be completed in the fourth quarter. Completing the ERP also means finalising the integration process and setting a stable foundation for the growth.

As we approach year-end, it is essential that we stay focused on driving sales growth, improving margins and managing our cost base effectively.

I want to extend my warmest thanks to the entire Oriola team for your dedication and achievements. Your commitment is what enables us to move forwards.

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation's Interim Report January-September 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/q3-2025  

Financial calendar

Oriola will publish its Financial Statements Release for 1 January-31 December 2025 on Wednesday 25 February 2026.

The publication dates of the financial reports in 2026 are as follows:

• Interim Report 1-3/2026 on Wednesday 29 April 2026
• Half-Year Report 1-6/2026 Friday 17 July 2026
• Interim Report 1-9/2026 on Thursday 29 October 2026

Oriola Corporation's Annual General Meeting is planned to be held on Wednesday 25 March 2026. Oriola's Board of Directors will convene the Annual General Meeting at a later date. The Annual Report 2025 will be published during week 10 (latest 4 March 2026).

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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