Oriola Corporation Interim Report January March 2018

Transcription

1 Oriola Corporation Interim Report January March April

2 Oriola /218 Invoicing and Net Sales growing ERP reliability at good level, customer experience improved Oriola s and Kesko s joint venture Hehku opened 17 stores and online shop Healthcare profitable in Enköping distribution center automation project is making good progress Renewal of Group Management Team 2

3 Oriola Key Figures continuing operations Invoicing Net sales Adjusted EBIT /218 adjusted EBIT at comparable EUR/SEK rate EUR 6,7 million 3

4 Adjusted EBIT January March 218 continuing operations Adjusted EBIT, Quarters 14 Adjusted EBIT Q2 Q3 Q4 218 Consumer Services Healthcare Group Items 218 4

5 Business Area January March 218

6 Consumer Segment Focuses on the needs of consumers for products and services related to health and wellbeing Offers expert advice as well as an extensive selection of products in own pharmacies Consistent service experience throughout all service channels, from local pharmacies to online services Pharmacy market in Sweden (Apoteksförening) 17 % 4.2 BEUR 9 % 16 % 4.2 BEUR 83 % Oriola/Kronans Apotek Others 75 % Rx OTC TG 6

7 Swedish Pharmacy retail market Pharmacies Market share (Apoteksförening) 388 Apotek Hjärtat & CURA % 397 Apoteket 396 9% 4% 4% 31% Kronans Apotek Apoteksgruppen % Lloyds Apoteket % Others Pharmacies 21 Established net 21 - Established net 218 Oriola/Kronans Apotek Apoteket Apotek Hjärtat & CURA Apotea Others Lloyds Apoteket Apoteksgruppen

8 Consumer January March 218 continuing operations Adjusted EBIT Pharmacy market grew by 8.2% in Sweden, online sales grew by 43% to 9% of the market Net sales increased by 3.6% in SEK Online sales grew faster than market. Online sales was 2.4% of total sales. Share of OTC and traded goods of net sales 25.6 (26.3)% Hehku result and FX impacted EBIT by EUR -1.6 million Q2 Q3 Q

9 17 Hehku stores and online shop opened in Hehku enters growing wellbeing market in Finland First stores in Helsinki and Vantaa, as well online shop were opened on 25 January 218. The investment in total is estimated to be EUR 25 million. Oriola s share is 5% of the investment and the result. Hehku concept is well appreciated by customers

10 Services Focuses on long-term customer relationship and wide service offering Provides wholesale and logistics services with wide range of expert services for pharmaceutical companies and pharmacies Offers customized wholesale services of OTC and traded goods in Sweden Provides staffing services for Finnish pharmacies Finland Wholesale (LTK and Oriola estimate) Sweden Wholesale (Reveal and Oriola estimate) 57 % 2.3 BEUR 43 % Oriola 59% 4.2 BEUR 41% Oriola Others Others 1

11 Pharmaceutical markets are growing Source: IQVIA MSEK 5 Market growth Sweden 1% MEUR 3 Market growth Finland 8% 45 7% 4 8% 2 5 6% 35 6% 2 5% 3 4% 25 4% 1 5 3% 2 2% 15 2% 1 1% 1 % 5 % 5-1% % % Total Market (MSEK) Annual growth (%) Total Market (MEUR) Annual growth (%) 11

12 Services January March 218 continuing operations Market growth: Sweden 2.% and Finland 1.1% Net Sales increased by 11.6% and in constant currency by 15.1% The increase is mainly due to effect of the distribution agreement with Meda in Sweden Additional costs and inefficiencies impacted adjusted EBIT by EUR -2 million (EUR -4 million in Q4) Changes in distribution agreements in Finland also impacted the profitability negatively Adjusted EBIT Q2 Q3 Q

13 Investments in efficiency of logistics The Enköping new automated warehouse project is progressing according to plan Start-up anticipated in the fourth quarter 218 Phased start-up to minimise the risks ERP and warehouse management system in Espoo is stable and customer satisfaction improved 13

14 Healthcare Segment The Healthcare segment offers pharmaceutical distribution and dose dispensing services for public and private healthcare providers Services to veterinarians in Sweden Dose dispensing market ca. 2, patients in Sweden, 45, in Finland Oriola dose dispensing companies cover services for 7, persons in Sweden and Finland Market share dose dispensing (Oriola estimate) Finland Sweden 4 % 7 % Circa 3 MEUR 45 % Oriola Pharmac YA 39 % Circa 23 MEUR 25 % Oriola Apoteket AB Apotekstjänst 44 % Pharma Dos 36 % 14

15 Healthcare January March 218 continuing operations Net Sales grew by 61%, and in constant currency by 68% Growth driven by Svensk Dos First positive quarter since 216 Finnish Pharmaservice continued to perform well Operation to supply pharmaceuticals to county council hospitals in Västmanland up and running Number of dose dispensing customers 7, Adjusted EBIT Q2 Q3 Q

16 Key Figures January March 218

17 continuing operations Key Figures Change % 1-12 Invoicing ,336.3 Net sales ,527.7 Adjusted EBITDA Adjusted EBIT EBIT Profit for the period Cash flow from operations Net interest bearing debt Gearing %

18 Cash flow including discontinued operations Quarterly net cash flow from operating activities change in cash Q2/216 Q3/216 Q4/216 / Q2/ Q3/ Q4/ /218 Cash Q4 Operating activities Investing activities Financing activities Cash

19 Net Interest-Bearing Debt including discontinued operations Net interest-bearing debt 31 Mar Bank loans (syndicated & term) Dec Commercial papers Advance payment from pharmacies Other Cash and cash equivalents Q2/216 Q3/216 Q4/216 / Q2/ Q3/ Q4/ /218 Net interest-bearing debt Sold trade receivables Gearing, %

20 Operating environment and Outlook for 218

21 Outlook 218 Adjusted EBIT of continuing operations on constant currency basis is estimated to increase from the level (unchanged). 21

22 Oriola and Changing business environment Increased spending on health and wellbeing Digitalisation Comprehensive wellbeing store Hehku Kronans Apotek pharmacies Unique product range for pharmacies and retail stores. Online shops Hehku and Kronans Apotek Digital applications and services in Kronans Cooperation with Doktor.se Online shops for healthcare professionals Digital BtoB customer tools Changing healthcare Dose dispensing Home and mobile nursing Pharmaceutical counseling Specialty pharmaceutical s growth Expert services for pharmaceutical companies Real life research services Modern and efficient logistic services