Oriola Corporation’s Financial Statements Release 1 January – 31 December 2021

Oriola Corporation Stock Exchange Release 18 February 2022 at 8.30 a.m.

Oriola Corporation’s Financial Statements Release 1 January – 31 December 2021

Q4 2021: Turnaround progressing – profitability continued to improve

October–December 2021 highlights

• Invoicing increased by 7.6% to EUR 1,062.0 (986.6) million. On a constant currency basis invoicing increased by 6.5% and was EUR 1,050.9 million.
• Net sales increased by 7.0% to EUR 499.0 (466.2) million. On a constant currency basis net sales increased by 5.9% and were EUR 493.7 million.
• Adjusted EBIT was EUR 11.6 (8.0) million. On a constant currency basis the adjusted EBIT was EUR 11.7 million.
• Profit for the period totalled EUR 5.3 (4.1) million and earnings per share were EUR 0.03 (0.02).

January–December 2021 highlights

• Invoicing increased by 5.2% to EUR 3,959.1 (3,764.9) million. On a constant currency basis invoicing increased by 2.7% and was EUR 3,868.3 million.
• Net sales increased by 4.5% to EUR 1,882.4 (1,800.8) million. On a constant currency basis net sales increased by 1.9% and were EUR 1,835.9 million.
• Adjusted EBIT was EUR 26.3 (21.0) million. On a constant currency basis the adjusted EBIT was EUR 25.6 million.
• Profit for the period totalled EUR 11.3 (11.3) million and earnings per share were EUR 0.06 (0.06).
• The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.04 (0.03) per share would be paid for 2021.

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 “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 in note 11. Alternative performance measures in the notes to this Financial Statements Release.

Outlook for 2022

The adjusted EBIT is estimated to increase from the 2021 level.

The COVID-19 pandemic continues and severity as well as duration of the pandemic remain unclear in Oriola’s operating environment. Furthermore, the recent overall inflationary increases and related cost pressures may have a significant impact on Oriola’s profitability.

The outlook is based on current group structure.

CEO Elisa Markula:

“For Oriola, year 2021 was the beginning of a transformation. We defined turnaround activities and initiated the first actions. Consequently, Oriola improved its full year adjusted EBIT to EUR 26.3 million, which is 25% higher than in 2020. Increased profitability was driven by rigorous turnaround actions during the year and positive market demand during the second half of the year.

In the fourth quarter the adjusted EBIT increased to EUR 11.6 million, which was 45% above 2020. The biggest contributor was Retail thanks to the good performance in dose dispensing and the sales increase of health and wellbeing products. In addition, Consumer improved its profitability driven by increased sales both in physical pharmacies and in e-commerce. In Pharma, underlying performance in distribution business was improving but partly set off by lower sales in Expert Services.

During the second half of the year Oriola’s performance was accelerated thanks to new turnaround actions. We executed strict cost control and improved operational efficiency at Mankkaa and Enköping distribution centres. Furthermore, we implemented the new country-based operating model to reduce complexity and fulfil customers’ needs better. This organisational restructuring will bring us an annual cost saving of at least EUR 7 million. These savings will materialise from the first quarter of 2022 onwards. We will continue the planned turnaround measures consisting of four key elements: cost savings, efficient net working capital management, excellent customer relationship management and commercial excellence. The impact of these actions will gradually become visible during 2022.

Year 2021 ended with the new pandemic wave challenging again our operations due to the increased absence rates of our personnel. As a critical supplier of the pharmaceuticals, we have done our utmost to secure deliveries to the pharmacies and hospitals as well as to the Swedish consumers through our pharmacies. I want to thank all our employees for taking the extra mile as well as customers and business partners for the good cooperation during these extraordinary times.”

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Financial Statements Release January–December 2021. 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

Oriola Corporation will organise a live-webcast meeting for investors, analysts and the press on Friday, 18 February 2022 at 10.00 a.m. The event can be followed as a live-webcast accessible through this link: https://oriola.videosync.fi/financial-statements-2021.

Publication of the Financial Statements

Oriola Corporation will publish its 2021 Financial Statements by 22 February 2022.

Further information:

Elisa Markula
CEO
Tel. +358 10 429 2109
Email: elisa.markula@oriola.com

Sari Pohjonen
CFO
Email: sari.pohjonen@oriola.com

Distribution:
Nasdaq Helsinki Ltd
Key media

Released by:
Oriola Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo
www.oriola.com