TAMRO GROUP FINANCIAL STATEMENTS 1 FEBRUARY 2008–31 JANUARY 2009: STRONG RESULT IN A CHALLENGING BUSINESS ENVIRONMENT
Financial year highlights
• Tamro Group’s annual net sales in the financial year 2008/09 amounted to EUR 5,534 (5,605) million, down by 1.3% from the previous year due to the fluctuating exchange rates and the new accounting procedure on some distribution contracts.
• Operating profit improved to an all-time-high EUR 139 (122) million, and the operating margin to 2.5 (2.2)%. Net profit was EUR 93 (89) million.
• Tamro Group further expanded its business through retail acquisitions and the establishment of new pharmacies. The volumes handled by the wholesale division reached record levels, close to the Group’s current operative capacity.
Group key figures (table, see attached pdf)
Outlook for 2009/2010
In the new financial year, Tamro faces some uncertainty but also more opportunities than in the previous years. The effect of the global financial crisis cannot be fully determined yet. However, the operational performance of the company is expected to remain stable and strong despite turmoil in the financial environment.
The deregulation of the Swedish pharmacy market constitutes a major expansion opportunity for Tamro in 2009. For the time being, it is still unclear how the Swedish government will attract new competition to compete with the state-owned Apoteket AB. Tamro is monitoring this development with great interest. Tamro will most likely decide in early summer whether it will participate in the auction process.
The pharmaceutical markets are expected to remain rather stable and even grow somewhat. In Finland the introduction of reference pricing will have a clear negative effect on market value and growth in 2009 but volumes will continue to increase. On average, the Nordic pharmaceutical markets are estimated to grow by 3–5% in local currency during the financial year 2009/10. In the Baltic countries, market growth is expected to be impacted by the unfavourable market conditions. However, the growth is expected to exceed 5%.
Tamro Group President & CEO Jo Langmoen
“During the financial period 2008/09 we continued to improve our result and competitive edge. Despite the challenging business environment influenced by the global financial crisis, we were able to accomplish the best operating result ever and further develop our position as the leading pharmaceutical wholesaler in the Nordic and the Baltic markets. Tamro is strongly committed to efficient and high-quality operations in both the wholesale and retail functions of the pharmaceutical chain across Northern Europe.”
The financial statements for the financial year 2008/09, except Q4 figures, are audited.
TAMRO CORPORATION
Board of Directors
For more information, please contact:
Mr Jo Langmoen, President & CEO, phone +358 20 445 4050
Mr Juha Koponen, Managing Director, Tamro Finland, phone +358 20 445 4041
Mrs Terhi Kivinen, Director, Communications and Corporate Responsibility,
phone +358 40 848 4001, terhi.kivinen@tamro.com
Tamro Group’s Web Annual Report will be published in week 19 at www.tamro.com.