Oriola Corporation's Half Year Financial Report January-June 2017
July 21 2017 - 12:30AM
Oriola Corporation Stock Exchange
Release 21 July 2017 at 8.30 a.m.
Oriola Corporation's Half
Year Financial Report January-June 2017
Financial performance April-June
2017, continuing operations
- Invoicing decreased by 3.4 (increased 7.6) per
cent to EUR 844.2 (873.6) million
- Net sales decreased by 4.8 (increased 0.3) per
cent to EUR 387.5 (407.0) million
- Adjusted EBITDA decreased by 5.3 (increased 2.8)
per cent to EUR 19.9 (21.0) million
- Adjusted EBIT was EUR 13.0 (14.5) million
- Profit for the period totalled EUR 8.3 (9.5)
million and earnings per share were EUR 0.05 (0.05)
Financial performance
January-June 2017, continuing operations
- Invoicing decreased by 3.1 (increased 6.4) per
cent to EUR 1,641.6 (1,693.5) million
- Net sales decreased by 5.0 (decreased 1.2) per
cent to EUR 754.9 (794.5) million
- Adjusted EBITDA decreased by 7.1 (increased 4.9)
per cent to EUR 37.8 (40.7) million
- Adjusted EBIT was EUR 24.1 (28.1) million
- Profit for the period totalled EUR 15.8 (19.2)
million and earnings per share were EUR 0.09 (0.11)
Outlook for 2017
Despite the recent improvements in the performance
of the Consumer business, the result of the Business Area in 2017
will remain below 2016 level. The go-live of the IT systems in
Finland, planned for June, is postponed to the third quarter of
2017. The delay will result in additional costs in the Services
Business Area in 2017. In the Healthcare business the costs for
starting the Swedish dose dispensing production for the Norrland
region are higher than anticipated, and the result of the
Healthcare Business Area will stay negative in 2017.
Oriola has decided to divest its businesses in the
Baltic countries. In the Half Year Financial report the Baltic
businesses will be classified as discontinued operations and the
assets and related liabilities will be classified as Assets for
sale. The net sales of the Baltic businesses in 2016 were EUR 54
million and the Adjusted EBIT EUR 1.2 million.
Oriola's and Kesko's joint health and wellbeing
store chain was approved by the competition authorities in June
2017, and the joint venture agreement was finalized on June 30.
Oriola will report 50 per cent of the result of the joint venture
in the Consumer Business Area EBIT. The joint venture is expected
to be loss making during the build-up phase 2017 - 2019. Oriola's
share of the loss in 2017 is estimated to be EUR 1.5 million.
Oriola revises the guidance for 2017; The Adjusted
EBIT of continuing operations on constant currency basis is
estimated to decrease from the 2016 level. The adjusted EBIT from
continuing operations at comparable currencies, was EUR 59.3
million in 2016.
The previous guidance, published 13 February 2017
and repeated 28 April 2017, was that the Adjusted EBIT on constant
currency basis will stay at 2016 level which was EUR 61.1
million.
President and CEO Eero
Hautaniemi:
In the second quarter the sales of the Consumer
business in Sweden was at previous year's level in local currency,
and the market share remained stable compared to the first quarter
of 2017. The growth of the online sales during the second quarter
reached 91 per cent and exceeded market growth. The joint venture
of Oriola and Kesko received the approval of the competition
authority in June. For Oriola the joint venture is a strategic
entry into the Finnish consumer business.
The new distribution agreement in Sweden with Meda
started in the second quarter. The related investment into our
Mölnlycke warehouse was completed and taken into operation. The IT
system go-live in Finland, planned for June, was postponed to the
third quarter. According to our strategy we continued to expand our
service offering to pharmaceutical companies and pharmacies. We
signed the agreement to acquire a Swedish services provider, ICTHS
Health Support AB in July.
The number of people served by our dose dispensing
services grew by more than 20,000 in the first half of 2017 and
currently our services reach some 67,000 persons in Sweden and
Finland. The ramp up of production for Norrland region in Sweden
has taken more time than originally anticipated, and that has
affected the first half year's business result.
We have chosen to concentrate our resources on
developing the Consumer, Services and Healthcare businesses in
Sweden and Finland. Consequently, we have decided to divest our
assets in the Baltic countries.
Key figures,
continuing operations |
2017 |
2016 |
Change |
2017 |
2016 |
Change |
2016 |
EUR million |
4-6 |
4-6 |
% |
1-6 |
1-6 |
% |
1-12 |
Invoicing |
844.2 |
873.6 |
-3.4 |
1,641.6 |
1,693.5 |
-3.1 |
3,364.2 |
Net sales |
387.5 |
407.0 |
-4.8 |
754.9 |
794.5 |
-5.0 |
1,588.6 |
Adjusted EBITDA |
19.9 |
21.0 |
-5.3 |
37.8 |
40.7 |
-7.1 |
85.4 |
Adjusted EBITDA % |
5.1 |
5.2 |
|
5.0 |
5.1 |
|
5.4 |
Adjusted EBIT 1) |
13.0 |
14.5 |
-10.1 |
24.1 |
28.1 |
-14.3 |
59.9 |
EBIT |
12.7 |
13.7 |
-7.4 |
23.2 |
27.3 |
-14.8 |
57.6 |
Adjusted EBIT % |
3.4 |
3.6 |
|
3.2 |
3.5 |
|
3.8 |
EBIT % |
3.3 |
3.4 |
|
3.1 |
3.4 |
|
3.6 |
Profit for the period |
8.3 |
9.5 |
-12.1 |
15.8 |
19.2 |
-17.8 |
41.8 |
Earnings per share, EUR,
continuing operations |
0.05 |
0.05 |
-12.1 |
0.09 |
0.11 |
-17.8 |
0.23 |
Earnings per share, EUR,
discontinued operations |
0.00 |
0.00 |
-67.1 |
0.00 |
0.00 |
7.7 |
0.01 |
Net cash flow from operating
activities 2) |
51.3 |
21.7 |
|
36.7 |
-5.1 |
|
40.1 |
Gross capital expenditure |
|
|
|
24.8 |
35.4 |
|
88.6 |
|
|
|
|
|
|
|
|
Total assets 2) |
|
|
|
917.5 |
934.1 |
|
925.4 |
Net interest-bearing debt
2) |
|
|
|
84.4 |
66.2 |
|
72.3 |
Gearing, % 2) |
|
|
|
43.5 |
35.8 |
|
35.2 |
Net debt / 12-month EBITDA
2) |
|
|
|
1.0 |
0.8 |
|
0.8 |
|
|
|
|
|
|
|
|
Equity per share, EUR 2) |
|
|
|
1.07 |
1.02 |
|
1.13 |
Equity ratio, % 2) |
|
|
|
21.7 |
20.6 |
|
22.7 |
Return on equity (ROE), %
2) |
|
|
|
17.1 |
21.9 |
|
21.4 |
Return on capital
employed (ROCE), % 2) |
|
15.2 |
17.6 |
|
17.8 |
Average number of
shares, 1000 pcs 3) |
|
181,389 |
181,389 |
|
181,389 |
|
|
|
|
|
|
|
|
Average number of personnel |
|
|
|
2,701 |
2,260 |
|
2,425 |
Number of personnel
at the end of the period |
|
2,741 |
2,307 |
|
2,669 |
|
|
|
|
|
|
|
|
1)
Adjustment items are specified in table "Adjusting items included
in EBIT" |
2)
Includes discontinued operations |
3)
Treasury shares held by the company not included |
Disclosure procedure
This stock exchange release is a summary of Oriola
Corporation's Half Year Financial Report January-June 2017. The
complete report is attached to this release in pdf format and is
also available on Oriola's website at www.oriola.com/investors.
Analyst and investor
meeting
Oriola Corporation will organize a meeting for
investors, analysts and the press on Friday, 21 July 2017 at 10.00
a.m. at Hotel Scandic Simonkenttä, meeting room Tapiola, Simonkatu
9, 00100 Helsinki, Finland.
Next financial report
Oriola Corporation will publish its interim report
for January-September 2017 on 25 October 2017.
Further information:
Eero Hautaniemi,
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola.com
Sari Aitokallio
CFO
tel. +358 (0)10 429 2112
e-mail: sari.aitokallio@oriola.com
Distribution:
NASDAQ Helsinki Ltd
Key media
Released by:
Oriola Corporation
Orionintie 5, 02200 Espoo
www.oriola.com
Oriola Corporation’s Half Year
Financial Report January-June 2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Oriola Oyj via Globenewswire
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